The Mistakes Millennials Often Make:
Millennials have some major financial hurdles to overcome, especially massive student loan debts. Sometimes they can’t find jobs, they worry about not having enough money to eat and getting the bills paid. Therefore, the idea of saving money for the future and what the best investments are can be tough. Despite those challenges, dream of enjoying a more comfortable tomorrow to avoid the mistakes most millennials often make.
Not Taking Advantage of 401(k) Funds Matching
If your employer offers to chip in as much as you do that you put into a 401K retirement plan, you have an opportunity to grow your retirement savings. Failing to take advantage of that opportunity is like turning down free money much faster. Be wise and avoid this kind of mistake that most millennials often make.
Choosing the Wrong Real Estate Agent
There are many mistakes you will want to avoid that millennials often make when buying or selling real estate. Topping the list of the most significant mistakes in investments that some millennials make is choosing the wrong real estate agent. There are disastrous consequences: you can lose your huge sums of money, waste your time, and even open you up to legal liabilities.
Daniel and Abigail were excited to find a home in Sherman Oaks, California. The home had fire damage in two of the bedrooms; their real estate agent advised them to immediately place an offer to pay all closing costs. In the end, they lost out on the home because another couple was willing to offer more than the asking price. They purchased the home and flipped it less than a year later for a higher price.
Investing Before Paying Off High-Interest Debts
Any debt that accrues interest should be paid before you make investments. This could include tax debts you owe to the IRS; a related mistake that millennials often make and must avoid paying in the wrong order.
Jumping in with Only Superficial Knowledge
Also, avoid the same mistakes that millennials often make, including investing in Apple, Facebook, and Amazon. As a millennial you might own an iPad; that doesn’t mean it’s wise to immediately purchase stock in Apple. Without researching the current market buying a stock without knowing much isn’t exactly a sound investment strategy. Before you invest in any company, look for top executives dumping their shares of the stock in a maybe not-so-lucrative direction.
Not Making Any Investments at All
For many millennials, it can be tough to put aside cash every month when you have bills and student loans to pay. Avoid the mistakes millennials often make, like not investing entirely on anything at all. Making an effort to invest even a small amount will make a huge difference in the long-term. Investing $50 per month can result in a long-term accumulated wealth of $40,000 – $68,000 in thirty years. This will not be enough but it beats having a long-term savings of zero.
Avoid making any of these common investing mistakes that millennials often make to improve your financial game plan. Creat an action-plan to change your current money management strategies to increase your wealth and ensure your future prosperity.
