Millennials and Money Essays - Economy, Finance, Money,

Millennials and Money In today's world, most millennials in America have either attended public school, or they are in public school. The norm is that, after graduation, they would go on to college to further their education and advance in their dream career. Many millennials think the key to financial success is high academic performance, but really the key to financial success is learning and practicing financial literacy. Financial literacy is being educated on how money works. One may ask what money is:moneyis any verifiable record that is generally accepted as payment for goods and services; itis a medium of exchange for value. So, for money to work; one must know how to grow, manage and invest money wisely. Many millennials think getting a job with good pay and a fixed income is financial success, but soon they are challenge with the fact that their income is only coming though one source and if they become unemployed then they are in deep financial trouble. To truly have financial success you must have at least four sources of passive income, money that works for you. Wealthy people have assets that bring income, such as real estate, bonds, forex, stock, commodities, and derivatives. They also understand the difference between an asset and a liability. Assets put money in one's pocket, while liability takes money away from an individual. For example: leasing a house is a liability because it takes money from an individual, but owning a franchise is an asset because it puts money into a person's pocket. Money can bring Power, Freedom, and Security. Since these three things cannot be seen nor heard, this means being financially successful is really a mindset. To be financially free, you must first learn and practices these five traits.First you must control your expenses, especially by limiting your purchase on things that you want and only buy things you need so you can save one-tenth of your income for investments. Secondly,focus on profitable investments. Invest in something that is reasonable for you do not start putting your money in things you know nothing about or else you may lose everything. Thirdly,guard your investments from loss, by understanding how much risk you are taking before you invest. This is so important because, you will know your chances of profiting or losing it all. Most millennials who invest in stocks insure their investments by hedging it, and millennials who invest in properties normally put it under a cooperation's name, so that if the investment goes wrong, they will not be personally liable to their creditors. Fourthly insure a future income: when you are old, it is harder to find a job or even being able work. It is important to have passive income so that you and your family will not have to worry about how to pay the bills, instead you live financially free. Lastly, increase your ability to earn: do not spend all your profits from your investment on liabilities, instead use twenty percent of the profits to invest in more assets. This is how you multiply your wealth. I began investing though laying this virtual stock market game by myself, at first it was hard finding the perfect stock to invest my money, plus, I had to develop a strategy that shows me how long I will keep the stock; how much money to put in, and my backup plan just in case something fails. Even though it is fake money, I am practicing, so that when it is time to go live, I am prepared for it. To achieve my own financial success in ten years time, my dream is to invest in stock, commodities, derivatives, real estate, and mainly start my own private equity fund operating companies through leveraged buyout, venture capital, and growth capital. With the help of this scholarship I will further achieve my goals majoring in finance and teaching millennials about financial literacy.