If you’re a millennial, now is the best time to invest. Millennials are those in the age group between 25 to 40 this year. This generation has seen many advancements in terms of economy and technology. They grew up with things going digital, so most of them usually do thorough research online before investing. In today’s digital age of money, millennials are embracing technology to help grow their finances.
With most millennials done with school now and probably working already, more and more are looking for ways to invest their money wisely. The priorities of millennials today are far more different than the previous generations. Many are delaying retirement funds or buying a house and a car. Being the largest generation now, millennials hold an influence over investments.
What is investing? Investing means using your money to generate an additional income or resource. There are many different types of investments including stocks/ shares, bonds, investment funds/ mutual funds, etc.
If you’re looking planning to invest, start as early as possible. Think about your long-term financial goals. This age is the best time to grow your money. As you already know, money in the bank will remain stagnant and subject to inflation while investments can compound in time.
In the list below, we give tips to young investors who are looking for practical ways to grow their money. If you delay investing much further, chances are, you’ll have to invest more in the future. You don’t have to start big, even a small investment can go a long way. In today’s time, you can do your research or consult investment advisors. Financial literacy is a critical life skill. Financial planning is an important part of adulting and educating yourself about it can yield good results in the future.
Ten Investment Tips for Millennials
Considering investing your money as a working millennial? Check these tips and tricks below to help you decide and get started.
Check your income and expenses
Start with the basics. Know how much you are spending versus your income. Check your expenses, which of them are necessary, which can be avoided or better yet, cut down. The first tip to financial literacy is to get a clear picture of your monthly expenses. From there, you’ll see what to work with your budget. Tracking where you are spending your money can help you identify areas where you can cut costs even for a small amount. There are many ways to help you track your expenses, you can use mobile apps to do this to make things easier.
Set financial goals
Now that you know your budget, it is good to make a list of your short-term and long terms financial goals. Setting goals could give you a direction in terms of your financial behavior. Prioritizing is key when it comes to setting goals. What do you want to achieve financially shortly and in the long run? Do you want to have your own house, buy a car, take a vacation or start a new business? Writing down your goals with a timeline will help you visualize as well as motivate you to achieve them. It will serve as a roadmap in your financial journey. You can also do your research, ask family and friends, but it must be you who should ultimately set your goals in the end.
Insurance is important
Life insurance is much more affordable when you’re young. It is good to get insurance as early as now to prepare for the future. It covers not only you but your family as well. Many millennials are hesitating to get one because it’s an added cost to their long list of expenses. However, having insurance protection can help you save a lot in the long run. It’s a necessity more than a luxury for when unforeseen events happen.
Depending on the policy of your coverage, you’ll find it convenient than shelling out cash from your savings. There are many types of insurance: health insurance, life insurance, term, fire, etc. Consult with a trusted financial advisor now to help you evaluate the best policy for you.
Handle debt smartly
Part of financial stability is being debt-free. At your age, you might be handling different kinds of debts- from student loans to car loans, credit cards, etc. These loans come with an interest, so it’s best to avoid missing the deadline. Make sure to include paying your debts in your monthly budget.
Getting a loan is not a bad idea especially when you are just starting. While this is normal, strive for a debt-free life if you can. Prioritize what needs to be paid immediately. Pay the one with the highest interest rate and not tax-deductible. This is often credit card payments and student loans. To let you track your monthly expenses and debts, you can opt to use mobile apps to ensure your debt payments are on time.
Getting a loan will even help you in the long run as this will also be a way to build your credit capacity and once you will find the need to loan for a larger amount, banks can easily track a record and decide if you are suited for the loan application.
A look into the future- this means retirement fund retirement
Sounds a bit far-fetched but, saving early will be something your older self will be thanking you for. In your age between twenties to forties, you are starting to build your own life and fulfill your dreams. Your retirement years may be way ahead of you, but there is nothing wrong with starting as early as possible. You are at an age when you are capable and earning enough. Saving up for your retirement will spell a huge difference in the future.
You don’t want to be working your entire life or rely on your pension if ever you’re getting one. It will allow you to maintain financial independence at that age. Remember that your financial behavior now will have an impact on your retirement or future funds. You can start saving small, ideally, 5% of your salary would be good enough which you can increase up to 20% as time goes by.
Do not be afraid to invest
When you invest, make sure that it aligns according to your financial goals. There is no standard set of investments that will yield a high return. It varies per person how much he or she is willing to put at risk. You can choose to invest in low-cost funds. A good return can be measured by how low the fees are. There are multiple types of investments to start with. You can choose to do budget-friendly investments before going into higher risks investments.
