Best Investments For Millennials All Financial Advisors Confirm
There are many myths with regards to millennials and how they manage their finances. We sometimes jump to conclusions that millennials suck at investing and saving for retirement. But if we base it on statistics, it shows that millennials start saving for the future at an early age compared to the boomers and the Generation X.
The data can be misleading since we often see these young adults save their money for coffee and traveling. The study shows that 72% of millennials care more about experiences like outdoor camping than accumulating possessions like clothes.
So what are exactly smart investment moves for these outdoor millennials?
Buying a house is one of the safest forms of investment. Unlike stock, a house can have a more secure value during economic instability. Millennials have been hesitant on buying a house due to high student debt, delay life events such as marriage, and volatile job market. According to U.S. census data, there was a drop of home ownership in the year 2014. But it is slowly regaining its statistics today.
Movable home is a good option for millennials who want to travel with a comfort of home
For millennials who want to travel, a mobile house or towable trailer is also a good investment. Thousands of dollars spent on plane tickets and hotel accommodations will be spared with this more practical buy. With the increasing desire to travel, more and more millennials are looking into buying movable homes.
There are four reasons why we should consider buying properties instead of trendy phones and fashion.
Paying rent is a dead-end spending
Rent payments go straight into the pocket of the landlord, so consider your money gone. Purchasing a house is far more expensive than renting, but mortgage payments are an investment in the future. As the remaining balance on a mortgage is reduced, home equity increases, packing more on our own retirement account. It is better to spend our hard-earned money on long-term plans than short-term expenses that will not provide any value to us.
Buying properties on business capitals such as New York is always going to be a smart move. Metropolitan areas attract more professionals and that is why reselling and leasing properties will not be a problem. Buying in areas where the market is trending up can increase net worth, it can sometimes double the money we bought it for.
Instead of applying for credit cards, why not apply for a mortgage plan instead. Borrowing money to buy a house is seen by banks as a much safer and wiser investment. That is why interest rates are usually lower than our usual credit cards which are usually considered as a financial trap.
Developing healthy interpersonal relationships makes an individual happier
Homeowners are more likely to get involved in the community and develop relationships with other people. Rent owners may not have a chance to develop this kind of relationship since a notion of temporary always cloud their judgments. Aside from interpersonal relationships, young homeowners can develop a sense of pride and accomplishment when they purchase a house.
It is safe to say that having a house can have a great financial impact on the younger generation. But before investing in a house, people must consider their long-term plans first. Buying a house is not for everyone- it is for millennials who can afford to pay the mortgage and who plan on staying in one location until the payments are settled.
Investing money on a more temporary term is for people who are still scared of a long-term commitment.
It is true that millennials are swarmed with too many financial advisors. But we should give credit to the generation trying their best bettering the world and their lives. For other millennials out there, who are still having a hard time figuring out a financial route, don’t worry – it’s normal! Investing can be a daunting path to take, which is why we should always do our homework. Start with baby steps, like saving a portion of the monthly salary. It only needs time before saving money will become our habit instead of spending.
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