Investing While You're Young


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Being young with money is a good combination. It means you have a bright future ahead with giant upside- if you invest wisely. Having money doesn’t mean anything if you don’t manage it properly. Instead of finding ways to spend money, you should be looking at ways to invest and grow what you have.

Don’t Treat A Stock Like A Savings Account

Find one of the big stocks that are consistent and buy when they are a good value. You’re not looking for something volatile, or for something to sell later to make money. So big guns like Disney, Amazon, Apple, Google, Microsoft and similar companies should be in your crosshairs. Take some money that you are comfortable with never seeing again, and invest. It doesn’t need to be a sizable amount, as a two or three shares will do. If you do this for a year, what is your return? These type of stocks need a large investment just to see any type of return. If you want to earn money on your money, open a savings account that has a good interest rate.

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Don’t Touch Your Emergency Fund

If it isn’t an emergency, then it doesn’t come out of the fund. As simple as that rule is, it is broken daily by people that have money burning a hole through their pockets. Burning through your emergency fund will only make life difficult when something happens to go wrong. Look at alternative options, even if it means selling things you don’t want to part with. Car and medical problems top the list for actual emergency fund needs. Everything else should be looked at with a microscope before you even dip into your funds.

Stay Out Of Debt

Yes, it sounds simple, but is it? Spending your young years paying off debt will prevent you from using money to invest in stocks, bonds and other opportunities. There are even people that contribute less to their 401k just to pay off some debts that have gotten out of control. Paying off debts is a major reason why it is hard for young people to invest into things that matter. At this point it isn’t even about finding the best returns for your investments, since you’re spending a bulk of it trying to get out of the hole. Multiple opportunities to grow your money will pass you by if you don’t stay out of the debt bubble.

How Much Do You Need For Retirement?

Even if you are 18 years old or older, this is a question that you should already know the answer to. From the moment you start working, retirement information begins to change. For young investors, figure out the how and why of retirement before committing money. It takes no time at all to get a general estimate of what retirement will look like 40+ years from now. Prioritize retirement information that pertains to where you want to be instead of where you are now. That will give you the motivation to work hard and make sure your retirement meets expectations.

Easier Said Than Done

Youth and money is a powerful mix. There are many ways you can invest, but not all of them equal smart choices. Find a way to turn your money into something greater than what it is. Plan your retirement and don’t waste your emergency funds. Following all these tips will keep you prepared for whatever life throws at you. And when things get rough, you’ll have the mentality and the funds to power through it. Youth and money ia a powerful mix- don’t waste it. 

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