After nearly 30 years of building complex portfolios for wealthy clients, I’ve read more dense, jargon-filled investment tomes than I can count. So when I picked up a book with “Broke Millennial” in the title, my expectations were low. I expected fluff, oversimplification, and maybe some bad advice about meme stocks.
I was wrong.
Erin Lowry’s “Broke Millennial Takes On Investing” isn’t just a good introductory book; it’s a brilliant and necessary roadmap for a generation facing financial challenges my clients never dreamed of. It tackles the single biggest question I hear from young people: “How can I possibly invest for the future when I’m drowning in the present?”
This book review, from the perspective of an experienced financial planner, breaks down what Lowry gets right, where her advice is most potent, and who should consider this their new financial bible.
Let’s determine if this book holds the key to unlocking your financial confidence.
📌 Key Takeaways on “Broke Millennial Takes On Investing”
- The book’s core strategy is financial multitasking—it provides a realistic framework for paying down student loans while simultaneously making consistent, automated contributions to a Roth IRA, combating the paralysis that stops many young investors from starting.
- It prioritizes investor psychology over complex tactics, addressing the fear of market volatility and analysis paralysis head-on. Lowry uses relatable stories to teach emotional resilience, which is a critical skill for long-term success that most beginner guides ignore.
- The guide is highly practical, offering specific advice on using modern tools like robo-advisors (e.g., Betterment) and micro-investing apps. It translates the theory of passive investing into actionable steps for a generation comfortable with digital finance.
Key Takeaways Ahead
The Core Philosophy: Ditch Perfection, Embrace Progress
Traditional financial advice often demands an all-or-nothing approach: “Pay off every penny of high-interest debt before you even think about investing.” For a generation saddled with historic student loan burdens, this advice is not just impractical; it’s demoralizing. It means potentially losing out on a decade of compound growth.
Lowry’s approach is a breath of fresh air. Her core message is one of financial multitasking. She argues that you can—and should—do both simultaneously.
💡 Michael Ryan Money Tip
Lowry’s multitasking method is psychologically brilliant. By contributing even $50 a month to a retirement account while aggressively paying down a 6.8% student loan, a young investor gets a powerful motivational boost. They see their net worth climbing from two directions at once.
- The Problem It Solves:
It combats analysis paralysis and the feeling of hopelessness. - A Planner’s Take:
This is a sound strategy because it builds the crucial habit of investing early. The opportunity cost of waiting to invest can be immense. For a deeper dive into this, see our guide on how to avoid lifestyle creep and prioritize saving.
Is “Broke Millennial” Your Money Game-Changer?
Broke Millennial Takes On Investing
⭐⭐⭐⭐½ (2,000+ reviews)
Take this 60-second quiz to see if Erin Lowry’s no-BS guide to investing is right for you!
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3 Key Lessons That Set This Book Apart
Instead of a dry summary, let’s focus on three actionable takeaways that demonstrate the book’s unique value.
1. Investing Doesn’t Start at a Brokerage; It Starts in Your Head
Lowry dedicates significant space to the psychology of money before ever mentioning a stock. She tells a particularly relatable story about her own fear and confusion when making her first trades.
Her key insight:
Your emotional reaction to a market dip will determine your long-term success more than your ability to pick the “perfect” ETF.
Why this is crucial:
I’ve seen clients with “perfect” portfolios panic-sell at the bottom of a recession, locking in devastating losses. Lowry front-loads this emotional training, teaching readers to define their risk tolerance and to understand that volatility is the price of admission for long-term gains, not a sign of failure.
2. Your Smartphone Is Your Greatest Tool (If You Use It Right)
This book doesn’t treat investment apps like Robinhood or Acorns as toys. It treats them as the primary vehicle for a new generation of investors. Lowry masterfully breaks down the different types of platforms:
- For Absolute Beginners:
She points to micro-investing apps like Acorns, framing them not as a path to riches, but as a tool for building the habit of investing. - For the Hands-Off Investor:
She explains how robo-advisors like Betterment or Wealthfront can build a diversified, low-cost portfolio for you, taking the guesswork out of the equation. - For the DIY Investor:
She provides the foundational knowledge needed to confidently open an account at a low-cost brokerage like Vanguard or Fidelity and buy your first index funds. When doing so, a key factor to consider is the expense ratio of a fund, which is the small annual fee that can significantly impact your long-term returns.
- Best for: Millennials and young adults ready to start investing but feeling unsure or fearful.
