With so much investment advice targeted to the previous generations, millennials may be wondering what they can do to start investing. Here is some advice for millennials from a millennial.
Many millennials today, at least that I know, aren't concerned with long-term investing. Student loans and the high cost of living in some areas cause millennials postpone the thought of investing to a later time. However, the earlier you can begin investing, larger and more quickly your wealth will grow.
Here is some words of advice from a millennial to other millennials on how you can get started.
Accumulate Enough Savings to Invest
The first step to investing is to actually have money to invest. In order to accumulate this money, you must live below your means and save what is left over. Weather you have a 9-5 job or are an entrepreneur you cannot spend every penny you make. For many it may be a better idea to save first, and spend what is left over.
One the best tips of advice I ever received was to take a percentage, or fixed amount, of each pay check and immediately move it into a savings account designated for investments, before spending the money on anything else. This is a great habit to form as you will be able ensure the growth of your investment account over time.
Increase Your Income
Now that your in the habit of saving a portion of your income, it is time to focus on increasing your income. By increasing your income you will be able to save more.
Depending on your personal goals and desires, you may be able to live on a fixed amount and save everything above that number. As your income increases, this will be the fastest way to accumulate savings to invest. On the other hand you may decide to continue saving a percentage of your income, which will also help you save more as your income grows.
There are numerous ways to grow your income, for many that will mean having activities outside of their 9-5 that generates revenue. Some ideas include:
- Working a part-time job in sales
- Starting an eCommerce website or store (Amazon/eBay)
- Blogging and affiliate marketing
- Day trading
- Becoming a real estate agent
- Dog walking
The Bottom Line
In order to invest you need to have money to invest first. You have to obtain this money by saving a portion of the income you earn on a consistent basis. Increasing your income will allow you to save more towards investing and ultimately build your wealth faster.
Babylon Property Group provides private investment opportunities for investors looking to diversify their portfolio outside of traditional securities found in typical 401(k) and IRA plans. For more information please contact us by phone at (631) 253-1609 or email at firstname.lastname@example.org.