Simplify Adulting: Turn Financial Stress into Success

Welcome to adulthood—where career goals, relationships, health, and future planning collide faster than you can say, ‘I’ve got bills, they’re multiplying!’ (Cue the John Travolta moment) If you’re straddling the line between Gen Z and Millennials, chances are, you’re looking for more stability wherever you can find it.

Growing into your ‘adult self’ sounds nice in theory, but in reality, it feels more like your frontal lobe has finally kicked in, and suddenly, you’re worried about everything you used to brush off. And what is more adult-ish than a touch of anxiety, especially surrounding your finances? 

Here’s the good news: there are ways to turn that financial stress into financial empowerment by creating a personalized roadmap that makes adulting a breeze. Financial security starts when you earn, save, and invest. 

Here’s some food for thought past the typical, develop-a-budget discussion. 

Invest With Confidence

Feeling secure in your investments starts with understanding them. If you want to learn how to start investing, you could spend hours online, feeling more overwhelmed than when you started. To simplify that process, you can begin by reading this Investing 101 Guide. 

Working on your financial literacy can help you make informed decisions but remember that you don’t have to be the financial mastermind behind your money. Self-educating also gives you the right questions to ask when you are ready to use a financial professional. This is where you can dive into the nitty-gritty with someone who understands or can even create the extensive strategy required to achieve financial security. Financial professionals can be valuable because they can help navigate complex factors like returns, asset value, and market trends.

As always, don’t put all your eggs in one basket. Your expanding knowledge will be paramount to selecting a trusted financial planner or consultant. Like any trusted confidant, even those with a fiduciary duty—including financial advisors—should be vetted like a lawyer or real estate agent, especially when they can invest on your behalf. 

Think About the Present, Add the Future

The best time to start investing is yesterday,’ or so the old adage goes. Giving your money time to grow helps manage your stress, which is equally important as managing your finances. 

Now, take a moment to think past budgeting and paying bills. Do you dream of an early retirement? How does funding your children’s education sound? 

Setting long-term goals can help you form an initial strategy for money allocation. Thinking forward includes more than just discussing goals. It requires paying into them today to reap the benefits for years to come. Historically, holding onto your investments for a longer period can generate additional savings, reduce the impact of volatility, and often involves lower fees and fewer transactions. 

One of the most adult things you can do is to start saving for retirement now. Your savings need time to help secure your future. You’ll generally have various investments inside your retirement account, like mutual funds, bonds, and stocks. This depends on your provider’s plan, and the type of investment account you hold. One of the most popular retirement accounts in the U.S. is the 401(k). You can check in with your HR department, or an advisor can guide you in choosing 401(k) investments best suited for your goals. 

Build It and Mix-It-Up: Diversify

In the building phase, diversifying your portfolio may provide some comfort, knowing your risk isn’t tied to a single company or investment type. There are multiple ways to diversify, like contributing to a retirement plan, buying real estate, or investing in commodities… the list is long. However, many new investors may find investing in index funds to their advantage as they seek to offer a low-maintenance way to begin building a diversified portfolio while also allowing you to invest with less money than you might have initially thought.

For example, the Nasdaq-100 Index Fund (NASDX) seeks to replicate the performance of the largest nonfinancial companies as measured by the Nasdaq-100 Index. In simple terms, an index fund is a mutual fund or exchange-traded fund (ETF) that tracks the performance of a market index.

By understanding your investments, saving early, and diversifying, you can seek to position yourself with a clear path toward financial empowerment. This approach turns adulting from a daunting beast into a walk in the park. So take a stroll confidently, knowing you are laying the foundation to support your future self. 

Important Information:

An investment in the Fund involves risk, including possible loss of principal. Fund information is not intended to represent future portfolio composition. Portfolio holdings are subject to change and should not be considered a recommendation to buy individual securities.

The Fund invests in the largest non-financial companies that are traded on the Nasdaq Stock Market. They are currently concentrated in the technology sector which has been among the volatile sectors of the U.S. stock market. During a declining stock market, this fund would lose money. It would potentially lose more money than other large cap funds.

Nasdaq®, Nasdaq-100® and Nasdaq-100 Index® are trade or service marks of The Nasdaq Stock Market, Inc. which with its affiliates are the “Corporations”) and are licensed for use by the Fund. The Fund has not been passed on by the Corporations as to their legality or suitability. The Fund is not issued, endorsed, sold, or promoted by the Corporations. The Corporations make no warranties and bear no liability with respect to the Fund. Diversification does not assure a profit or protect against lost in a declining market.

It is not possible for individuals to invest directly in an index. Performance figures for an index do not reflect deductions for sales charges, commissions, expenses or taxes.

Shelton Funds are distributed by RFS Partners, a member of FINRA and affiliate of Shelton Capital Management.

Investors should consider a fund’s investment objectives, risks, charges, and expenses carefully before investing. The prospectus contains this and other information about the fund. To obtain a prospectus, visit www.sheltonfunds.com or call (800) 955-9988. A prospectus should be read carefully before investing.

INVESTMENTS ARE NOT FDIC INSURED OR BANK GUARANTEED AND MAY LOSE VALUE.

The reader should not assume that investment decisions identified and discussed were or will be profitable.  Specific investment advice references provided herein are for illustrative purposes only and are not necessarily representative of investments that will be made in the future.