As long as investment is concerned, millennials are not known for being the reckless generation. As per recent study published in the earlier part of 2018, Americans between the age of 21 and 36 are touted to be the most financially conservative generation since the time of Great Depression. They have always adopted a ‘prevention is better than cure’ attitude and this is helpful for them during times of economic turmoil and whenever they face unique fiscal challenges in life.
Given the fact that the job market has become more competitive than ever, the college grades have been burdened with staggering levels of student loan debt and hence it is pretty easy to check out why the millennials choose a rather less aggressive approach as long as handling their savings are concerned. So, what are the few investment tips that a millennial should keep in mind when he wishes to invest money and make it grow?
Analyze where the gaps lie
There is just a small chink in the armour and that is the stark difference between the few accomplishments of the millennials and their ability to obtain them. Keeping in mind that most of them view wealth as the ultimate goal, the readiness-aspiration gap is of 12 points and this is definitely of the biggest concern. In layman’s terms, it means that there is a wide disparity between the goals and the means of achieving them. Millennials aren’t making the right moves to maximize wealth.
How does your investment choice affect this gap?
Majority of the millennials devote a one-third of their share of wallet to their investments and hence they pay full attention to their saving. The choice of financial assets is restricted to the different financial assets like life insurance and fixed deposits. Although these devices are safe enough, they fall short on providing you with definite returns. This leads to a widened difference between aspirations and readiness.
What should be your next step?
Among the different insights that have been offered on millennials and the way they view personal finances, it was found out that creating wealth is of higher priority and the main stress should be given on owning your home. In case this is the goal which is also resonating in your mind, this will also gradually reduce the gap between readiness and aspiration.
Take a look at the bigger picture
Keeping in mind the fact that the best investment approach is not something that you can be taught, it is still necessary for you to give in the effort to inform yourself. You should seek help of an expert who can join your hands in delving deep within the online resources which are there for you. You can definitely have a better conversation with your financial advisor as this gives you better control on your finances. Therefore, being a millennial, you have to take good care of your finances so that you can build wealth and have enough money left for your retirement years. Take into account the tips given above.