Impact – Wealth Management


Advice for Graduates: What our Advisors Wish They’d Known

Congratulations, graduates! This is such an exciting time in your life. Your future is full of possibilities… and pressure! When you graduate from high school you’re sort of expected to know what you want to do with your life. Let’s get real: almost no one has discovered their “life calling” at 18 years old. And when you graduate from college, the pressure is on to land that great job.

The future is indeed full of possibilities and opportunities, but that can feel completely overwhelming. The future is unknown – and it will almost certainly be filled with twists and turns. We don’t get the benefit of a crystal ball, but we can learn from others who have the benefit of hind sight!

We asked our advisors to think back to their own graduations and share with you what they wish they’d known at 18. Here’s what they had to say:

Beware of “Easy Money” Scams:

We ALL dream of easy money! We dream of it because the reality is, money doesn’t usually come “easy”. It’s pretty common to come across tempting offers that promise quick and easy money on TikTok, Instagram, etc. The unfortunate truth is that anything that sounds too good to be true is likely a scam. Instead, focus on the principles of hard work and a diversified investment strategy. By putting in the effort and spreading your investments across different asset classes, you’ll increase your chances of long-term financial success.

Start Investing Early:

Time is your greatest asset when it comes to investing. Even if you can only contribute a small amount, start investing as soon as possible. I know what you’re thinking “I don’t have any money!” You might feel like you have no money, but you can usually find $7 a week to grab some Starbucks. Even if you just started with $25/month (less than your Starbucks), you’d be surprised what a difference that little bit can make over time. Many young adults believe they will have more money in the future to invest, but life’s financial responsibilities often increase faster than expected. By starting early, you can take advantage of compounding returns and give your investments more time to grow.

Seek Advice:

Don’t be ashamed of what you don’t know about taxes, investing, and other financial matters. We don’t often do a good job educating students on all that they need to know about personal finance. Don’t be embarrassed about it! Seek guidance from trusted adults or professionals who have expertise in these areas. PLEASE don’t rely solely on social media platforms or viral TikTok videos for financial education. A qualified financial advisor can provide personalized advice tailored to your specific needs and goals. Professional financial advice can be expensive, but there are reputable resources available for you! In fact, at Impact, we have a program called Impact the Future that’s specifically designed to help you get off on the right foot financially. Just shoot us an email and we’ll get you hooked up!

Effective Communication is Key:

Developing strong communication skills is probably the most important key for success in all aspects of life, including your finances. Learn how to express yourself respectfully and confidently. Effective communication will help you negotiate better deals, navigate challenging conversations, and build meaningful relationships (including those with financial institutions and professionals).

Invest in Yourself and Others:

While financial investments are important, remember that investing in yourself and others can have a profound impact on your overall well-being and success. Continuously seek opportunities for personal growth and education. Take care of your physical and mental health, as they are invaluable assets. And don’t forget to find ways to give back and support others in your community. The fulfillment and connections you gain from these investments are truly priceless.

“Honorable Mention” Points

  • Cultivate a habit of reading to expand your knowledge.
  • Understand that good times don’t last, but neither do bad times. Stay resilient and adapt to changing circumstances.
  • Learn how to manage and process unpleasant emotions, as it will empower you to tackle challenges on a larger scale.
  • It’s not a mistake, if you learned a lesson. Our wrong decisions are stepping stones towards growth. Leverage your experience and let the power of reflection illuminate your path forward (that’s a good one – write that one down).

As you embark on your life journey, remember that building a strong financial foundation takes time and effort. There is a lot about life that we don’t get to choose. But follow these key pieces of advice and incorporate them into your decision-making, and you’ll be better prepared for the twists and turns life will throw at you. Best of luck on your journey! WE BELIEVE IN YOU!

Our attorneys want us to remind you:

Investing involves risk. As a general rule you should only trade in financial products that you are familiar with and understand the risks associated with them. Impact Wealth Management LLC is a fee-only Registered Investment Advisor (RIA). We are based in beautiful Sioux Falls, SD and regulated by the State of South Dakota and Arizona. This article and its contents are meant to be educational and not as specific advisor for your individual situation or as a replacement to legal, tax, or personal financial advice.