- Core Focus:
Demystifies investing using relatable language, humor, and practical examples relevant to the challenges faced by younger generations (like student debt). - Michael Ryan Money Insight:
Lowry does a great job tackling the "analysis paralysis" many new investors face. Getting started, even small, is crucial, and this book makes that first step feel achievable. - Read Michael Ryan's Full Broke Millennial Book Review
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3. The Debt-Investment Balancing Act in Practice
Lowry doesn’t just say “do both.” She provides a framework. The simplified version looks like this:
- Get Your Full Employer 401(k) Match:
She correctly calls this “free money” and a 100% guaranteed return. This is always the first financial priority. - Aggressively Pay Down High-Interest Debt:
Any debt with an interest rate over ~6-7% (credit cards, private loans) should be a primary target. - Make Consistent, Automated Contributions to a Roth IRA:
Even if it’s a small amount, start contributing to a tax-advantaged retirement account. A Roth IRA uses after-tax dollars, meaning your investments grow and can be withdrawn tax-free in retirement, which is a huge advantage for young investors who are likely in a lower tax bracket now than they will be later in their careers.
This tiered, actionable plan is one of the most valuable and realistic strategies I’ve seen in a beginner’s guide.
Lessons from Broke Millennial Takes On Investing
“Broke Millennial” vs. “The Simple Path to Wealth”: Which Is Right for You?
While both books are excellent for beginners, they serve different primary purposes. “Broke Millennial Takes On Investing” is the perfect starting point if your main obstacle is psychological and logistical. It excels at calming investment anxiety, demystifying the first steps, and creating a plan that integrates with existing debt.
In contrast, JL Collins’s “The Simple Path to Wealth” is the ideal next step if you’re ready for a singular, powerful investment philosophy. It’s less about the emotional journey and more about providing a clear, simple, and effective lifelong strategy: buy broad-market index funds and hold them.
- Read Broke Millennial first if you’re overwhelmed and need to balance debt.
- Read The Simple Path to Wealth first if you’re debt-free and simply want the most direct investing blueprint. You can find Simple Path to Wealth on Amazon.
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About the Author: Who is Erin Lowry?
Erin Lowry is a financial journalist and the creator of the award-winning “Broke Millennial” brand. She is a go-to money expert for major outlets like CNBC and CBS Sunday Morning. Her work focuses on making complex financial topics accessible and actionable, especially for young adults navigating today’s economic landscape.
Lowry has created more than just an investing guide; she’s written a permission slip for a generation to start building their future, even if their present is messy. It’s a financial lifeline that silences the noise of financial anxiety and replaces it with the quiet confidence of a clear, actionable plan. As a professional who has seen where bad advice can lead, I can say with confidence that this book leads you in the right direction.
It’s not just a recommendation; it’s required reading for anyone under 40.
Get Your Copy of “Broke Millennial Takes On Investing” on Amazon
📚 Explore Related Reading
- Read our review of “The Simple Path to Wealth” for a deeper dive into index fund investing.
- Discover the 5 best finance books of all time that provide foundational wisdom for any investor.
- Tackle your debt head-on with our curated list of the best books on debt management.
The Final Verdict: Who Is This Book Really For?
| Who Will Find Immense Value ✅ | Who Should Probably Look Elsewhere ❌ |
|---|---|
| The Overwhelmed Beginner: If you don’t know the difference between a stock and a bond and the word “prospectus” makes you sweat, this is your starting point. | The Seasoned Investor: If you’re looking for advanced strategies like options trading, tax-loss harvesting, or deep-dive security analysis, this is not the book. |
| Anyone with Student Loans: This book’s nuanced take on balancing debt and investing is, in my opinion, the best on the market for this specific dilemma. | The Day Trader or Stock Picker: Lowry’s philosophy is rooted in long-term, passive index fund investing. If you want to “beat the market,” look elsewhere. |
| Parents Buying a Gift for Their Adult Child: Want to give your kid a real head start? Skip the cash and give them this book. It’s financial literacy in a box. | The Academic: For a deep theoretical dive into market dynamics, you’re better off with Benjamin Graham’s “The Intelligent Investor.” |
Lowry has created more than just an investing guide; she’s written a permission slip for a generation to start building their future, even if their present is messy. It’s a financial lifeline that replaces jargon with humor and fear with a clear, actionable plan. As a professional who has seen where bad advice can lead, I can say with confidence that this book leads you in the right direction.
It’s not just a recommendation; it’s required reading for anyone under 40.
Get Your Copy of “Broke Millennial Takes On Investing” on Amazon
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