Why This Millennial Believes in Investing

Laura Paris By Laura Paris, 7th Sep 2013 | Follow this author | RSS Feed | Short URL http://nut.bz/1rof7ww7/
Posted in Wikinut>Money>Investing

I probably should be a little cynical about the stock market and other ways of investing, but I’m not. As a member of the millennial generation, I haven’t been investing for very long. But I plan to stay become more invested in the stock market and eventually invest in real estate. People in my generation are more upbeat about investing compared to investors over the age of 45.

Investing isn’t just about stocks

When I think of investing, I don’t just think about individual stocks, index funds and mutual funds. I also think about investing in gold and commodities as well as real estate and bonds.
Maybe the reason so many people got turned is because they placed all their eggs in one basket which was Wall Street.

Sinking money into a house

My grandparents recently acquired a few foreclosures in Florida that seemed like a bargain. However, they ended up spending a lot of money to fix up the houses. They had to evict one tenant who didn’t pay his rent for months. Instead of becoming a landlord, I just want to invest in a home that I can live in. I have seen how flipping can be a dangerous bet. At the same time, owning a home is a wise investment for me because I have to live somewhere.

Finding dividend funds

Instead of buying individual stocks, I feel safer investing in index funds, mutual funds or exchange traded funds. As long as it’s a fund and not just one company, I am fine with it. I don’t to risk losing all of my money. One day, I hope the dividends I receive from the various funds will be enough to boost my income so I can have more flexibility and freedom in my life.

Thinking long term

I have always been a long-term thinker, even in the fifth-grade when my teacher handed out the class syllabus. I was already thinking about the end-of-the-year project during the first week of school. I ignore the volatile swings in the stock market and just check my portfolio once every quarter. I know people who trade frequently are playing a losing game.

On the downside, I don’t have a lot of discretionary money or money that I can afford to lose. I am only able to invest about 5 percent of my income at this time. I save another 15 percent of my income for emergencies and for expenses. It’s too bad that most young people don’t earn enough to invest more. By the time I’m making a big salary I might be too skeptical and cynical to invest.

Tags

Generation, Gold, Investing, Real Estate, Stock Portfolio, Wall Street

Meet the author

author avatar Laura Paris
Laura Paris is a journalist who has been writing for more than 20 years on subjects ranging from personal finance and real estate to dieting, gardening and relationships.

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Comments

author avatar Mark Gordon Brown
7th Sep 2013 (#)

For me the best investment was in my own home.

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author avatar Joyce Singha
8th Jul 2014 (#)

Good job.
Actually because you are young, you can easily invest in stocks as you also have the time to to ride its ups and downs. I opened a stock account for my 19 year old. It's a good thing to start young.

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