Before you start investing, check your resources first. If you have an amount to spare, start small so as not to sacrifice your entire income. Be sure to prepare for it before investing. Do your research and align it with your goals. Do not just go into the trend, assess the market carefully. What works for others doesn’t necessarily mean it will work for you. You can also consult experts for investment tips and financial advice. Invest wisely!
Diversify your investments
As the saying goes, do not put all your eggs in one basket. Diversifying your investments can help reduce risks. Losses are most likely to be minimized in the event when the market drops. When that happens, do not worry immediately as your investment can still recover especially when you’re young. Portfolio diversification can also yield more gains for you but should be done in moderation. Mutual funds usually hold a higher risk but also yield a higher return on investment.
When you invest in a high-risk investment, consider also investing in a lower risk but steady investment. Make sure that you are not putting everything at risk and that you are protected from losses, or you can mitigate losses eventually. There are many ways to diversify your portfolio investment, you can consult investment advisors to help you assess better.
Risk tolerance is an important aspect of any investment. How many losses can you handle? The stock market can be unpredictable at times and declines can happen overnight. Think about how you can handle losses if ever this happens to you. If not, go for a safer investment than you can handle.
When you’re building your portfolio, determine how much are you putting into stocks and other assets. This refers to asset allocation. It will depend on your risk appetite as an investor. Assets usually shift from risky assets during the early years of your investment to a safer assets when you reach pre-retirement years.
Active vs passive investing
Are you a passive or an active investor? Active investors refer to those who try to invest in companies they think will make it big. Passive investors meanwhile invest at a little cost. It is also known as “index investing.” It is important to know the market thoroughly before choosing to invest.
Educating yourself is the key to a good investment. Know the risks and study which accounts you are willing to invest in. For millennials, it is good to invest in long-term assets for your long-term financial goals i.e. retirement.
Consider also other investments such as index funds which are managed passively and have low costs. There are also exchange-traded funds and mutual funds. Exchange-traded funds (ETFs) are also managed passively and do not require minimum investment.
You can use this investment to diversify your portfolio. Mutual funds usually have a minimum investment and are purchased through a broker. Its returns will depend on the underlying assets it is invested in.
Speaking of the long term, millennials can also look at property investment as an option at such an early age. Looking for a good location is the key to a good investment. In the Visayas, Bacolod City is a leading investment hub because of its economic growth and development over the years. It is one of the top livable cities in the country and was named the Top Model City of the Philippines in 2017 and 2019. Bacolod’s bright future makes it an ideal place for your next investment. Real Estate is on the rise with the presence of many industry players offering horizontal, vertical, and commercial developments.
Why invest in Camella Manors Olvera?
Looking for an affordable condo in Bacolod? Explore life in Bacolod with Camella Manors.
Camella Manors Olvera is the first project of Camella Manors in the Visayas to become part of Vista Land’s communicity. Camella Manors is Vista Land’s newest mid-rise condominium brand located in the regions and nearby provinces of Metro Manila. It promotes all-in lifestyle needs and resort-themed amenities that will cater to young professionals, starting families, investors, and Overseas Filipino Workers (OFWs).
A resort-themed condo, The Olvera pioneers hassle-free urban living amid a booming economy. The condo is ready for occupancy in its first two buildings this 2021. Camella Manors Olvera is a 1.1-hectare mid-rise condominium with a total of 4 buildings.
Located along Cordova-Buri Road, Mandalagan, this affordable condo in Bacolod will give investors the best deal for its money with its world-class amenities which include a swimming pool, kiddie pool, fitness gym, clubhouse, playground, and commercial strips. There is also 24/7 security to ensure the safety of everybody. It is also a pet-friendly community.
Camella Manors Olvera offers the perfect synergy of comfort and luxury. It is strategically located near malls, hospitals, schools, tourist attractions, and business districts. It is located 15 minutes away from the Bacolod- Silay International Airport.
Unit owners in Building 1 and 2 can finally enjoy their new home by the second quarter of the year. Both buildings, Ibiza and Majorca, are 7-story high. Each unit measures 30.36 sq. m. The pre-selling of condo units of the third building, Capri, will be opening soon.
To know more about Camella Manors Olvera, click here. Reservations can also be done conveniently and hassle-free through our easy-to-use online payment facilities.