The majority of millennials are unaware of the wealth-building investment tools available to them. Most people are aware that they should be saving money, but they have never been taught how to do so properly. Some people keep all of their money in a savings account because they are frightened of losing money in the stock market, while others invest in specific stocks they haven’t examined because a family friend recommended them. They urgently need a reliable guide to investing.  Almost no one has thought about making a financial plan for their future. Investing for millennials is very different than for others, are here are some investment strategies to help you get started:

Step 1: The Investor’s Mindset

The most common error people make while investing as a youth is allowing their fear of losing money to drive them to lose money. While this may seem counterintuitive, it occurs frequently. Because we’re investing for the future, we need to think long term. The quickest way to lose money is to panic and sell when the market falls, then buy back in at a loss when the market rises. When you hear about it, it may seem stupid, but the first time you see one of your investments plummet, you’ll realise how strong the fear of losing additional money can be in motivating you to sell. This phenomenon affects both new investors and hedge fund millionaires.

You don’t have to worry about short-term swings if you’re only buying relatively secure investments like the S&P 500 index because you know your investment will increase in the long run. The best method to avoid worrying about your investing account is to think of it as a non-returnable fund. Once you deposit funds into your investing account, they will remain there for the foreseeable future, working hard to generate passive income for you.

Step 2: Make a Strategy

Some aspects of investing for millennials follow the golden rule – always have a good investment strategy. Every investor requires a well-thought-out strategy. Examine your pay and current costs, and determine a sensible monthly investment goal. When you invest this money, keep in mind that it will only be utilised for investment for at least the next 20 years. Every dollar you put into your investment works around the clock to increase your earnings. This money is my personal business, and it is helping me save for retirement. Before I can do anything else, I need to put money into my business every month. That is an advantage that one must exploit while investing as a youth.

Step 3: Make your first investment

Congratulations! You’ve just made your first financial commitment. You’ve made your first steps into the world of investment. You can expect an 8 percent return on your investment over the long term. That does not imply that your investment will grow at an annual rate of 8%. Some years will see significant improvements, while others will see significant losses. The most important thing an investor can do is not sell when the market falls. The best investment tip you will get is this – If the market falls, don’t sell! When the stock market falls, smart investors buy more. Keep investing the same amount every month, and your investment will grow as your consistency grows.

What about other assets? Real Estate?

Purchasing a home can be one of the best or worst investment strategies a person can make. Buying a property you can’t afford might eat up nearly all of your income in mortgage and upkeep payments. There’s no assurance you’ll be able to sell your property for more than you purchased for it, and even if you do, the 6% realtor costs will cause you to lose money. When you consider the maintenance and interest expenditures on your mortgage, the average property appreciates 2% each year, which is a pitiful return.

Investing for millennials is however not as easy as it sounds. The internet has a plethora of information on investment tips and tricks. But it is an art that requires patience and experience. Once you are ready to begin your journey, FinLearn Academy has the best guide to investing.