If you’re a millennial, it’s likely that you face a few unique challenges. First, you’ve probably weathered tough economic times. Mostly thanks to fluctuations in the overall economy at some early, critical times in your career. Second, there are a lot of opportunities that didn’t exist for older generations–such as millennial investors. That makes it tough to get sound financial advice from parents or other older adults, or even Gen-X siblings.
There are certainly some tried and true personal finance principles that still apply. Like paying off your debt and having an emergency fund. However, there’s plenty of investment opportunity on the landscape beyond many of the traditional routes to financial security. The tips below can help you explore some of those opportunities as a millennial investor.
There are so many tips for beginner investors. Plus, it is easier than ever before to get started in traditional investing. All you need is a little money and an online brokerage account. As little as $100 is enough to get you started, and it’s easy to set up an account.
After that, you can let a robo-advisor decide on the best use of your money. However, there are other possibilities discussed below that may sound more exciting.
You may not have enough saved up to make a down payment on your own home. Much less than enough to purchase an investment property. Or maybe you just feel like buying property is too risky these days.
You may not be aware that you can purchase shares of property for rent, which still earns you money but takes away many of the headaches of being a landlord. If you’re looking for an investment opportunity that will provide you with passive income, you can browse some of the properties available.
If you’re primarily familiar with crowdfunding as a way for people to raise money for small projects, you might not be aware of equity crowdfunding. This can be an interesting way for you to make an investment that could have substantial returns.
These investments can be risky, so you shouldn’t put money that you need toward equity crowdfunding. However, they can also be great opportunities for people with far less capital than traditional investors with high net worth. Furthermore, the possibility that you could lose the money you invest is balanced. Due to a potential for substantial returns if the company you choose is successful.
Millennial investors talk a lot about cryptocurrency. But it can be difficult to conceptualize exactly what it is. You may start to feel like your head is spinning as you read about things such as mining for currency and blockchains, but the truth is that it has become much more user friendly in recent years, and you do not need to have a sophisticated understanding of the technology involved or spend hours mining in order to take advantage of this new form of investing.
There are well-known and trustworthy exchanges to purchase cryptocurrency to get started. This can be a volatile but interesting place to park some of your money. Good luck, young investors!