Last week I accused my fellow millennials of not preparing for their financial future. But pointing fingers is easy. So this week, we’ll do something about it. In fact, I have been doing something about it for quite some time.
I started investing 25%+ of my monthly income in January 2015, and have since been growing my money at just under 7% compound annual growth rate.
But I never could’ve done it without the advice of several personal finance books, which are what I’ll draw on this week to present to you: my guide for investing for millennials. I think this is one of the most practical approaches to reach financial freedom.
Of course this isn’t just for millennials, but it does help if you have time on your side. When I look at how I’ve gotten to the point I’m at right now, it breaks down into seven steps:
- Know why you’re saving and investing.
- Set a financial goal.
- Spend less than you earn.
- Create an emergency fund.
- Eliminate your debt.
- Save for a rainy day.
- Grow your money.
Let’s walk through them.