Quote of the Week: "There are no superheroes, just us. We are the ones wehave been waiting for."~ Shiza Shahid.
Millenials cannot seem to catch a break. Amidst all the criticism for their lifestyle choices they have to figure out how to make and keep money. This guide seeks to show them what they need to do to make their first million.
Have Long- Term Investments
Most people have a hard time thinking of retirement when they are young. However, as most retirees will tell you, time is a non-renewable resource. It is thus unfortunate that most Kenyans are not saving for retirement which is a time proven way of building wealth. This is because it utilises the principal of compound interest to multiply wealth. In addition to pensions, millennials should also diversify their portfolio by investing in stocks and real estate, with a long term view. When you measure success in investments in terms of decades rather than months, you are able to be more patient and hence make wiser choices as you do not have a get rich quick mentality.
There is no replacement for due diligence. When you are investing for the future, it is great to get information from as many varied resources as possible. Studies have shown that most millennials are solely depending on technology (apps) for their financial literacy. While this is okay, it wise to supplement this with the knowledge of experienced financial advisors with a track record of helping people build their wealth. When it comes to wealth building, the more thorough the research the higher the chances of success.
Save In Emergency Funds
Saving for emergencies will shield you from the tough days that will surely come from time to time. Money market funds are especially great for this as you earn interest on even short term savings. These savings will also help you take advantage of the opportunities which may come your way when you least expect them. You also have the added advantage that unforeseen events will not catch you off guard.
Summary ~ In the pursuit of success and happiness, the tried and time-tested principles tend to bring better results though they may seem ineffective in the short term.