As long as investing is concerned, millennials are infamous for their reckless attitude. According to a study by an eminent group earlier in 2016, Americans in between the age of 21 and 36 are the most financially orthodox generation since the time of the Great Economic Recession. The economic turmoil that they’ve been through since the recession has forced them to adopt a ‘better-safe-than-sorry’ attitude towards their finances. They seem to be always ready to face the unique challenges of the financial world. As the job market is more competitive than it ever was in the last few years and the newly passed-out college grads are saddled with the astronomical debt levels, it’s easy to conclude the reason behind millennials adopting this aggressive approach towards their handling savings.
So, in case you’re a part of this breakneck Generation Y who’s ready to dip your hands into the investment world, you should remember a few basic points in mind. Check them out and try to follow them while making your personal investment decisions.
Look for a financial advisor whom you can trust
Have you ever delved into the world of bonds, stocks and mutual funds ever before? If answered no and if this is the first time, it is pretty easy to feel overwhelmed by the large volume of investment choices that you’ll find in the market. Therefore if you find someone who can offer you rational and unbiased service on what financial moves to make is vital for your financial health. You might feel tempted to seek help of the financial advisor who helps your parents, but it is always better to take advice from advisors who specialize in advising people of the same demographic as yours.
This is perhaps the right time to start investing
That you can’t afford to put off saving is one of the most vital monetary lessons that the millennials learned from the last recession. If you are still not shelling away a portion of your income on a daily basis, your first priority is to find out the most ideal investment vehicle. If your employer offers a 401(k), that should be a decent start for you. You can reduce your taxable income by investing in 401(k).
Know that you may face challenges in the near future
Knowing the reason why people under the age of 30 aren’t engaged in any investment portfolio is a rather good way of gauging the difficulty of investing. One of the biggest reasons behind millennials not investing money is that they don’t have enough money or at least this is definitely why 54% of the surveyed millennials didn’t invest. The next reason is financial ignorance as more and more investors don’t have enough knowledge on what to do and what not to do.
Avoid incurring debt as debt can mar your investment goals
Millennials are that generation which have incorporated enough advances of the entire financial sector and they are also poised to reap benefits of the future advancements of this industry. Whichever store you visit nowadays, you will find the credit card processing machines and businesses which speak about 0% down payment loans. Hence, if you think you’re in debt at present, do everything that you think you can do to repay the debt. Once you pay off debt, get in touch with a credit repair firm to bring back your personal finances in order.
Millennials are usually lucky enough to have the element of time on their side. You should know how to position your finances and grant yourself a safe retirement sans debt. Follow the investment tips listed above to make some measured and informed decisions.
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