For many young adults, the notion of investing for short and long-term goals is a scary one, simply because this is such unfamiliar territory. But thinking about investing doesn’t have to feel like studying a foreign language. There are plenty of everyday expenses worth saving for and many great reasons for young investors to set money aside.
Buying a Home
The American Dream has always started with home ownership. It’s important to think about home buying as an investment. In spite of cyclical highs and lows in the market, real estate has historically proven to be an excellent long-term investment. Looking for cheap insurance and utility expenses makes this investment more affordable.
Whether you’re putting yourself through school or saving up to do it for your kids, college is a worthy financial investment because countless studies have revealed that college graduates have better luck with the job market and command higher salaries over the course of their careers. The upfront expense of tuition and books will pay off in the long run.
Paying for Your Wedding
A couple’s wedding day is one of the high points of their lives together. It’s also an event that requires some serious financial planning. It is great to set a wedding date at least a year ahead of time, in order to not only plan all the important details, but also to raise the cash needed to pay for it all. Invest wisely and don’t get saddled with wedding debt when you get hitched.
Vacations and business travel are often enjoyable and rewarding, but they can be very expensive as well. It is useful to think about travel in investment terms. Looking for the best value in a plane ticket and hotel fare, for example, helps you get the best return on investment. Saving ahead of time, once again, is very important, because smart investors are sure to balance out their expenditures with their income. A strong yielding portfolio can help make stress-free vacations possible.
Buying a Car
Car payments and car insurance are an unavoidable part of the financial picture for most young people. But this doesn’t mean you have to be resigned to overpaying. Research financial institutions to find the lowest loan rates, and compare car insurance providers to see which ones can furnish cheap insurance you can count on to protect you and your investment in the vehicle.
This notion of cheap insurance also applies to medical expenses. Over time, medical care gets more and more expensive, and it becomes ever more important to have quality affordable coverage. Compare several providers and find the right plan to help you control these costs.
It’s impossible to categorize all the different areas that young people need to target in their investment activity. It’s easy for unexpected expenses to derail an investment strategy. Factor in a little bit for rainy-day expenses and make sure you’re ready if unexpected costs or opportunities to invest arise.