There has been some debate that Millennials are the best generation at making investments. According to the leading names from the financial industry, Millennials are best known for having student loan debt, but they could be the smartest investing class. This means that their generation is making the best use of their finances by using their money more intelligently than other generations.
In terms of personal attributes, Millennials are known for possessing promising qualities to become intelligent and successful investors. Though most Millennials are deep in educational loans, they have certain traits and skills, which makes them great candidates for placing their finances in some of the best possible investment options. Though recent times have been bad for investment purposes because of the recession-era economy, Millennials have been able to navigate their way through and find successful investment opportunities through extensive research, which allowed them to make smarter choices.
Here are a couple of reasons due to which Millennials have become the best investors of their time:
Making Financial Plans
One step towards successfully investing your money is to make financial plans. You would know where your money is being spent and how much return you are going to generate. According to research conducted by the Koski Research in June 2017, about 74% of Millennials were found to have made a financial plan. Of those, 34% had put that plan in writing. In comparison to other generations, only 18% of baby boomers and 21% of Generation Xers had written financial plans.
Hustling While You Can
While Millennials might not be the best at making much money from their primary job, however, a more significant percentage of them have their side hustles going on. This means that they are involved in more activities on the side besides their primary job and are earning extra income for themselves. A report by CareerBuilder showed a decline in the number of people hustling on the side who are 35 and above.
Choosing Wise Health Insurance
While Baby Boomers or Generation Xers have difficulty selecting the right health insurance for themselves, Millennials actively choose better health insurance options, according to the Employee Benefits Research Institute. They do thorough research since they have access to unlimited information and are at the advantage of selecting the right plan for themselves, their coworkers, or their family members. This allows them to save hundreds of dollars over the years, which otherwise can be used for smart investment options.
Millennials Save Better than Boomers and Gen Xers
According to Schwab’s study, there are 31% of boomers and Gen Xers who have their monthly savings goals intact compared to 28% of Millennials. This is a very close difference between the generations, signifying that Millennials realize the importance of savings, one that would last them a couple of months or one that can be used for investment purposes.
Millennials Practice their Plans – They Don’t Forget
More often than not, there will be a moment where your investment may underperform, contradicting with your hopes and investment plans. However, in such scenarios, when Millennials are compared with Gen Xers and Boomers, a study found that Millennials were able to adjust their investment portfolios better than their counterparts. This signifies that they keep some room for a rainy day, which might hurt their finances and investments.
Bottom Line
With the world of information at their disposal, it is only right that Millennials are rising ahead of Boomers and Gen Xers compared to their investments, finances, and stock portfolios. They are naturally savvy to the events taking place around them, which allows them to make much more informed and better decisions logically. Hence, if you are reading this and are a Millennial, you might have the right background and skills to become an all-star investor.
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