Millennials Save, but Do They Invest?


Investing is just one of those things you will get around to at some point, right? Like cleaning. Life is busy and you have a million things to do, so why focus your energy on investing? You may think of investing is something your parents did; maybe you figure that you’ll get around to it when you’re their age.

Invest what?

You’re probably saving your money, which is great — but saving is one thing, investing is another. Investing means making an active decision to make your money work for you. It’s not easy, but it can be rewarding.

Start today

The crucial part about investing is that it works better the earlier you start. If your money has to work for you, it needs time. You’re not going to get the full benefit of your investment if you keep putting it off for later. Don’t keep saying, ‘I’ll get to it.” Instead, start today.

Risky business

Th younger you are, the more willing you’ll probably be to take more risk than your parents, which holds for the type of investment you’d probably be interested in. Generally, the greater the risk the greater the potential return, but you can’t only go after the high-risk stuff because you could lose it all — and where would that leave you?

You need to mix your investments and your risks. A mutual fund may be a good option if you want to play it safe; you may want to consider stocks in a fast-growing company or industry.
Cryptocurrencies promise great returns, but you could also lose big.

Have an adjustable plan

Once you’ve decided what kind of investments you’d like to make, create your plan. You need specifics like how much money you’re going to invest and what types of investments you’re going to put it into. Different investments carry different types of risk. If you’re choosing stocks or mutual funds, you have to look at what companies or industries you are going to invest in.
Choosing where you want to invest your money is important; it’s as much a statement about you as it is abut your investment.

You need to be comfortable with the companies you’re investing in. What products do you use? Is there an opportunity to invest in the companies that make your phone or apps you use or the clothes you wear? Find out about them. What do these companies stand for? What do they do with their profits? Once you’ve made your plan, stick to it, but be flexible.

Stay ahead, stay informed

Admit it: you spend most of your day online. The great thing about life nowadays is that we’re always connected, with a wealth of information at our fingertips. Why not spend some of that time learning about and tracking your investments? What about the industries or businesses you’re invested in?

In a technology-driven world, things happen fast. Investments that seem viable today may not be tomorrow, all driven by new developments. Companies and sectors also change, so stay in touch; stay one step ahead.

With a bit of effort, investing can become a regular part of your routine. Make your money work for you!