Investing is a smart way to have your money work for you. Some of the most common investment financial tips for millennials include starting slow, finding the best investment for you, saving gradually over time and ‘don’t sweat the small stuff.” That’s all easier said than done, however. A recent survey conducted by Bankrate says that only 26% of people under 30 years old are investing. Why is that?
Take these financial tips for millennials and start investing your money wisely:
1. Don’t Dwell on the Past Market
Older generations have had the experience of watching the stock market. While the market crash of 2008 is still most likely fresh in the minds of millennials. Yet, it’s not a reason to be afraid of the stock market. There are several options available for investors from low-risk income bearing investments such as bonds to higher risk equity investments such as stocks and mutual funds. All you need to do is find the best investment option for you.
2. Research Your Investment Options
Putting your money into something you don’t understand is always a bad idea. Millennials shouldn’t jump into any investment decisions before researching aspects of the investment.
Saving cash is always a safe bet, but it doesn’t help your money grow over time. Looking into mutual funds, stocks and bonds can help your money earn a rate of return. Although, you need to be comfortable with the investments you purchase.
3. Start Saving Little by Little
There’s never a perfect time to buy into the market. In fact timing, the market is frowned upon because it usually results in rash decisions and investment losses. The key to successful investing is to save regularly -- and there’s no better time to start that right now.
Start small and get used to how investing works; look at your statements and learn to understand how fluctuations in the market affect the value of your investments. One of the biggest mistakes millennials -- or anyone can make -- is jumping in feet first and investing chunks of money. Set up automatic payments to invest regularly into your investment accounts, from there you can contribute larger sums of money such as your tax refund or year-end bonus.
4. Focus on the Long Term
According to Forbes, one of the best financial tips for millennials who want to start investing is to focus on the long term -- you’re young so you have the gift of time. Put your money into the account and leave it there. Don’t check it every day and don’t worry about small locations because the money will be there for years to come.
If debt is one of the reasons why you haven’t started saving for your future, we can help. Don’t let debt hold you back! Contact us today for a free debt analysis!
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