Investments You Should Be Making NOW!
Today we are going to be talking about the thing that nobody really wants to talk about, but we all need to hear. The thing that we say we’ll always start tomorrow or once we get that new job or the raise or we pay off our car, but then the next excuse shows up at your door. That’s right, kids– we’re talking about investments. Not just investing for your retirement, but also investing for your present. Part of the reason all of you joined this industry is because you wanted some sort of independence and to be your own boss. Accompanied with that is the responsibility to plan, prepare, and save for your present and your future because at the end of the day, nobody is going to do it for you. Learning where to invest your money, time, and energy along with how much of it can be a daunting task to outline, let alone carry out. Luckily, you’ve come to the right place! In this article, we’re going to touch upon a few investment ideas that you should be considering now while you’re young, both for financial and personal growth. Let’s dive right in, shall we?
Investing in Robo Advisors
When it comes to knowing where to delegate your money, investing can be a bit tricky, especially with how quickly a market can turn. Stocks can plummet in a matter of hours while new ones can take off just as rapidly. Here enters the world of Robo Advisors– an online, automated platform that does all of the investing for you! How it works is you provide the funds and the Robo Advisors handle the rest. They build a portfolio for you, reinvest your dividends, offer various tax strategies to minimize your taxable gains, and they even periodically rebalance your portfolio to help you earn and save the most efficiently. Whether you’re looking to build a taxable investment account or a retirement account, specifically IRA’s, Robo Advisors provide a hands-off investing experience at its best. If this sounds like something you may be interested in further exploring, Weathfront and Betterment are two of the largest independent Robo Advisors on the market. Both offer a vast range of investment opportunities and benefits, but don’t just take our word for it. Check them out!
Buy a House
Now, I know how scary this can sound. Putting a couple hundred dollars towards investments a month can seem rather overwhelming, but throwing a few grand into the pot just to get started and then continuing to pay roughly an additional grand a month is a whole new ballgame. Trust me when I say this, if you’re in a position to where you’re working to establish your roots somewhere, invest in a settlement statement, not a lease agreement. The positive side of owning your own home is it allows you to build substantial equity over time. This is achieved through gradually paying down your mortgage and the value of your property increasing, which can be ensure through a little TLC and normal maintenance. Owning a home also provides you with leverage. What we mean by this is since you are able to buy a home with as little as 3% down (or 0% down if you’re working through a VA loan), you can get the benefit of appreciation on a $300,000 house with an out-of-pocket investment of just $9,000. If you purchase a home and literally do nothing more than pay your mortgage bill monthly, over 30 years time, your $9,000 investment has now grown to a $300,000 asset. Not to mention, price appreciation of the property can your return on investment even higher. Though owning financially outweighs the benefits of renting, owning a home is not always for everyone. Before committing to one lifestyle or the other, take some time and do a serious financial analysis to see what’s best for you and where you are at in your life.
Pay Down Your Debt
One of the best investments you can start making while you’re young is to pay off your debt. The average Millennial has roughly around $38,000 is student loans, in addition to a car loan, and more than likely some sort of credit card debt on top of it all. If you do already currently own a home, add your mortgage into that equation, as well. Debt is a scary thing– it’s an entity that you are constantly throwing money at and unless you are paying more than the minimum and more towards your principal, oftentimes it takes years before you can even begin to see a dent start to form in your payments. I’m sure you’re probably thinking; ” I pay x amount towards bills and food and gas and my family every month. How do you expect me to also put money towards investments with my salary?”. Luckily, you have a couple of easy, hands-off solutions you can research that will not only allow you to tackle your debt efficiently, but also still take strides towards your future.
Option one is enroll in Financial Peace University with Dave Ramsey. Through this program, Dave walks you through 7 baby steps you need to take to go from drowning in debt to debt-free. In one of these steps, you will come across what Dave has coined as the ‘Snowball Method’. What this means is you start by paying off your lowest debt first. Whether that be your car loan, a store credit card, a hospital bill, etc. whatever it is, throw any extra money you have towards that debt until it’s paid off, all while continuing to pay the minimum on the rest of your bills. Once you pay off one debt, take the amount of that bill and apply it to your next lowest debt. For example, if your Cosmoprof credit card has a balance of $450 and requires a minimum payment of $60/ month. Pay off you Cosmoprof debt as soon as possible and then apply that $60 that you would typically owe towards your next debt. Once you pay that debt down, take the summation of your first two debts and apply that total to the third and so on and so forth.
Your other option is to use an app that invests your change, such as Acorns. The way Acorns is constructed is every time you use your debit card, Acorns will round your last purchase up to the nearest dollar and put that change into an investment fund. As your change accumulates in the app, Acorns developers will then invest that change into penny stocks for you, overtime growing your investment on virtually next to no money. Your investing money you otherwise wouldn’t even notice was missing. And to top it all off, the app is FREE. All that is needed from you is a sign-up and some loose change. There are similar apps like this out there, but this is one we’ve had personal experience with.
Another benefit to paying off your debit is the boost in your credit score. Even making moves as simple as putting your streaming services or your gas on a credit card (small, easy monthly payments) can help boost your credit score because in the eyes of the credit card company, you’re paying off your bills in a timely manner– you’re a reliable credit holder. If your debt seems immensely overwhelming, start with something like this until your feet catch some traction.
Invest in Yourself
Lastly, take time to invest in yourself and improve your skills. This may seem insignificant or even non-applicable, but truthfully, the income you build for yourself of the course of your career is your single greatest life asset. The more you increase your worth, the more valuable you will be. Aim to invest at least a small amount of time and money in acquiring any skills that could help further you in your career. You may also want to consider looking into obtaining skills that may prepare you for an even higher-paying job or potential career change later on. You know what they say? Dress for the job you want, not the job you have. Same goes for your education– train for the job you want, not the job you have. Investing in CE course, online trainings, or even working towards an associates/ bachelors degree in a related field will just help you stand out from the crowd. This is another example of a little money spent upfront to earn a larger income in the future– the definition of an investment.
Plan to invest at least a small amount of money and time in acquiring any skills you need in your career. You may also think about skills you want to add to prepare you for either a higher-paying job or even for changing careers later on.
Investing and planning for your future can be a scary thing, especially when it’s a skillset you don’t have much experience with. Luckily, there are people who can do it for you and not all investment involve dealing with stocks, bonds, and REITs. Everyone has different life and financial goals and different paths to help get you there. Take some time and find out what yours is, but just remember, you are your own greatest asset and you should ALWAYS trust to invest in yourself. If you’re ready to take that next step and start investing in your future, check us out and see how we can help get you started in your beauty career.