How to start investing with millennial wages

Are you are part of the current generation – the one that prays for the next pay day and weeps over the price of a one-bed flat that you can’t afford? Then you are probably wondering why you didn’t start saving money as soon as you’d received your very first pay cheque?

Now that you are *gulp* an adult, you’ve no doubt started thinking more about your future, but not necessarily about saving. This is a major problem for millennials (those aged 18-34), especially as they now outnumber baby boomers. It’s time to start thinking about your retirement, rather than just getting through the week.

How do you do that when a big lump of your wages goes on rent, and the rest on food and paying off debt? Little and often, is the answer, and luckily for you I have ploughed through the interweb to find the best tools and tips to get you started.

Micro-investing

Ever heard of micro-investing? You soon will. This is a great way of saving money without really noticing.

MoneyBox will invest any spare change from a transaction into one of three categories. Cautious: for those who are happy with just saving the spare cash (85%) whilst dipping you toe in safer investments. Balanced: this is aimed at those who are more interested in trying out investment with a cash saving of (30%) and the rest spread over global shares fund (45%) and property shares (25%). Adventurous: for those who fancy a punt on higher risk investment options, giving you cash saving at 5%, global shares fund at 60%, and property shares at 35%. So, depending on whether you just want to use the app to save some extra dosh, or if you feel like you would like to take your first foray into investment, the choice is yours.

Before you know it you will be saving without even noticing.

Find the next Bitcoin

OK, this is easier said than done, but when Bitcoin first surfaced you could buy one for $0.008 and one user actually spent 10,000 Bitcoins on Pizza back in 2010. Today, a Bitcoin is worth just over $1000 (around £800), which makes that pizza worth £8 million today so it better have tasted good!

This one will require a bit of a research as there are now many Altcoins out there on the market, but if you catch them at the right time, it may well pay off, and in the future you may be very thankful, indeed.

Invest in property

You can now invest in property, but not in the way you might think. Much like micro-investing, you are now able to invest in property from as little as £50 thanks to a website called Property Partner.

You will earn a monthly income from the rent (comparable to the size of your investment), and you can exit at any time, with all proceeds going straight into your pocket. It’s worth bearing in mind that, like all investments, this does carry some risk, especially as the property market has a tendency to peak and trough frequently. So, make sure you are aware of all the risks before you invest.

52-week saving plan

Okay, so technically this isn’t investing. But, by saving for a whole year, you could use the money to invest after 12 months. These plans are super easy to follow and you will have saved around £1,400 by December.

Find a chart on Pinterest or make your own, like the one below:

 

 

 

 

 

 

 

 

 

 

The idea is that, in week one, you save £1, and by the final week in December you will have saved £52. You have a nice little nest egg that you can either use to invest or pay off some of that credit card debt.

Disclaimer: Even though the investments for the above are low, they all carry risks. It is worth bearing this in mind before you commit to any of the options mentioned.