Welcome to the financial independence rodeo, millennials! Whether you’re balancing a latte in one hand and an avocado toast in the other, or you're sweating bullets in your studio apartment over your latest start-up idea, this is your go-to guide for investment strategies in 2023. Are you ready to make your money work as hard as you do?

1. Stock Market – Rolling the Dice on Wall Street

The stock market, despite being older than your grandpa’s false teeth, remains a relevant investment option. According to a study by Ibbotson Associates, the stock market has averaged a return of approximately 10% per annum since 1926[^1^]. Though, remember that grandpa’s teeth may not be a pretty sight, neither is the stock market without its risks.

When investing in stocks, it's not about throwing darts at a board. It's about picking companies and sectors that show promising future growth. Take Elon Musk’s ventures, for example. Who in the '90s would’ve bet that an electric car company would outstrip established giants like Ford or that a private company would launch rockets into space?

It’s also about diversification, or in millennial speak, not putting all your avocados in one basket. A good starting point is low-cost index funds. According to Warren Buffet, "A low-cost index fund is the most sensible equity investment for the great majority of investors".

Remember, the stock market is a long game. It's more of a slow-cook crockpot rather than a high-speed blender.

2. Real Estate – Turning Keys and Making G’s

Real estate has long been a popular investment choice. Whether it's residential, commercial or real estate investment trusts (REITs), the property market can offer steady cash flow, tax benefits, and appreciation over time.

Investing in real estate doesn’t have to mean sinking your hard-earned dollars into a fixer-upper or a high-rise condo. As reported by Forbes, millennials have been changing the face of real estate investment by using technology to invest in crowdfunded properties and REITs[^2^]. Platforms like Fundrise allow you to start investing in real estate with as little as $500.

However, remember that real estate isn't just about watching HGTV and pretending to be a Property Brother. It requires careful research, a fair bit of capital, and sometimes, the patience of a saint.

3. Peer-to-Peer Lending – Becoming a Mini Bank

Peer-to-peer lending (P2P) is like being the good witch Glinda from The Wizard of Oz, lending out your ruby slippers (read: cash) to other individuals or small businesses in need. Platforms like Prosper and Lending Club allow you to spread your investments across hundreds of loans in increments as small as $25[^3^].

While the returns can be attractive, ranging from 5% to 9% according to Investor Junkie, the risks are also higher[^4^]. As Mark Twain said, "I am not as concerned about the return on my money as I am the return of my money." Make sure to tread cautiously.

4. Cryptocurrencies – To the Moon, or Maybe Not?

You probably knew this one was coming, right? It’s the wild, wild west of investing and the millennials' favorite gamble. Bitcoin, Ethereum, Dogecoin – you name it. However, if your knowledge of crypto is limited to memes and Twitter hype, it's time to hit the books. Crypto is volatile, unpredictable, and should come with a warning sticker: "Investor discretion advised."

As of July 2023, Bitcoin has crossed the $100,000 mark, as reported by CoinDesk. But remember the crypto crash of 2018? These digital currencies can be as volatile as a toddler on a sugar rush[^5^].

So, before you hop on the crypto rocket ship, take time to understand the technology behind it – blockchain. Resources like Blockchain and Cryptocurrency Explained by University of Michigan on Coursera can be a great starting point[^6^].

5. Robo-Advisors – Skynet for Your Portfolio

If you’re not a finance whiz, don’t sweat it! Welcome to the age of robo-advisors, where algorithms take care of your portfolio. Brands like Betterment and Wealthfront provide automated investing services with low fees[^7^].

These digital platforms use machine learning to manage, diversify and rebalance your portfolio, taking into account your risk tolerance and investment goals. It’s like having a personal financial advisor who doesn’t sleep, eat, or charge exorbitant fees.

6. Exchange-Traded Funds (ETFs) - The Sampler Platter

When you can't decide what entrée to order, you go for the sampler platter, right? That’s essentially what ETFs are. They are baskets of securities that track a specific index or sector and are traded like individual stocks on an exchange.

The benefit of ETFs is that they provide diversification, are more cost-effective than mutual funds, and can be bought or sold during the trading day at market price. It’s like getting a bite of everything at a cheaper price and without the need to buy each separately. According to ETF.com, as of 2022, there are over 7,000 ETFs globally with assets totaling more than $7 trillion[^8^].

However, while ETFs might seem like a no-brainer, they aren’t foolproof. As with any investment, they carry risks. Make sure to pick the right ETF that aligns with your investment goals and risk appetite.

7. Sustainable Investing - Growing Your Green While Going Green

Millennials care about the planet, social justice, and making the world a better place. Sustainable investing, or ESG (environmental, social, and governance) investing, allows you to do just that. ESG investing involves factoring in a company's impact on the environment, its social responsibility, and the quality of its governance.

By 2020, ESG assets reached $17.1 trillion, representing one-third of total US assets under management, according to US SIF Foundation[^9^]. You can invest in individual "green" companies or opt for ESG-focused funds. Brands like Swell Investing have even built platforms specifically for this purpose1.

Remember, investing sustainably doesn’t mean sacrificing returns. A study by Morningstar showed that a large number of ESG funds outperformed the market, even during the COVID-19 crisis2. So, you can save the polar bears and turn a profit at the same time.

Conclusion: A Dollar Saved is a Dollar Invested

As Albert Einstein famously said, "Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it." By starting to invest early, you harness the power of compound interest, giving your money more time to grow.

Ultimately, the best investment strategy will depend on your individual circumstances, risk tolerance, and financial goals. So, whether you're placing your bets on Wall Street, becoming a digital landlord, or jumping into the crypto-verse, always do your research. And remember, sometimes the best investment you can make is in yourself and your financial education.

No matter which path you take, remember this millennial mantra: Investing isn't just for the grey-haired, suit-wearing, briefcase-carrying crowd. It's for us, the scrappy, the savvy, the ones who dare to imagine a financially secure future and make it happen.

So, go forth and invest, millennials. Make your money work as hard as you do, and turn your financial dreams into reality. After all, you’re not just investing in the future of your bank account, but the future of the world.

Remember, the future won't fund itself. Now, go out there and conquer the financial world, one dollar at a time!

Footnotes

Swell Investing ↩

Morningstar, 2020 ↩