Millennial Millionaires | New Ways of Financial Planning
So, how to become a millionaire? Find your calling and focus on the path that reveals itself, because energy flows where attention goes.
Financial advisors are challenged by millennial investors who are not really trusting the financial markets after already experiencing two major bear markets; the first one in 2000, the tech bubble, and then again in 2008 when the global financial crisis jolted the markets resulting in a change of financial planning strategies.
Millennials demand transparency and easy to understand products to help them get to their desired level of wealth. This generation is not rushing to the altar and isn’t having children immediately either, which in turn also delays the purchase of an own home. They are also more aware that they must save a good amount of money for retirement to be able to lead a comfortable life and afford the finer things in life. Starting with investing the maximum amounts allowed in their employer sponsored 401(k) accounts, Millennials are known to save substantial amounts of money early on thus building an investment fund that leads to financial freedom down the road.
Another fact is that Millennials are more likely to become entrepreneurs after finishing their formal education rather than working for a company. Regardless of being employed or starting their own business, there is a set of rules Millennials have learned to apply in order to accumulate the desired level of wealth. One of these rules is to not sell themselves short. In other words get paid what they are worth. Another alternative to becoming wealthy sooner rather than later is to develop multiple streams of income. They say that the average millionaire has 7 streams of income. That may sound like a lot but the millennial generation is a different breed. Raised with constantly evolving electronics, the cellphone is their office and that provides various opportunities to make money. Jobs on the side are generally related to what the individual may be passionate about and with that they have found their calling. This kind of entrepreneurship leads them to do what they love with lines blurred between work and passion, which for that reason generally leads to wildly successful business ventures.
In addition to holding a regular job, today’s 20 to 35 year olds are poised to start their own business on the side first, which will eventually allow them to quit their job and fully transition into their dream business. You know the saying: “Do what you love and you’ll never work another day.”
Due to the two past financial market disasters during their lifetime, Millennials learned to consider safer investments, investing in what they know well, with the added advice of their trusted financial planner. One of those investments is ETFs or Exchange Traded Funds.
Exchange-traded funds are one of the most valuable products created for individual investors in recent years. If used wisely, ETFs are an excellent tool to achieve the desired investment goals. An investment advisor at a reputable and regulated investment bank can guide investors accordingly. So, how to become a millionaire? Find your calling and focus on the path that reveals itself, because energy flows where attention goes. And don’t forget to save as much as you can. Willpower and self-discipline made in younger years will pay off handsomely down the road.
Header photo courtesy of Joshua K. Jackson