Wise Investment Options For Millennials
Millennials are famous for being adventurers. They are known for exploring different activities like traveling and trying out every Instagrammable restaurant in town. Unfortunately, millennials are also too adventurous, causing them to become careless in handling money.
According to studies, only a few percentages of millennials are exploring financial risks and diving into investments. Most of them prefer to handle money in the most unsafe ways. But this doesn't necessarily mean that they aren't good at managing money. After all, we have different priorities at different stages in life.
Investing is the process of allocating part of your income to purchase assets that can produce more revenue. If you are one of the many millennials seeking the safest ways to invest your money, you've come to the right place. Here, we are going to talk about numerous wise investments you could try.
Investment Options
Bank Investment Products
Did you know that apart from a savings account, you can also try out other bank products? Most people, not only millennials, think that banks only offer savings and checking accounts. But that's not how banks work. They also offer money market accounts, term deposits, and fixed deposits. These types of products allow your money to grow with interest rates that change daily.
Insurance
One of the best ways to save money is by preparing for potential problems like injuries, hospitalization, property damage, and many more. Insurance plans help policyholders avoid financial loss. Plans are paid according to the agreement, such as monthly, yearly, or one-time payments.
Real Estate
Among all investments, buying your own home is probably one of the wisest decisions you'll ever make. What's great about real estate is that it offers different payment terms and can be adjusted according to your capacity to pay. For instance, you can buy a preselling condo and start paying while it's still under construction. After paying the down payment monthly, you can apply for a home loan to pay for the unit in the following years.
Small Business
Understandably, most millennials are on the stage where they are still trying to build their careers. So not all of them have the time to manage a small business. However, investing in a small business can provide passive income. You can start a small clothing business, service, or anything you can offer.
Bonds
Bonds are the money individuals loan to the government or private institutions. The borrower uses the money to finance its projects and must be paid in an agreed period. Compared with other investments, bonds offer guaranteed returns, but the interest rates are not as high.
Stocks
Stocks have been a traditional way to earn extra income without doing all the hard work. However, not all millennials are willing to take the risk. Buying stocks allows an individual to have some minimal ownership of a company. Once the company earns, the stockholder will receive the amount according to the agreement.
Retirement Fund
The best time to prepare and save up for your retirement is while you're still young. Investing in retirement funds allows you to keep enjoying the moment without worrying about the future. Private companies and banks offer retirement funds, and you can pay them in your preferred terms.
Education
You might think that education isn't as crucial as other investments, but that's where you're wrong. Knowledge and education will open many opportunities for you to explore. In addition, education is the only type of investment that won't fail you.
How to Invest
Investing can be pretty challenging at first. But don't worry because, over time, you will learn how to predict risks and potential failures. Like for other millennials, it takes time. Here are what you need to know before you start investing.
Research. Study how investing works by reading books, attending seminars, and watching tutorial videos.
Goals. Before you start, determine your financial goals. List down the things you want to get by investing.
Budget. Investing is a risk. So one of the first things you need to know is to never put all your money into one investment.
Diversity. There are many investment options to guarantee that you will earn, put your money in different investments and not just in one place.
As mentioned, investing has its risks. There is a possibility of losing money if you don't do your research well. The best way to avoid total loss is by spreading your money on different investment types. Plus, make sure to spend your money wisely, always prioritize your needs to prevent financial loss.