17 Feb A Millennial’s Guide to Building Funds
Say you have an extra cash and being the matured, responsible new working adult that you are, you decided to save this.
However, if you just deposit this in the bank, you know too well it won’t grow as much because of the minimal interest on deposits. You read it online, you occasionally see it in the news—if you want to ultimately grow your funds, investment/property investments and stocks are the way to go.
Consulting a finance professional is a smart step. Initially, you will be asked what are your goals. Of course, your ultimate goal is to build and grow your funds by investing. You will then be offered an investment + insurance plan. Depending on the proposal, this finance professional will show your projected earnings in the next, say 10 years. You will learn that the first few years, your initial premium will be spent on insurance and protection benefits. According to your agent, it’s wise to insure yourself first so that in case of hospitalization or death in the future, your beneficiaries (in this case they could be your family) have something to receive. I’m a finance broker myself and I’m not saying that’s wrong. In fact, that’s a good proposal if and only if you are investing for your and your family’s future.
You are a young professional starting to build your funds, insurance is good for safety net purposes, however, it is best for you to prioritise to earn in such a way that your funds will maximise its earning, the product that the agent offers does not align with your purpose.
In a financial pyramid, this is the guide I show my clients:
In as much as you want to agree with the proposal, if 1, 2, and 3 are not yet fulfilled, don’t sign up just yet. As a young professional who just joined the workforce, establish your finances well. Millenials today have the tendency to be impulsive but I also believe some have the ability to be critical especially when it comes to money matters. It just doesn’t make sense that you are preparing what you can leave to your family (insurance) without actually preparing how you are going to live (basic, emergency funds, savings.)
First, determine how much money you can set aside a month for investment. Second, look for an investment outlet. There are a lot of competitive deals in the market which I’m happy to introduce you to. Feel free to shoot me a message or call me. 🙂
Your full financial needs and requirements need to be assessed prior to any offer or acceptance of a loan product.
Credit Representative (486927) is authorised under Australian Credit Licence 389328.