The oldest of the millennials are now stepping into their 40s while the youngest is living it up in their 20s. The way they think about money and the implications of money might differ.

However, the overall approach to money management and investing should be guided by a few everlasting principles.

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Raghvendra Nath, Managing Director of Ladderup Wealth Management highlights 4 such principles for millennials:

Start small but start early:

When you are in your youth, the world is your oyster and you have a plethora of opportunities to have fun, grow, and enjoy life. For a generation that firmly believes that ‘YOLO’, investing might not be the first thing that comes to mind.

However, it is important to understand that if you truly want to enjoy your life both today and tomorrow, then you must take small steps towards financially securing your future.

The amount that you invest is not as important as the fact that you must start investing. As long as you take the first few steps, even a small investment that you make can snowball into a substantial corpus over the years.

Invest regularly:

A task half-finished will always be considered unfinished. Once you start your investing journey it is important for you to stay on course and continue investing.

There will always be the development that will compel you to push the investment can down the road. However, if you invest consistently and regularly, you will be able to take advantage of market ups and downs and benefit from the power of compounding.

Even a small break can have a big impact on your investment outcome.

Educate yourself:

Ignorance is never bliss. Your money will always be your responsibility. Investing is not a game of luck or chance. It is serious business, one that requires you to give it some of your time and energy.

The first step toward making sound investment decisions is to educate yourself about the investing landscape and the nuances of the available investment options.

You don’t really need to get into the thick of things, but you should definitely know the basics.

Knowing and understanding simple things like the risks and benefits of different asset classes can go a long way in helping you make the right investment decisions.

Create a financial plan with the help of experts:

In life, every plan and every party are better if you are in the company of friends. However, when it comes to managing your money, you are better off in the hands of experts.

It is always good to consult with a financial advisor who can help you make a financial plan that is customised to fit you.

While your plan should cover your short-term needs, you must also ensure that it covers long-term needs which might not seem that important at the current moment or might not seem obvious.

For example, saving for retirement or creating an emergency corpus or even discussions on creating a will should be a part of your financial plan.

When it comes to making the right investment decisions, every individual needs to focus on their unique risk profile, return requirements, and investment time horizon. However, the above-mentioned principles can serve as a guiding light to every investor.

(Disclaimer: The views/suggestions/advice expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

作者 Ambition