A 2024 Bank of America study shows millennials are moving beyond traditional stocks and bonds to grow their wealth—but where should you start?
First-time investors often face a maze of choices, from ETFs to real estate crowdfunding. Today’s article will guide you through the best investments available for millenials, making it easy to build wealth in a way that fits your values and goals.
Why should I be investing now?
Investing early can be important for millennials, especially with rising inflation and living costs. For instance, if you’re saving for a $1 million house and inflation hits 5%, you’d need an extra $50,000 in just one year to maintain the same buying power. But by investing early, you can offset these increases.
Compound interest, which is like earning interest on your interest, can make even modest contributions grow exponentially over time. This snowball effect means that your money can work for you – contributing to sustained growth and financial peace of mind.

So what can I invest in?
Investing can be straightforward when you know your options. Here are some top picks for millennials:
1. Index Funds and ETFs
These are collections of stocks or bonds designed to mimic the performance of a market index—like the S&P 500. By investing in Index Funds and ETFs, you own small portions of multiple companies, potentially spreading risk and reducing costs.
2. Real Estate Crowdfunding Platforms
These platforms pool funds from multiple investors to purchase properties, allowing you to invest in real estate with much smaller amounts than traditional property purchases require.
You can earn rental income and potential appreciation without needing large upfront capital—great for those interested in property investment but without huge savings.

3. ESG and Ethical Investments
These involve putting your money into companies that prioritize environmental, social, and governance (ESG) values.
By conducting thorough research, you can avoid industries like fossil fuels, weaponry, or other sectors that may not align with your ethics.
Creating a Sustainable Investment Strategy
Diversification is key for millennials trying to build a solid investment plan. This might mean mixing growth-oriented assets, like our SBF notes for example, with more traditional options, like stocks and bonds.
Research ethical funds or companies through tools like Morningstar’s ESG ratings to ensure your portfolio aligns with your values, creating a diversified and responsible investment strategy.
What can I do now?
Investing early and ethically can help you grow your wealth while staying true to your values.
Ready to start? Explore more resources on our platform. Or, take one of our interactive quizzes to learn more about your own personal investment preferences.