Former Miami Dolphins Exec Says Millennials Are Making These Money Mistakes

A former Miami Dolphins executive believes millennials are making some grave mistakes when it comes to their finances.

Matt Higgins, CEO and co-founder of RSE Ventures, has also been an executive for the New York Jets, as well as a guest investor on Shark Tank.

From his humble beginnings growing up in Queens, New York City, Higgins built an estimated net worth of $150 million. He started as an investigative reporter for the Queens Tribune before serving as former New York Mayor Rudy Giuliani's press secretary before entering the business and investment world.

Millennials, which span those born from 1980 to 1996, have faced more financial challenges than the generations of their parents or grandparents. Inflation's 3.2 percent rate has pushed groceries and housing to unaffordable levels as they make their entrance into their careers and consider buying a home.

And due to the skyrocketing cost of higher education, many millennials remain saddled with debt. The average millennial owes $117,000 in non-mortgage debt, and only 28 percent don't have any debt currently, according to a Real Estate Witch study.

Higgins, who built his wealth on his own, sees the many mistakes the average millennial makes, no matter their economic background.

For one, many wait until it's too late to build credit, he said.

"The problem with credit is you can never get it when you most need it, when you have been laid off," Higgins told Newsweek. "That's because no matter how much paper wealth you have or equity in your home, lenders won't extend credit when you don't have income to service the debt."

Higgins said millennials need to stockpile their excess credit when they don't need it and keep it tucked away in case of an emergency.

"Americans have no savings and yet are sitting on unprecedented equity in their homes, but many can't sell as the market is seized up," Higgins said. "So, take out a home equity line against your home and don't touch it. The rate will be high, but it will float down on the other side of the recession."

Consumers do not pay interest unless they draw down on it. And even if your home drops in price, the home equity lines are typically good for 10 years.

Millennials are also likely to wait before seizing on the next best industry innovation. This happened with Amazon, Tesla and bitcoin because too many from this generation wait until after the media is reporting on a topic to dive in and invest.

"Opportunity arrives before the tipping point of evidence," Higgins said. "So many people wait to experiment with innovation until the mainstream media gives the official blessing. But by the time the press says something is the next best thing, it's the last best thing."

It's happening right now with AI as well, Higgins said.

"Most people are just waiting to learn AI tools, and by the time they do, their job may have already been rendered obsolete," he said. "Take a view on innovation early so you can always stay one step ahead. Or else you'll become the person who dismissed TikTok as something that's just for dancing tweens and now spends all day trying to get followers."

Taking risks is also much easier when you're young, but many millennials think the best time to take a risk will come when they're older and more established, according to Higgins.

"We have this fantasy that as we get older, we grow safer, and from that position of strength, we will finally burn the boats for the business we always wanted to create," Higgins said. "The reality is much different. Humans become more risk adverse as we get older precisely because we have more to lose."

This can often lead to regret, so millennials should act now, rather than later.

"There's never a better time to burn the boats than right now," Higgins said.

Millennials, like some other generations, are also prone to waiting to jump on a stock until everyone else around them has done so first.

"The problem is, if everyone is talking about it, chances are the stock has run a good amount," Higgins said. "Now that doesn't mean it's a bad investment from hereon. It's just better to do your research and take a view independent of mass market validation."

"Opportunity arrives before the tipping point of evidence. If you always wait to act until there is validation, you will never create real wealth."