As a young adult most people are concerned with paying college tuition, paying it back, or earning enough at their current job to pay their rent. Few young adults think about planning for the future, but in reality early adulthood is the best time to start saving for the future.
Of course, at this age most people would ask what a trust was if they were to start looking into investing. Unfortunately the number one reason why young adults do not maintain solid financial health is because they do not know how. Thus, the key to developing strong financial health at a young age that can be maintained as they grow lies in education about different investment funds and opportunities.
The first thing that you need to think about is the level of education you pursue. Those who continue on to higher education past A-levels at age 16 receive as much as triple or more than those who enter the workforce at age 16. While it may be tempting to leave education behind as soon as possible, further education plays a large role in your earning potential and therefore a large role in building better financial health in the future.
Choose the Right Job
The second thing that you need to do is make sure that you choose the right job. The career path you choose will also play a large role in your financial health. If you want to enjoy an easy retirement in the future and a comfortable lifestyle then you will need to choose a career that is going to support this goal. Investigate the earning potential of any job before you start to study or work in its direction to make sure it is going to be the right fit for your future aspirations.
Open an Investment Fund
The next thing that you want to consider doing is opening an investment fund. While you are young it can be tempting to ignore your retirement years, but opening an investment fund now is the single one most important thing you can do. Right now you likely have limited responsibilities which frees up a great deal of money to save towards the future. Keep in mind that even a small amount will have decades to grow so every little bit counts. Investing one hundred pounds now will worth much more than one hundred pounds in twenty years because of the compounded interest it will accrue.
Contribute to a Pension
Finally, when you choose a job or career path and become gainfully employed make sure that you have a pension as part of your benefits package. The state provided pension is hardly ever enough to live off it, so you will need to supplement it with an actual employer provided pension. Most employers offer some type of pension so make sure that you opt-in while you still can during the hiring period. Remember also that if they match your contribution this is the time to take advantage of the extra funds and consider paying more into the plan to get more out of it.
The below video by Skandia provides information on investment opportunities, how they work and what the benefits are.