The millennial generation (people born between 1981 and 1996) is facing struggles to pay off burdening debts, pursue or grow within their careers, build their families all while investing in their future. Stagnant wages, record-breaking debt and strict paycheck-to-paycheck budgets are the means of finances for most millennials, making it difficult for them to look into the future. As an investment coach, with multiple investments, I welcomed the opportunity to utilize my knowledge to help the millennial generation (or anyone in general) to start investing, grow your funds and better plan for the future. Starting to invest can be intimidating, especially with little education, that’s why I’ve decided to share my top tips for investing as a Millennial:
- Think of the long term when investing.
What are your goals? What do you need to do in order to reach those goals? Factor this in when investing. Always remember, investments don’t always go as planned, keep market fluxuations in mind and be ready to let it go if it isn’t working well for your account – or your goals. Ensure the ROI is worth it. You can do so by choosing an asset/investment that builds money for you over time.. my recommendation: Real Estate.
- Think long-term, while setting short-term goals.
Putting a system in place that allows you to hit little goals, with the large goal in mind, can help keep you motivated. Building up small amounts of cash can allow you make larger investments in the future, and you will learn about investing along the way, with less of a risk.
- Balance your debt.
Canadians have hit a record high for debt carried. Student loan debt can weigh you down, but it doesn’t need to entirely control your financial situation. Balance your funds for loan repayment and saving for your future. It’s important to pay off your debt, and try to do so as quickly as possible. But remember, having something that can grow is also important. Avoid building up more debt by focusing on the future instead of the present – struggle now to enjoy later.
- Find the investment style that works for you.
One of the most successful learning tools is Trial-and-Error. Mistakes don’t always have to be a bad thing, as long as you learn from them. That’s why it is important to start your investments off small, and research them before diving right in. Test different investments, and find the one that works for you and your lifestyle.
- Explore investing tools.
Online toold and apps that help you learn how to invest are readily available to us. Digital investing can help you to be more hands-on with your investments. Having a mentor or someone who is experienced with investing can help to make you feel more comfortable with the investments you are choosing.
- Have a game plan.
Although it is important to explore in the world of investment, it is important to go into it with a game plan. Don’t just pick a few investments at random and hope they work. Try planning out your investments by using personal knowledge and research. Have a goal for the future and how much you want to earn by a certain point.
- Don’t invest in what you don’t know.
If you don’t understand it, don’t invest in it. Period. It can be a person, asset or a financial decision, either way, learn something about it before you invest in it. As you plan for the future, start in an area that you are familiar with, or have some knowledge about and then grow from there.
- Understand the numbers.
Returns over 12% are unlikely, and if you find that, be very vary. Understand the numbers when your making an investment – how much are you putting in, how much will you be taking out etc. One of the biggest mistakes an investor can make is allowing someone else to make their investments for them without taking the time to understand the investment itself.