The retirement age is moving up! This means that Americans will need to work longer years before they have made enough money to sustain their cost of living. The indication is that the rat race may not have an ending, which, after analyzing recent trends and insights, has shown that this might not work for millennials and Gen-Z. The rat race is the idea that one must work harder to gain capital, keeping in mind that the capital does not reflect the blood, sweat and tears you may have exerted to get the job done. Millennials and Gen-Z are trying to escape this very idea of working hard to get money and live comfortably. One of the main ways to do this is by investing, but interestingly enough, not enough millennials and Gen-Z are doing it, and here’s why.
The number one factor that seems to play a part in our reservations towards investing is fear. The fear of losing money has a way of hindering us from making moves like entering the stock market, getting involved in real estate, trading in the foreign exchange market and more. Emotions also have a role in these reservations, either benefiting or hurting investment decisions. Emotions can cloud our judgment, leading to bad investments made on irrational bias.
Millennials have witnessed a great deal of financial uncertainty and lack of stability in the world of economics. The ongoing coronavirus pandemic and recent engagements between Russia and Ukraine have only added to these recent economic uncertainties.
Still, according to studies conducted by Gallup, 56-percent of Americans own stock, real estate has gained traction for long-term investment and cryptocurrency and non-fungible tokens, also known as NFTs, have made headlines as millennials look for ways to invest in these.
I am here to share some of my findings and the things that I am actively doing to ensure I do not get caught in the rat race, break into the world of finance and most importantly, live on my terms.
A YouTube channel that I have found to be helpful is Investing with Rose. Investing With Rose is a beginner-friendly channel that provides tips, advice and resources for all things investing. The cool thing I like about this channel is that Rose is very diverse in her topics and has a way of breaking information down into bite-size pieces.
Additionally, I have replaced listening to music with listening to podcasts. The GaryVee Audio Experience is by Gary, a serial entrepreneur and social media guru who shares industry knowledge for learners of all skill types. He is known for how innovative and creative he is when it comes to investing and investing strategies. Earn Your Leisure is led by two men who provide a platform for individuals to gain a better understanding of the world of business and finances.
Lastly, I follow news outlets like CNNBusiness, Yahoo Finance and Bloomberg. These outlets provide factual and consistent updates on the world of finance and keep you updated with the economy.
Investing is not an easy task to do, but if done correctly, it can be rewarding. Here are five questions to ask yourself the next time you decide to research a company:
- What do my financial positions look like and do I have an emergency funds account set up?
- What does the company that I am interested in do? What industry of business are they in?
- How does the company that I am interested in make money?
- Historically, how well has the company performed? Is this performance consistent?
- Do I plan to invest long-term or short-term?
I am not a financial advisor or expert. I solely have a passion for educating myself on financial literacy and sharing information with others.