Become financially secure at a young age so you can afford
to participate in memorable life experiences and enjoy the
comfort of knowing that you are financially secure.
A recent study by the Government Accountability Office
(GAO) predicts that one out of every three workers will
have nothing ($0) saved in a 401k style account by 2050.
This statistic is supported by the National Association of
State Boards of Education's report that states 'most
workers aren't participating sufficiently enough to allow
comfortable retirement'.
Many people are aware that they need to start saving for
their future; however most people have no idea where to
start or how much they will need. With uncertain economic
times it is now more important than ever that today's youth
start investing young. That means giving practical
financial education skills to young adults early in life so
they can achieve financial security.
Plan for Financial Security while Your Young.
Retirement is a long way off for people under 30; however
this is a critical time to secure your financial future.
The sooner young adults invest the easier it will be for
them to achieve financial security. This frees them so
they can experience life more fully. These simple lessons
will have you on the road financial security and, as
equally important, will allow you to fully enjoy life now.
1) Invest early - The earlier you get your money working
for you the sooner and easier you will have financial
security. By investing young you are able to harness the
power of compounding interest.
'Compounding interest' is simply earning money from the
profits of your investments. So you're making money off
money you did not have to work for. This offers young
adults a tremendous advantage. In fact, investing as
little as $100 per month starting at age 18 could make you
a millionaire well before you reach retirement age. Plus
it will give you the ability to afford and fully experience
life during the process.
2) Investment consistency - Investing on a consistent basis
will allow you to generate long-term gains over time. For
most, simplicity equals consistency; and consistency over
time leads to financial security. Start to follow a
consistent investment plan now; then as your investment
knowledge grows you can add other forms of high-return
investments.
3) Diversification - Diversification lowers risk. If you
have all your money invested in the stock market, and the
market crashes, you could potentially loose a lot of money.
Now if you had a portion of your money invested in stocks,
some in real estate, some in businesses and some in other
alternative investments - if any one of the markets
corrects itself, you wouldn't get hit as hard since you're
diversified.
4) Tax benefit vehicles - Use investment vehicles that give
you tax benefits. Many people don't realize about 40% of
your income goes to pay taxes. So by choosing an
investment vehicle like an IRA may help to keep more money
in your pocket.
So the key to young adult financial security is following
simple, consistent investment strategies starting at a
young age. Being diversified and using investment vehicles
that provide tax benefits will help to supercharge your
returns. Get started now because you'll be able to afford
the things you want now and in the future.
----------------------------------------------------
Vince Shorb, creator of the multi-media course 'Financially
Free by 30' and young America's success coach, provides
young adults with real world money advice so they can
achieve financial security at a young age. Visit
http://www.FreeBy30.com for his exclusive free video course.
