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Investing Your First Salary: Make Your Money Work for You
Plus: More Influencers & Status Symbols
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Grow Your Money Early!
Investing at 22 can result in hundreds of thousands of extra dollars. đź’°
Congrats! You just landed your first job. Now what?
As you start earning a steady income, you need to manage your finances wisely, particularly regarding investments. By making informed choices today, you can lay the groundwork for a secure financial future.
Begin by establishing an emergency fund of three to six months’ worth of living expenses to cover unexpected costs. Put this money in a high-interest online savings bank like Ally or Marcus by Goldman Sachs.
This financial cushion will prevent you from dipping into your investments. Next, take full advantage of any employer-sponsored 401(k) plans, especially if your company offers matching contributions. This “free” money can significantly boost your investment journey.
Once you’ve maximized your 401(k), aka pre-tax retirement funds, consider investing your post-tax salary. The earlier you start, the more powerful compound interest becomes.
For instance, investing $200 a month at age 22 could yield around $200,000 by age 65, compared to about $90,000 if you wait until 30. This shows the substantial difference time makes in building wealth.
Here are some actionable insights to help you get started with investing:
Use Micro-Investing Apps: Platforms like Acorns let you invest your spare change automatically, making it easy to start without feeling the pinch.
Consider Robo-Advisors: Services like Betterment or Wealthfront offer automated investment management tailored to your goals, with low fees and minimal initial investments.
Educate Yourself: If you want to do more and have a more manual approach, use a platform like Vanguard that offers access to low-fee funds. Utilize resources like Investopedia or Coursera for free or low-cost courses on investing basics to empower your decision-making.
By prioritizing your emergency fund, taking advantage of your 401(k), and starting your investments early, you can harness the power of compound interest and secure a more prosperous financial future. Take that first step today!
Dream Jobs Shift
Hashtags reveal a change in career aspirations. 🎬
A recent Class Central study highlights a major shift in what young people want want to do for work. Instead of choosing traditional paths, many are dreaming of careers as influencers, artists, and models, according to reporting by Audacy.
This change seems to reflect how much social media has shaped views, favoring creativity and personal expression. The study dove into Instagram hashtags to find the most popular jobs among young professionals. Here’s a look at the top five:
Model: 385 million posts
Artist: 345 million posts
Photographer: 268 million posts
Makeup Artist: 149 million posts
Blogger: 127 million posts
On the flip side, traditional careers like doctor and lawyer ranked much lower, coming in at 25th and 34th places, respectively. This data suggests that while creative pursuits hold significant allure, there is still an interest in professions that require practical skills.
It’s clear that social media is changing how many envision their careers and may be leading to a rethink of what success looks like today.
Grocery Status Symbols
Grocery hauls are the new humblebrag. đź›’
Grocery shopping has become a status symbol for young professionals, with health-conscious and high-priced foods taking center stage. Upscale grocery stores, like Erewhon, are drawing in consumers eager to showcase their lifestyle and values, a trend highlighted by Business Insider.
Recent data shows that groceries have become the top splurge for young people, even surpassing spending on dining and travel. Despite rising costs, many are prioritizing premium foods as an affordable luxury, often taking on extra jobs to support this lifestyle.
Social media is driving this trend, making grocery hauls a way to show off personal identity on TikTok. Sharing health-focused items online not only highlights wellness but also suggests a level of wealth, becoming the new way to "brag" online.
Brands are adapting quickly, using influencer partnerships to promote health-centric products that appeal to young shoppers. In a world where everything is content, grocery choices are becoming key markers of personal expression and social standing.