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Stay Safe With Any Investment You Make

Investing is something that everyone should start considering at a certain stage in their life. It’s not enough to just be a saver. You need to think about how to quickly increase your finances. At the same time however, you need to make sure that you’re safe when investing. You never want to be in a position where you could lose more money than you can afford. That’s why we’re here to offer some great tips that you’ll want to consider when investing your cash. Read more

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Personal Finance: Save Today to Invest in Your Future

Young people just getting started out often fail to recognize the huge earning potential they have by saving today in order to invest in their futures. There are so many things you can do to cut down on what you are spending so that you have extra money to invest with the intent of growing that money into a tidy nest egg. Looking for some innovative ways to save today to invest in your future? Here are a few ideas.

Do You Really Need that New Car?

Actually, a new car is just an example of all the things we buy when they aren’t really needed. Yes, it would be nice to have the latest sports car on the lot and it sure would be cool to own the latest upgrade to that gaming system. However, do you really need it? One of the easiest ways to spend more money than you have to spend is in getting the next, best thing on the market.

Try asking yourself if what you have is serving you well. Is there any advantage to buying a newer model? Obviously if your tranny just dropped out of your vehicle you probably need a new one, but just to keep up with trends is another matter altogether. Think before you buy.

Comparison Shop for Deals Wherever Possible

Another bad habit many people get into is in failing to do comparison shopping to find better deals or better rates. One of the most neglected comparison shopping techniques is to go online to shop for better utility rates. Many people still aren’t aware of the fact that government deregulated utilities a long, long time ago which means that you may not be locked into the rates you are currently paying. Texas is one state that offers cheaper energy because there are a number of suppliers that have agreements in your area of the state. You can get info online in regards to the suppliers available in your area and the rates and services each offers with their current promotions.

What to Do with the Money You’ve Saved

At the end of each year, after you’ve filed your tax return, take any money left to invest according to the amount you have available. If it’s a significant number, you can buy stocks and/or bonds, but if you only have a small amount, you might be better off buying something called a penny stock. It all depends on the amount you have available and the amount of risk you are willing to carry, but in any event, do invest in your future now.

One final piece of advice about investing in your future is probably called for here. Just as you are advised to take it easy on spending, it is also wise to take it easy on investing. Start slowly with small amounts and do your research. Never rely on the word of a broker, no matter how reputable, unless you fully understand what you are investing in. This has proven to be a huge mistake for a great number of investors in the past and a mistake you can learn from. Invest just as frugally as you spend until you know what you are doing. In the end, the loss is yours just as the gain would be, so take it one step at a time.

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Millennials Are Starting to Invest Their Money & Technology Is Helping

Between new regulations and advancements in technology, millennials are starting to invest their money, especially as they make progress paying off their student loans. It will take some time for this generation to build confidence in investing, however, and it’s easy to see why — they’ve lived through the worst financial crisis in recent history, and this group has more debt than boomers and Gen Xers combined, according to a TechCrunch report. Despite the debt and notions that “stock are for old people,” millennials are giving it a try. Today, technology seems to be the key to winning young people over.

Where Are Young People Investing?

Data from TD Ameritrade shows that 38 percent of the company’s new accounts belong to millennials. But where are these young people investing their assets? Millennials are typically investing in individual stocks. In a survey of 1,600 people, the five most popular stocks to invest in included Facebook, Tesla Motors, Amazon, Netflix and Apple. Managing director at TD Ameritrade, Nicole Sherrod, told The Motley Fool that millennials prefer to invest with familiar companies and brands that they have seen during everyday life.

Since millennials grew up with the Internet and a surplus of technology, it’s no surprise to see that a large number of young people are investing in tech-driven companies. This style of investing is far different from traditional methods. The aforementioned companies are not low-risk. Traditional investors seek out stable companies with growing dividends and predictable earnings.

Why Crowdfunding?

Millennials have been the early adopters of such crowdfunding platforms as Kickstarter and GoFundMe. Young people can choose to support tech startups, small businesses or e-commerce companies with ease, investing in others, putting their money where their passion is, whatever that passion may be. Not only is it easy to navigate these platforms, crowdfunding does not require a large chunk of change to get started.

It’s no coincidence that crowdfunding’s rise coincides with that of mobile technology, either. Look at the cell phones available from T-Mobile, for example — with a variety of options available for a range of credit scores, it’s easy for millennials to stay on top of their investments. Crowdfunding, compared to traditional investment practices, makes investing money both easy and attainable.

Where Do They Get Stock Tips?

Most young people don’t have access to a network of stock analysts or a big financial team. New types of investing tools are taking over, and these tools are available to everyone online. Millennials use social media in their day-to-day lives. But social platforms aren’t just great for sharing photos or asking friends advice on a good place to eat. Young people are flocking to social networking sites for financial advice. While in some cases this may be good, receiving advice from friends, or non-experts online, can backfire. A social investing platform like Betterment can help anyone make smart investment decisions. The investment tool offers advice from an experienced team of experts, information and even automated investing services, taking the headaches out of traditional investing.

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How Can Lower Income Employees Invest in the Stock Market?

No matter how much or how little money you make, it is never too early to start saving for your future. The sooner you get started with your investment plan, the larger your nest egg can grow. While putting money aside is particularly hard for those earning substandard wages, minimum wage workers have a number of investment vehicles at their disposal.

Invest in Your 401k Plan: If you work for an employer who offers a 401k program, participating in that plan can give you exposure to the stock market. Even if you invest only 1 or 2 percent of your income, that is better than nothing. Investing even a small amount can instill the discipline it will take to build a nest egg going forward and allow you to put more money aside as you begin to earn more. If your employer matches part of your 401k contributions, strive to raise your contribution percentage until you are earning the full company match. Read more