Sullivan Anderson 
“The best time to start investing your money was 20 years ago. The second best time is now,” is advice that is echoed through the mouths of investment gurus, far and wide. As a young adult, the money we earn can be mishandled very easily, if we are not careful. Building smart habits with your money is important.
There is so much talk about investing, but what is the hype behind it? Here are some basics you should know:
- Investing can be done in different ways.
The first thing people consider is investing in the stock market, but there are three main ways to invest: stocks, real estate, and small businesses. People of all economic backgrounds can invest; you just need capital to start. Stocks require the smallest amount of capital to begin with. You need as little as $1 to start. Investing in real estate and small businesses require more capital, but the returns are great.
- Opening your account can be as easy as one-two-three.
There are a few different platforms that stocks can be bought on: Robinhood, J.P. Morgan, and SoFi, to name a few. Fidelity even has a platform, Fidelity Go, where they decide where to invest your money for yourself. You simply invest the money continuously. They even have a platform where you can invest automatically from your paycheck.
- Expect to invest continually for a minimum of five years.
Investing should be done with the expectation of maintaining them for a minimum of five years. Ownership investments are more risky, so you won’t see returns immediately; however, don’t get discouraged. You’re in this for the long haul.
- Expect returns of 9-10% annually, depending on how risky your tolerance is.
As said before, investing should be done continuously on a long term basis, with the expectation that the money stays in place for a long period of time. This means that you should be prepared to maintain a low liquidity, or ability to attain your money in a short period of time, in order to be successful.
- Change your mindset around investing.
Know that the only thing that is stopping you from investing, if you haven’t started already, is you. Build your mindset to value long term investments over short-term, temporary satisfaction. Your future self will thank you.
All in all, investing places a lot of importance on your future self. There is ample information out there to educate yourself, and make financial stability (and wealth) your reality. Don’t wait! You got this.
By Sullivan Anderson, North Carolina A&T State University Alumna
Instagram: @SullivanGrace_
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