Building wealth in your 40s can be one of the most lucrative times. Most people…
According to a study conducted by the Australian Stock Exchange, 24% of people who have invested over the past two years are aged 18-24. These young people have a high interest in investing and managing their money. If you are an experienced investor who wants advice about investing for young people, you’ve come to the right place.
According to the same study, inexperienced investors avoid making financial decisions, aware of their inexperience. If you are also an amateur investor and want advice about investing for young people, don’t worry; we’ll handle that too!
1. Track Your Spending
Money is not a tangible object. This makes it difficult to give it the value it deserves. It would be best to see that when your money has been spent, know where you have spent it, and understand what you have bought.
The first step and most underrated investment advice is tracking your spending. This is particularly important for young people; It is easy to spend more than what you earn on unnecessary things, such as apps, clothes, and entertainment. By tracking your spending, you will become more aware of your financial situation, needs, and expectations.
2. Know the Types of Investments
Investing can be very beneficial. But if you don’t choose a suitable investment, you can lose some or all of your money. There are many different types of investments. With some of them, you can expect an inevitable return over time. But it is important to understand that not all investments are guaranteed.
When you invest in a company, they invest your money in initiatives such as laboratories, technology, research, and development. They expect a return on their investment, but they cannot guarantee anything.
3. Avoid Unnecessary Debt
As a young person, you may have credit card debt… you likely have credit card debt. If you have other debts, such as a car loan or a loan with your university, you are accumulating debt. Remember that debt is not the same as investing. Investing is always a good thing – but debt is not.
You repay your debt by paying a certain sum of money every month. Usually, the payment is not lower than the interest payments. You should avoid getting a loan where possible. If you want something, save up for it instead – this is the only way to ensure that you will not accumulate debt.
4. Prioritise Your Superannuation
If you are a young person, you probably haven’t had the chance to develop a complex plan for your money and your financial situation is likely to change a lot over the years. There are many reasons why you should consider investing in superannuation.
Superannuation is one of the best investments you can make for your long-term future and retirement. It is an excellent way to get a better financial situation. Small investments early can make a big benefit in the long run thanks to compounding so the sooner you start the better!
5. Seek Professional Advice
It’s good to get professional advice when your situation is complex. If you have had a certain financial situation, you may have gotten the wrong advice before. But the more you learn, the easier it will be to make the right decisions. As our lives change, it’s important to change how you invest. A simple rule is to invest more when older and have more disposable income.
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Young people should invest. But it is essential to be aware that investing is different from spending. These are the steps you should take if you are an inexperienced investor and want to invest as a young person. Of course, you should get professional advice.
At Coastal Advice Port Macquarie, we guide our clients to live their best life by delivering personalised financial advice. We understand that living in Port Macquarie allows families and retirees to enjoy a relaxing, rewarding lifestyle. We also believe that everybody deserves access to quality financial advice to have peace of mind and achieve financial security. If you need financial planning services, we’ve got you covered! Get in touch with us today and let us know how we can help!
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