If you’re like me, then when you first heard the word “Invest” you automatically saw dollar signs go up. I don’t have parents who own shares in stocks, nor did anyone teach me anything about finance. I’d like to point out now money and finance are NOT the same thing. I realized late in the game that I need to step it up when it comes to finances. To finish stepping into adulthood that is.
To start off lets ask WHO can invest and the answer to that is…Anyone! Anyone that has income and pays taxes can invest in the stock market, into retirement accounts and other investing avenues. Some people have been lucky enough where a parent started investing for them as a child. Those contributions have likely grown and as an adult it helps them get a head start for paying on things like a house. If you weren’t so lucky it is never too late, start today so that you don’t regret it tomorrow.
You might be getting excited feeling like you can invest in anything, but let me point a few things out. You can either invest in a single company, in several, in an index, you can do an ETF, dividends, and more. So before you start handing our your money do some research on which is best for you. It honestly all depends on your Risk Tolerance (the level of comfort on how much you’re willing to loose). With high risk comes potential high gain, low risk means you’d rather be safe than sorry.
Now, yesterday, ASAP. After you’ve carefully chosen a place to invest, one where you foresee potential gains. I’m not rushing you, but its the compounding effect. If you start with with a $200 deposit with a 5% annual rate of increase, and leave it alone then it’ll be worth $530.66 in 20 yrs. BUT if you were to add an additional $50 every month that $200 would grow to $2,183.96 in 20 yrs. So if you were to take your tax returns or your bonus once a year and deposit that, plus a few dollars every month there is great potential. But let’s not get caught up too much on that, the point is to save for you future and allow your money to work for you.
Now I started investing on two apps that made it super easy for me. I used Robinhood where you deposit amount from your bank and the apps uses it to purchase the stock of your choosing. Acorns connects to your bank and uses the rounded leftovers from your everyday purchases but you can also choose to deposit a monthly amount as well. These are very simply platforms, so if you want to invest in a retirement account then you can try the Betterment or Wealthfront apps. These help you setup savings accounts, Roth IRA accounts and more. Very user friendly, informative and easy to handle.
Because it’s about time honestly to get yourself in a healthy financial position. At one point only the wealthy could invest with large sums of dollars, then those managing it would collect commissions and fees from then. But with all the robo-advisors out there and investing apps, it’s literally available to everyone. Put yourself in a better position for the future with no minimum amount needed or pay large chunks of management fees. And if your a parent like I am, because you can set a brighter future for the next generation.
Hopefully I pulled back a curtain for you and brought some light into what your perspective on money. It doesn’t have to be burden to have to pay your bills, loans, and debt then feel like your money is going down the drain. You can put aside a part of your money to set yourself up for a brighter future. Now, if you want to stay tuned to figure out how to budget, how to save, and more then check out some of my other posts.
If you loved how simple and easy this was to understand, share with a friend! Don’t keep this secret to yourself 😉 And drop a comment, I’d love to hear your thoughts.
Huguet Valladares is a Personal Finance Advisor dedicated to educating latinos, millennials and young professionals on how to get their finances straight. She is a wife to a wonderful Nicaraguan and mother to a beautiful 24wk old preemie. If you are ready to take “Adulting” to the next and final level, Finances, feel free to contact her at no risk. She is 100% committed to providing her best advise to get you out of debt, save for your future, and live financially free.
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