Embracing Risk in Investing: A Millennial’s Unconventional Approach
As a self-proclaimed goody-goody, I’ve always been risk-averse in life. But when it comes to my finances, I’m surprisingly bold. Recently, I found myself urging a friend to move her savings into investments, citing the meager 0.01% interest rate she was earning. Her response? “I’m too risk-averse.” It struck me that I defy the common millennial stereotype of fearing the stock market.
A Unique Upbringing
Growing up, my parents instilled in me a sense of financial security. During the 2008 stock market crash, I was in college, and my parents were living in China. I didn’t witness their financial worries firsthand, which allowed me to maintain a sense of detachment from the crisis. When I finally asked my dad about investing, he calmly shared how much they had lost in the market, but also how they had come out ahead by leaving their money invested.
Learning from Experience
My dad’s wisdom stuck with me: the stock market is cyclical, and panicking can lead to poor decisions. As millennials, we have the luxury of time to take calculated risks and ride out market fluctuations. We can afford to be bold, especially when paired with job stability, an emergency fund, and a backup plan.
Breaking Free from Fear
I didn’t start investing immediately, but my dad’s words stayed with me. When I finally took the plunge, I became a bullish investor, willing to put more into the market than many of my peers. Market dips no longer send me into a panic. I believe investing is not only a risk worth taking but also essential for long-term financial wellness.
Time is on Our Side
As millennials, we have 30 or 40 years before retirement to let our investments grow. We can take advantage of the opportunities the stock market offers, knowing that we have time to recover from any setbacks. By embracing risk and investing wisely, we can secure a brighter financial future. My money, and yours, deserves better than a high-interest savings account.
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