As a young person, what are you trying to do to prepare for your future? If you are a young entrepreneur, think of diversifying your assets. If you want to expand, don’t be scared to do so. You don’t have the funds? Build your credit right now, get a loan or an unsecured line of credit. There are many ways to secure capital.
A Millennial’s Guide To Investing
As early as now, you should start accumulating enough assets so that when comes a time that you are unable or unwilling to work in the future, you can have this cash flow coming back to you. What you want to do is to invest locally and globally too. You may never know which is the best place to invest on in the future. So spread your investments -70% locally and 30% internationally.
Invest in the Four Primary Types of Assets
When you think of investing, you think of the assets that you accumulate. And there are four primary types of assets – bonds, stocks, cash, and real estate.
Real estate is the best investments you could ever make. Think about the apocalypse. If you own a home, guns, and some food, you can sort things out in worst-case scenarios. Many financial advisors recommend that you should hold up to 5 to 10 percent of your assets in gold because gold has been a store of value in the medium of exchange in the last five thousand years. The US dollars has only been around for about 200 years.
Bonds are advisable for people approaching the retirement age. They want to buy a bond because its a contract that you are going to get your money back and get a stream of interest payments in the long run. The big risk in bonds is inflation and interest rates. When interest rates go higher, bond prices go down. When inflation goes up, the value of your money on the bond is going down.
Refinance Student Loans
After college, the first thing that you will have to do when you secure a job is to pay your student loans. This is non-negotiable just like the way you have to pay your rent, buy your food, pay your bills, and so on. You’re young and it’s the best time to refinance your student loans because you are not going to see interest rates that can’t be much lower than they are right now.
Jobs with Pensions
One thing to consider is becoming an employee of the public sector. You can be a teacher, a policeman, a fireman, a career military, city municipal employee, or state employees. Securing employment in these sectors will surely to give you a pension after 20 or 25 years of service. This is a fixed amount of money that goes up by some amount every year until you pass away.
So you are a millennial. You are earning about $40,000 a year before taxes. But you see there’s good news and there’s bad news. The bad news is that there are taxes and cost of living allowance that varies depending on the state you stay. Good news is that millennials are bigger in numbers and there is strength in numbers could actually help out. Nonetheless, regardless if you just finished college or already part of the employment or entrepreneurial group, you can make a difference and it all starts with personal financial planning.