Millennials – people who were born in the 1980s or 1990s – like to “live in the moment”. In today’s fast-paced world, a large part of the crowd, usually youngsters, tend to be so indulged in the present that they completely forget about the future. But the irony is that tomorrow is bound to come and that is when we will find ourselves to be in a pickle. The truth is that nobody in this world is gonna remain “Forever Young” and for us to have a happy and comfortable ending, it requires long-sightedness and proper planning towards the right future. Just as it is important to invest ourselves in the present, so it is also important to start putting money aside for a better future.
Various factors lie behind the low investments of millennials. Large scale unemployment, difficulties in bagging good jobs that pay well, have added to the trouble of youngsters to save money and invest. Furthermore, many millennials do not understand the basics of investing and also find it difficult to trust the stock markets, thereby hesitating to put out their money in the market. But it is very important that they take an active interest in building their financial security. Here are a few tips that will help millennials to step up the investment game:
1.Find An Advisor Whom You Can Trust
For someone who’s new to the world of stocks, bonds, shares and mutual funds, the experience might leave you overwhelmed and confused. Hence, the wise thing to do would be to seek professional help from a financial advisor who could guide you in the right direction and suggest the move that would be best suited for your financial status.
2.The Time To Invest Is Now – Start Investing
The most important thing to remember is that you cannot put off saving and you must start thinking about your future today. The key to financial stability is to develop the habit of saving and investing right, with the motto – “buy low and sell high”. You’ve got to research the safest platforms where you can put your money, then set aside the required funds and finally invest.
3.Find The Right Place To Invest
When investing, make sure that you have the requisite knowledge about all the sectors of the market. This will include stocks (both in the developed world – Europe and Japan- and the budding markets), consumer staples, consumer discretionary stocks, as well as popular technology stocks. By diversifying your investment game you will ensure a greater chance at a healthier financial growth.
4.Always Keep Track Of The Progress Your Investment Is Making
It is extremely important to keep a watchful eye on your investment progress to ensure the safety of your finances. If you do not indulge in checking and managing your investment portfolio on a regular basis, chances are that you might miss out on opportunities for potential growth or set yourself for incurring losses.
5.Make It A Point To Grow Your Savings Rather Than Your Lifestyle
While the saying “Make it Large” may sound very alluring, you should know better than this to allow yourself to fall into the trap of humanity’s never ending list of wishes. It is really foolish to daydream about having an extravagant lifestyle without the money. The wisest bet for a millennial, thus, would be to get rational and logical and develop a lifestyle that would allow one to save the adequate amount for ensuring a smooth life throughout.
6.Always Think About The Long Run
Oftentimes it happens that while planning things out, we tend to lose sight of the bigger picture. This attitude can prove to be very harmful, especially in the investment sector. Investors should always plan as such that will provide opportunities for the long-term growth of one’s numbers and development of his/her financial status. One should be on the lookout for those companies with promising strategies of financial growth in the years to come.
A recent trend has made its way into the investment world- ‘Impact Investing’. Many people nowadays want a little more than just making profit from their investment. They want that their investment should also make a difference in the world. So they incline more towards sectors that they think will help in creating a sustainable world, rather than those that are reputed to having a negative impact on the society. Thus, it’s more like socially responsible investing. Whatever be your take on investing, these few tips and tricks will surely help you to get off the skeptical couch and start saving up.