Millennials make up the largest segment of the labor force, with millions of millennials working today. However, younger generations are also entering the working world.
The right investments can help young people prepare for the future. Below, you’ll find key services that younger adults should consider using.
1. Retirement Savings
For young people, retirement can feel as though it’s a lifetime away. However, it’s never too early to start saving for retirement. The sooner you start saving, the more time you’ll have to grow your retirement fund.
It’s best to have a diverse investment portfolio. Employer-sponsored plans, like a 401-K, can be an excellent place to get started. It’s also a good idea to look into equities, like mutual funds.
2. Legal Help
When young adults have legal trouble, they shouldn’t hesitate to hire a lawyer. A study conducted by Morris Hoffman found that people that use public defenders are more likely to serve jail time and receive longer sentences on average.
While hiring a private attorney may seem like a big expense, it’s more than worth the cost. The outcome of a criminal case can have a lasting impact on your life. It’s wise to spend money that will help you reach a better outcome.
3. Emergency Funds
It’s not always possible to anticipate emergencies, but young people can make sure they set aside money to cover unanticipated expenses. Ideally, you should try to set aside at least three months of income. If you suddenly lose your job or run into another major expense, you’ll be able to use those funds to stay afloat.
Building an emergency fund might seem challenging, but young people should keep in mind that this is something they can work on over time. If they put a small amount of money into an emergency fund with each paycheck, they’ll eventually have savings that they’ll be able to use in an emergency. Some people find it helpful to automate savings so that they don’t forget to set money aside.
4. Medical Care
Most young people are healthy, but that doesn’t mean they’ll stay that way forever. Regular medical care is the best way for young adults to keep themselves healthy as they age. It’s easy to treat many serious health conditions if they’re caught in the early stages.
Thankfully, young adults have a wide range of options when it comes to medical care. Having access to telemedicine is important to 40% of millennials. That’s why a growing number of doctors are offering this service.
5. Home Ownership
Owning a home is one of the most effective ways to build generational wealth. Homeownership is a low-risk investment that can benefit adults throughout their lives. Instead of spending money on rent, young people can put funds towards a valuable asset.
It can be tough to cover the cost of a down payment, but there are numerous options available to people seeking a home loan. An FHA loan has lower down payment requirements than a standard loan, which makes it a good choice for first-time buyers. Fannie Mae and Freddie Mac loans are also worth exploring.
Young people that are ready to buy a home should focus on finding the right property for their needs. Lawns are a feature that 49% of people in the U.S. look for when buying a home.
First-time buyers may have a better experience if they work with a realtor. A real estate agent can walk them through the process and help them to find properties that are in line with their needs and budgets. The guidance that a realtor provides can be very valuable to people that don’t have much experience with the real estate market.
People that are young have their whole lives ahead of them, but that doesn’t mean they shouldn’t be planning for the future. By looking ahead, young adults can make sure they’re ready for future challenges.