Individuals who were born between 1981 and 1996 are referred to as millennials. The younger generation has a lot to face to get started on the right path, from landing a job to ensuring they don’t rack up too much debt. Many younger adults aren’t thinking about retirement yet, but it’s a good thing to embrace.

Millennials Will Mostly Invest Themselves

There are several reasons why millennials should consider investing. One is the fate we have with Social Security. It’s not guaranteed that money will be available once younger people reach age 62. The benefits could be reduced. Secondly, pension programs are not offered as much as they used to be. Only about one-fourth of Fortune 500 companies even deliver them to employees. It’s not all doom and gloom, however. There are ways the younger generation can take action to be prepared for the future.

Invest Early

The younger people can start investing, the more cash they’ll have later in life. It’s as simple as that. Because of compounded interest, you’ll have a more considerable sum of money. So even starting just five years earlier, like age 25 instead of 30, can significantly impact later on.

Consistency Is Imperative

It’s not expected that someone early in their life would be able to contribute the maximum amount to a portfolio. That’s not that realistic. However, regular contributions will make all the difference. Even if someone could only afford $100 a month starting, that consistency is the most important. Over time, as you advance in your career, you can have more money devoted to investing. The best thing you can do is get started, no matter how small the amount.

Determine How Much You Can Invest

Figure out how much you can invest in your investment account. Make a list of your monthly bills, such as rent, groceries, gas, and utilities. Before running out to get the newest iPhone, invest in Apple stock instead. Always put yourself first before spending money on other items that aren’t necessarily a priority. Generally, it’s considered that around 15 percent of your pre-tax income is ideal, but that is a goal to work towards if you can’t pay that amount early on.

You’re Investing For the Long-Term

Remember, if you start investing around age 25, you’ll be investing your money for at least 30 years. Understand that you should think about years, not days or months, because there are fluctuations in the market. Take time to learn about investment strategies with the help of a professional.

The bottom line is that much of the younger generation can start investing, even with a small amount of money. The most important aspect is getting the education needed to create. With the proper help, even someone in their early 20s can be on the pathway to financial freedom later in life.