Five Financial Tips For Younger Investors - 2022 and Beyond

By Mike Bischoff, CFP

1. Get back into the job market and always search for better opportunities
The pandemic has led to millions of unemployed young Americans. Whether you are just getting back into the job market or looking for better opportunities, now is an excellent time to be on the hunt for job advancement. In many cases, your next job can include higher wages, advances, more employee benefits, company incentives and bonuses.


2. Take financial inventory and utilize your bank services
There are so many ways to maximize the money that you’re already earning and saving. Budgeting is complex, and not always fun, but it is doable. You can simply start by transferring money out of your checking account into an investment account for growth.


3. Tackle financial literacy
Unfortunately, taking personal finance literacy classes is not a requirement in high school or college. To remedy that, you should take the time required to dive into how finances work. The ball is in your court to set financial goals and starting early in life is very important.


4. Set short term goals
Segmenting your budget becomes much clearer when you know what you want out of your finances. When you reflect on what you want to achieve, consider things like improving your credit score, paying off debt, setting up an emergency fund or tracking your monthly spending.


5. Invest in a Roth IRA
We have helped many young people set up Roth IRAs in the past couple years. If you don’t have one, it is time to start one. Compounding tax free growth is magical for a young person’s future.

 

Making financial resolutions and executing best practices to improve your situation is a great way to start the New Year!