Investments are essential for our future, and it’s also one way we can keep funds during a crisis. However, many are fearful of making investments early on in their careers, thinking that they will spread their funds too thin. This tends to be misplaced fear, simply because there are many reliable investment options right now, even for someone earning minimum wage or a part-time job.
When we talk about investments, we tend to think about the future but also think of risk. Many out there want to play it safe and cash in on their social security and some premiums they might have accumulated throughout the years. However, this isn’t an option, especially for many millennials who want to retire early.
Investments will be your main source of income once you’ve gotten older, and it doesn’t hurt to start now. One of the most reliable options is by opening a high-yield savings account.
High-yield Savings Account
One of the most consistent investments you’ll make is your savings. First, it’s a place where you can put some extra cash for a rainy day. It is one of the most reliable ways you can start investing, given that you’re not planning to withdraw those funds at any time.
A high-yield savings account is an investment that has better yields much later on in your life. It also depends on how much you put in it. It starts with a simple bank account which you can then switch to a high-yield savings account in the future.
Many people wonder if they should be opening a bank account right now early on in their careers. In addition, many are wondering what’s the right way to do it and what the requirements are. If you wonder how to properly open an account in a bank, you can visit some investment sites to guide you through the process. Better yet, a financial advisor can help you start a bank account that can have some good yields in the future. Remember that there is no better investment right now than your savings.
Another option you have for savings is by investing it in U.S. savings bonds. There are two kinds of U.S. savings bonds right now: EE bond and I bond. Generally, it would be wise to invest in EE bonds because they pay interest for over 30 years. However, if you have short-term goals, they also rise at a fixed rate.
I bonds are more consistent in growth but much slower. You get a fixed rate that is always good for short-term investors, but what makes it appealing is that an inflation rate is added to every six years. This means you can get stable returns when compared to EE bonds.
These savings bonds are good options, especially if you want to invest in something early on in your career. They are both safe options that offer little to no risk. We suggest combining a high-yield savings account and savings bonds for a robust early investment portfolio that can have a ridiculous yield in the future.
Stocks are one of the most famous investments that Americans make. It’s found that more than half of the population has a stake in the stock market, making it the most invested option in the country. However, many more are fearful of investing in it. But there is the reliable option in stock and the less reliable option but with higher rewards.
Index funds are where we want you to make your first investments early on in your career. They are a low-risk investment that grows over time, and arguably, they can yield more than a high-yield savings account. Currently, the best index funds to invest in are the Standard and Poor’s (S&D) index funds. They come at a low price with a low expense ratio.
Blue-chip stocks are stocks from individual private companies looking for investors for a small percentage of their company. Generally, this is a very volatile market. However, if you can keep an eye out on it and check for trends, you should be able to make the right decisions along the way. You can also mirror investments made by big investors through investing apps such as Stockpile and Invstr.
The question of whether to invest or not to invest will always be up to you. But know that there are safe options you can make today that will make a huge difference in your future. So maybe it’s time for you to let go of that fear and get into investing.