It’s never too early to start investing. In fact, starting to invest with small funds even while in college is an excellent choice for future success. Millennials who begin to invest are looking forward to a better financial future. Even if the investments don’t turn out to be as good as hoped, or return negatives, you would still be wiser about handling money.
As a millennial, it’s not smart to bet all you have on one venture. Start investing slowly and safely in a small venture for now, and when you are more financially secure in the future, you can, too, become a high roller. So, here are a number of useful ways millennials can start investing.
Investing begins with savings. Millennials who have managed to save a considerable amount of money, but at a number that is less than about five or six thousand dollars, should consider investing using a fixed deposit. These are one of the safest investment options out there. The returns are low compared to traditional forms of investments, but you are very likely to get positive returns for your investment. Fixed deposits, in a nutshell, are just like savings accounts, except you deposit a lump sum at once and allow it to mature over a two or three year period. You cannot withdraw or deposit money until the FD has reached its cash-in date. Once an FD matures, you can get your funds back to start the cycle once more.
Real Estate Trust Funds
Certain REIT alternatives are a great way for inexperienced millennials to try their luck in the volatile real estate market. Much less risky than the stock market, real estate can either return wonderfully, or you could lose all your money. REITs are companies that own real estate in the forms of commercial or residential properties. Instead of spending large sums on actually buying property, Millennials can get their hands on real estate by buying stocks from these trust funds. This method is less risky and does not require large amounts of capital or lawyers for the most part.
For Millennials with considerable amounts of funds and significant aversion to risk, government bonds are an excellent investment option. They have low interest rates but guaranteed returns. Now, all government bonds are not good, however. For example, a Greek bond right now will cost next to nothing, but your returns are not less likely in the future if the country’s financial situation continues as it is now. German bonds, on the other hand, will be very likely highly lucrative when they mature in two or three years.
Investing in precious metals like gold can protect you during economic downturns when currency loses value. The dollar and gold values are inversely related. So, the best way to invest in gold as a millennial is to buy gold jewelry and store them in a vault. If the markets take a turn for the worst, you will be rich because of your gold.
If you are a Millennial who would like to invest, consider the options given above, and thoroughly research your choice before spending money on it.