5 Investment Tips for People in Their 20s
August 24, 2020 (Investorideas.com Newswire) The financial choices we make when we are in our 20s can set us up for either financial success or financial ruin. While it might seem premature to start looking towards retirement in the first few years of your career, rest assured that it's never too soon to start preparing for financial stability.
One way to ensure long term stability is by investing as soon as possible. Here are five tips that can help make your road to investing and growing your career smooth and easy.
1. Take advantage of employer contributions.
Most employers offer some sort of investment match, whether it be via a Roth IRA, 401k, or another savings account. Typically, they will match everything you put into the account up to a certain amount. Simply put, this is free money that you should be taking advantage of!
For example, some employers may match up to 5% of your annual income. What this means is that anything you put into this, up to 5%, will be matched dollar for dollar by your employer. Say 5% of your income in each paycheck is $200. If you contribute that much to your savings account, your employer will as well, giving you $400 at the end of the day.
Don't waste the opportunity to take advantage of free money. As soon as you start your job, talk to the financial department about how you can enroll in this benefit, if available.
2. Choose the insurance plan that's best for you.
You never know what might happen, so it's always wise to invest in insurance to cover you if something catastrophic occurs. One example of this is income protection insurance, which allows individuals who pay a premium can be insured in case they are medically unable to work. When you choose this option, you can have the peace of mind that your investments and other assets are protected while you are healing.
3. Understand market volatility.
There is a lot of volatility in the stock market, which is where most, if not all, of your investments will stay. When you invest, it is important to know that your money will fluctuate over time, so do not be afraid of some changes in your statement. Think of the stock market as a long game, rather than as a short term gain. You most likely will not need to access your invested money for quite a while, so let the market run its course.
4. Invest in a professional wardrobe.
Now that you have your first real job, it is time to look the part. Dressing professionally will put you in the right mindset to focus at the job at hand, while impressing your new coworkers and bosses. A great business-appropriate wardrobe is easy to find if you just follow the right steps.
Understanding your body type and find a silhouette that accents your body well. This makes all the difference when you're trying on clothes in the fitting room. You should also be mindful of the workplace culture. Are you working at a place that requires tailored pantsuits every day, or are you working in a more casual environment? The past few years have brought a whole new meaning to business casual for women, so make sure you are open to some new trends when you're shopping. It's also recommended to buy complete outfits instead of statement pieces. Buying an entire outfit together will make it much easier for you to stay organized during those early mornings.
5. Don't be afraid to ask for help.
There's nothing wrong with asking for help when it comes to the stock market! There are financial gurus available at your discretion that can help plan, manage, and monitor your investments with precision and care. The stock market can be daunting, but working with an experienced financial planner will work wonders in the health of your investment funds. Think of working with a professional as the best way to invest, in your investments!
With these tips in mind, your career and investment accounts are on their way to being robust in no time at all.
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