Breaking Down Barriers to Investing
For many, especially younger generations, the world of investing can seem daunting. But Nasdaq CEO Adena Friedman has a simple yet powerful piece of advice: take action and learn by doing.
Start Small, Dream Big
Friedman, a seasoned expert in the field, recommends beginning with small amounts of money or even using platforms that don’t require real funds. This approach allows newcomers to gain confidence and education without taking on excessive risk. Her own children, including one son who dabbles in a stock event marketplace app, have taken this approach to heart.
Overcoming Fear and Mistrust
Unfortunately, many young people are hesitant to invest their hard-earned cash. A recent survey found that 42% of 18- to 34-year-olds aren’t saving or investing at all, citing fears of loss and mistrust of the market. Experimenting with small amounts of money can help alleviate these concerns and build a foundation for long-term financial growth.
The Power of Long-Term Thinking
As investors gain experience and confidence, they can begin to focus on long-term investments that will have a lasting impact on their future. According to Friedman, this is crucial for achieving financial freedom and affording life’s big-ticket items, such as education, housing, and travel.
The Importance of Early Action
Barclays CEO C.S. Venkatakrishnan echoes Friedman’s sentiments, emphasizing the importance of starting early. “Investing in their future is really one of the biggest decisions young people can make,” he notes. By beginning to invest from their first paycheck, individuals can set themselves up for long-term success.
Other Paths to Investing
For those looking to get started, there are numerous options beyond individual stock market investments. Contributing to an employer-sponsored 401(k) or Roth individual retirement account can provide a solid foundation for retirement savings. Certified financial planner Douglas Boneparth recommends exploring these options to secure a brighter financial future.
Wealth Creation Through Investing
In the end, investing is a critical component of wealth creation in the United States. By taking action and learning through experience, individuals can set themselves up for long-term financial success and security. As Friedman so aptly puts it, “[Investing] is a foundational element of wealth creation in this country.”
Leave a Reply