Graduation ceremonies are unfolding across the nation. How can young investors start building wealth when beginning new jobs and starting their careers? I have connected with people from all walks of life in my Coffeehouse Investor journey. Here are a few wealth-building “secrets” these investors have shared with me over the years:
- Save more than you spend and start now. Remind your graduates of the incredible power of compounding whether it be in a workplace retirement plan, an IRA, or an investment account.
- Up your career. The real benefit of moving up your career ladder is not necessarily in the potential for increased saving, it is in taking your essential creativity to the next level. Learning doesn’t have to stop at graduation. Online degrees are available for anyone intent on growing their knowledge and sharing that wisdom with the world.
- Start a business. At the very least, start daydreaming about your business while you have your day job. It redirects your mental energy away from thinking you will get rich on Bitcoin and hot meme stocks, and toward something that might allow you to build wealth far beyond what your workplace retirement plan offers.
Trading platforms capture young investors’ attention with their versions of bells and whistles - commission-free trades, fractional share ownership, and cryptocurrencies. True wealth isn’t made with meme stocks.
True wealth is made by following the principles of the Coffeehouse Investor. The best part of these principles? They are in your complete control.
- There is no such thing as a free lunch. Maximize your returns through index and passively managed funds.
- Don’t put all your eggs in one basket. Proper diversification between stocks, bonds and real estate should reflect your need and ability to take risk.
- Save for a rainy day. Establish clarity with your saving target by establishing a financial plan.
Let us show them the way.