A recent study by the Government Accountability Office (GAO) predicts that one out of every three workers will have nothing ($0) saved in a 401k style account by 2050. This statistic is supported by the National Association of State Boards of Education's report that states 'most workers aren't participating sufficiently enough to allow comfortable retirement'.



Many people are aware that they need to start saving for their future; however most people have no idea where to start or how much they will need. With uncertain economic times it is now more important than ever that today's youth start investing young. That means giving practical financial education skills to young adults early in life so they can achieve financial security.

Plan for Financial Security while Your Young.

The thought of retirement may be a ways off for those under 30 years old; however this is a critical time to secure your financial future. The sooner young adults invest the easier it will be for them to achieve financial security. This provides the freedom to live life to its fullest. These simple lessons will have you on the road financial security and, as equally important, will allow you to fully enjoy life now.

1) Invest early - The earlier you get your money working for you the sooner and easier you will have financial security. By investing young you are able to harness the power of compounding interest.

'Compounding interest' is simply earning money from the profits of your investments. So you're making money off money you did not have to work for. This gives today's youth an advantage. Just by simply investing a $98 per month starting in your mid teens could make you a millionaire in your mid fifties. Plus it will give you the ability to afford and fully experience life during the process.

2) Investment consistency - Investing on a consistent basis will allow you to generate long-term gains over time. For most, simplicity equals consistency; and a consistent investment plan leads to long-term financial security. Start to follow a consistent investment plan now; then as your investment knowledge grows you can add other forms of high-return investments.

3) Diversification - Diversification lowers risk. If you have all your money invested in the stock market, and the market crashes, you could potentially loose a lot of money. Now if you had a portion of your money invested in stocks, some in real estate, some in businesses and some in other alternative investments - if any one of the markets corrects itself, you wouldn't get hit as hard since you're diversified.

4) Tax benefit vehicles - Use investment vehicles that give you tax benefits. Many people don't realize about 40% of your income goes to pay taxes. So by choosing an investment vehicle like an IRA may help to keep more money in your pocket.

So the key to young adult financial security is following simple, consistent investment strategies starting at a young age. Being diversified and using investment vehicles that provide tax benefits will help to supercharge your returns. Start immediately to secure your future and so you're able to enjoy your life right now.