Millennials tend to get a bad rap when it comes to money. You’ve heard the tired, old lines about avocado toast, conveniently ignoring factors like stagnant wages, rising living costs, and an unprecedented student debt crisis. It’s a generation that entered the world of work after a 2008 financial crisis (which didn’t cause it at all) and never had the chance to build the nest egg that previous generations had enjoyed. Meanwhile, millennials continue to pay for social security despite little belief they can rely on when they retire.
Needless to say, these grim realities only hint at people’s greater need to be financially literate. You literally cannot afford to be careless with your money and so you should do whatever you can to grow your hard earned cash.
Ankur Jain understands this well, which is why the 31-year-old co-founder and CEO of Kairos HQ has focused on building a portfolio of companies that make life more affordable in terms of expenses such as health care and childcare. His latest endeavor, Bilt, is aimed at housing. More than a third of Americans are currently renters, according to the US Census Bureau.
“Rent is our single biggest expense … and it’s no closer to home ownership,” says Jain.
Bilt is the first credit card and rewards program that allows you to earn points for rent at no charge, and even accumulate credit for a future mortgage.
As someone who’s done their fair share of smart financial moves, we partnered with Jain for his best tips on how to manage money, use entrepreneurship to solve problems, and what we can do to fill the wealth gap.
What originally made you want to become an entrepreneur?
I didn’t want to be an entrepreneur. It started with just wanting to solve problems that I was facing myself. I accidentally started my first company when I was 11 after getting my first cell phone. It was so hard texting people on T9 (yes, I’m getting old now) that I learned to code and developed a service that would allow you to text your friends’ phones directly from your web browser or AIM. It spread like wildfire and at one point we had nearly 2 million people using it!
Your businesses focus on trying to solve social problems. In your opinion, what is currently the most pressing social problem?
That life is getting more and more expensive, but less and less as a generation. Housing costs more, but we get less space. Health care is getting more expensive, but care is getting worse. These are problems that innovation can solve.
What’s one misconception about millennials that really annoys you?
That we are not “financially responsible”. I believe our generation is really good at making the most of a difficult situation. We have been pushed into mountains of student debt and have worked our way into tough job markets and record rental prices. Still, we manage to find ways to live our lives and still pay the bills. The idea that buying “avocado toast” for breakfast suddenly “spoils” us is absurd.
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Let’s say I just finished college and am independent for the first time in my life. What is your advice on how to get started with managing my personal finances?
Make sure you start building credit early. This will save you thousands of dollars over the years – and not just on loans. For example, you can qualify for apartments with a much lower reserve requirement.
What was the last purchase that changed your life?
The peloton tread. Given the long hours, having this at home is a lifesaver when it comes to having time to exercise during the week.
What was the last book you read that challenged a preconceived notion?
Never Share the Difference: Negotiate Like Your Life Depends On it by Chris Voss.
Who is a lesser known entrepreneur who inspired you?
Ben Marathapu, one of our partners at Cera (the UK’s leading healthcare technology company) who takes healthcare change so seriously but proves this can be a great business opportunity.
Are there any resources you would recommend for beginners when it comes to learning more about personal finance?
The Points Guy is an excellent resource for learning how to make smart decisions when it comes to choosing a credit card and maximizing your benefits. There is so much that can be done with all of these points. The @KairosHQ Instagram is also a place where we share personal financial content and memes that resonate with our generation
What is a purchase that you really regret?
Every dollar I’ve spent renting in San Francisco.
What problems do you see with the current home buying experience?
The whole process is opaque and confusing. It’s hard to tell how much you can actually afford, how much you should save, what is a good interest rate, or how well you are actually handling the house. Not to mention, when you’re spending all of your money on rent every month, it’s so hard to save for a down payment.
In this regard, what are some of the issues you see with the current tenant experience?
Rent is our largest single expense. And yet 80% of rental payments are still made by check or cash. On-time payments don’t build our credit history, even if you don’t pay on time, it hurts our creditworthiness. And renting doesn’t get you any closer to home ownership.
Wealth inequality is an existential problem in our country. What do we need to do to fill the gap?
Historically, access to home ownership has been the single most important factor in wealth creation. It is the only form of indebted equity that most people will ever have on this scale – and that is only possible thanks to government support. We need to make sure that more people in our generation can build a way to own their homes or else inequality will get worse as a small fraction of Millennials own homes that are increasing in value while the rest are stuck and live from paycheck to paycheck.
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How does money (both it and not) affect mental health?
As if life didn’t have enough to worry about, worrying about the monthly bills can have serious mental health implications. If we can help people take care of the basics, we can relieve that stress and give people a chance to move forward. This is why the stimulus checks had such a significant impact on getting people through the Covid crisis.
What do you see as the greatest innovation in 10 years?
CRISPR is and will change healthcare forever. As CRISPR moves forward, we will be able to manipulate our own DNA so that we can finally fight so many chronic diseases that were previously unsolvable.
The disillusionment is quite high right now, both among the people in government and among the people in the financial sector. How do we overcome this disillusionment?
The rhetoric in big institutions and governments has become so toxic and polarizing that it’s no wonder people have lost confidence. The needs of the vast majority of us are drowned out by loud voices. We need these institutions so that ordinary people come first. We need them to be transparent. And just finding sensible solutions to the things that really matter. Not just what gets them another PR hit or a viral tweet …
What cannot money buy?
Trust.
What is the first thing you do when you wake up in the morning?
Check my phone.
What’s the last thing you do before you go to bed?
Kiss my girlfriend good night.
What is your personal mantra or motto?
Do things according to the book. Just be the author.
How would you define “strength”?
Consistency to success. Don’t let “no” stop you from doing the important things.
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source https://dailyhealthynews.ca/we-asked-kairos-hqs-ankur-jain-20-questions-about-money/
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