“Saving early and often could make you financially secured in the future.” This is one of the messages a lot of millennials hear on a daily basis. That’s why it influences them to save at least 15% of their paycheck every month and invest it somewhere.
Although millennials may seem quirky, as if they don’t care about what’s happening around them, it doesn’t mean that they are good for nothing. Most of them were at an impressionable age during the financial crisis and this left an imprint in their hearts. You can say it’s a lesson learned the hard way. That said, we have gathered some of the best investment advice millennials should consider.
1. Putting Money in Real Estate
Perhaps, the easiest way for millennials to invest their hard-earned cash is through buying mutual funds based on property. If they’re up for the risk, and would love to enjoy more returns, then real estate investment trusts, such as REITs are also worth considering. Fortunately, even those with limited knowledge about real estate can still invest– with the help of an investment broker. These experts would evaluate and purchase the real estate funds on behalf of the investor.
2. Invest in Bitcoins
There’s a lot of reasons why you should be investing in bitcoins. One of them is the “investability” characteristic bitcoins have. It opens the idea that investors could take capital and have exposure to this type of asset class. This has been made possible because the bitcoin exchange trading volume has an average of $1 billion a day– that was back in 2016. Let’s also not forget the fact that bitcoins also have the same liquidity of the largest gold ETF. Considering that, bitcoin could be a very liquid asset over time– this is what a lot of expert traders love. Not just that, it’s accessible wherever you are, making it more liquid as compared to assets siloed with borders.
3. Pick the On-Demand Stocks
Since most millenials are probably the children of the stock-loving Baby Boomers, there’s a great possibility that their parents are also encouraging them to join the stock market, and they should. For the following years, the stocks would continue to deliver bigger returns than both cash and bonds. This could help the millennial’s cash to grow their own business through commissions and fees.
4. Try Crowdfunding
Most older investors would worry whether their money is safe or not with crowdfunding– this is what makes millenials different; they are ready to take the risks. They’d invest in new tech companies, craft breweries, and many more– just like how they buy stuff through Kickstarter.
Additionally, there’s a reason why a lot of young investors are getting interested with using online crowdfunding services, such as property crowdfunding and strategic land investment. Although most millennials don’t have a home nor pension yet, the know the best ways to grow their funds, and that includes taking advantage of technology. With Property crowdfunding, millennials could earn some regular returns on their investment after a period of time.
5. Invest in Startups
One of the good reasons why you should be investing in startups, especially if you’re a millenial is the fact that it will help you diversify your portfolio, and this would have a positive impact on your overall performance as it will also introduce private equity and you’ll be able to venture capital into the mix. Likewise, the performance of startups isn’t always affected by the macro-level market shifts because they could easily pivot. That’s why you wouldn’t even have to worry about the risks related to it, but be able to increase returns.
Millennials. These are people born between 1981-1992; they have a different outlook about work; very different from what the Generation X and Baby Boomers had. This generation is the Internet generation, and could easily access the information they need right in front of their fingertips. That’s why it’s also a generation who wouldn’t just go with the flow, but would be willing to take risks just to achieve their goals. When it comes to financial matters, they will be willing to invest as long as they would be able to gain positive returns after That said, we hope that these investment ideas could help the millennials out there determine which investment to try.