Before you read this any further, I have excellent financial advice that you are going to want to hear. If you are under 30 years old, this is *specifically for you.
First things first – who am I and why do I think I have the merit to speak on this. I am a 25 year old HS Business Teacher with a Business and Personal Finance Certification, I am 4 classes away from an MBA, I minored in General Business, I own a company and have owned two others before this one.
To be quite honest with you, I don’t have a ton of cash to my name – if I did I would’ve spent it on a down payment for a rental home months ago. I have a baby girl on the way, and really only one thing has been on my mind lately.
How can I get her as much money as possible in the next 18 years?
Great question! I don’t know the answer to it.
I do know, however, how to find out ways to learn the answer.
Do. Your. Research.
Stop scrolling through IG for a minute and open up investopedia.com. Haven’t heard of it before? Here is your intro – click on the link.
Log out of Netflix and listen to Dave Ramsey instead.
I can’t sit here and tell you the best options to purchase or how to identify the best home deeds to purchase in rundown neighborhoods.
What I can tell you though, is that you need to start learning this stuff. You need to start taking your finances and your financial position seriously.
As I mentioned, this article is mostly for those around my age – under 30. Our generation needs to do a much better job of going out on our own and learning, doing, and winning. Take strides right now that move you closer to where you want to be, and further away from everybody else.
If you don’t keep up with the market and the national economy you really should, because there is money to be made out there and if you don’t take advantage, you will be extremely upset with yourself in 10-20 years.
Recently the market has taken a slight hit, and has dropped a little bit. When this happens investors get nervous and do one of two things – they sell everything they have to limit their losses, or they buy more to try and take advantage of the low prices.
When prices drop and everyone buys, what happens to the value of the company? It goes up, because more people bought in to it. Now where is the price? High again, right?
You can see this is how the natural flow of the market occurs. When something happens that scares everyone or excites everyone, things tend to overreact – for better, or worse. Prices can go up and everything can be extremely valuable, or prices can drop and the entire NYSE can seem like a dumpster fire from a distance.
The Dow Jones tracks 30 large American companies, and responds based off of their respective performances. In the last few weeks it has dropped, and continued to drop.
Some of the words and the symbols might seem foreign to you, but it shouldn’t take to much financial literacy to see the decrease on the chart above. The image you see is the value of the Dow Jones year to date (1/1/2020-3/11/2020).
This second image might look identical to you, but it isn’t. It is a completely different index called the S&P 500, which instead of compiling 30 companies like the Dow Jones, the S&P 500 compiles – you guessed it – 500 companies. What this creates is a small snippet of the bigger picture, which is the entire market and NYSE.
When these two indexes are falling, it is often implied that the market is falling as well. For people like you and I, this can be a phenomenal opportunity, here’s how:
Get your mind right, right now. Learn as much as you possibly can. I wouldn’t advise doing too much right now because the market may continue to slide due to COVID and Trump and Bernie and Russia and a million other things.. but my advise is learn.
Take a minute to read up on investopedia.com every once in a while. Download Robinhood and Acorns. Mess around a little bit and become familiar because as a young adult, this is the time when you will make the moves that will impact the rest of your life.
If I make the right investment right now, or if I put my money in the right place right now, I can have college paid for for all my children. If I play it right, I could buy a house that will provide me monthly income for the next 20 years.
So can you. None of this can be done without learning what to do first. Internalize as much as you can, and be ready to act soon.
Many people feel that the market is not done dropping, and for people like you and I, that is wonderful news.
Get out there and learn something, and let’s make some serious money.