Millennials in their thirties have an excellent opportunity to invest in their medium to long-term futures. At this age, you have the resources, experience, and time to consider investment strategies and make wise choices. Still, investing is not for beginners, so try to swat up first.
#1: Cancel Debt
Whether you want to save for the short or long term, you need to cancel ‘problem debt’ before you can make progress. Of course, not all debt is bad debt, some of it is required to make life progress, but if you are losing money because of high-interest rates, you need to stay focused.
Staying focused is important, but there’s no need to focus on one thing at a time. While you pay off your bad debt, you can spend the time learning about investment strategies and techniques; then, when you’re in a better position, you can hit the ground running with the investments.
#2: Choose Accounts
Unless you have a large chunk of change, you will probably start investing on a small scale, with savings accounts and bank accounts. Most millennials don’t realize they are already investing with a conventional bank account, but they aren’t getting the best interest for cash.
Bank accounts reward customers with interest for keeping their money with them, but it is not always the best value. The alternative is to open a high-interest savings account that returns more interest for your savings. This is also a mindset you need to develop to be an investor.
#3: Save Small
If you don’t have a large chunk of change to invest in, you can still make savings and small investments. Start with high-interest saving accounts and short-term investment opportunities. Short-term investments include things like bond funds, corporate dividends, and mutual funds.
In order to save, you need a budget that covers all of your expenses and sends some of your income to a savings account. Nowadays, there are also helpful apps that link to your account and use algorithms to save and invest money for you; one of these apps is called Plum.
#4: Learn About Investing
Whether you are in a position to save or not, you need to start learning right away if you want to make serious gains in financial investments. The good news is there are plenty of professional avenues to start your studies, such as finance courses from Wall Street Prep, with the flexible study.
Investing is a complex business. And there is a lot to learn. So the sooner you get started, the better. Proper lessons and courses are often better than online videos and articles. This is because you get professional information that gives you actionable strategies and confidence for investing.
#5: Choose Wisely
Before you make any serious investments make sure you understand the nature of the investment opportunity. Decide on your investment goals, short, medium, and long term, and assess the level of risk you will be taking.
Wise investments are often shrewd and offer substantial returns. If you’re unsure about anything, consider partnering with a mentor.