I asked a Wall Street billionaire for financial advice for someone my age -- this is what he said

Julia La Roche, Julia LaRocheDominic DiTannaThat’s me.

I recently had a conversation with a successful billionaire money manager about personal finance.

I asked this investor for the best money advice they would give to someone my age.

I’m 27, so this advice would probably be useful for most millennials — anyone aged 19 to 34.

Here are the key takeaways:

  1. Set up an emergency fund. This means you need to make sure that you have enough money in the bank to cover six months worth of expenses. This doesn’t mean you have to have six months worth of paychecks in your account, but rather enough funds to cover things such as rent and food. That money would be useful if you find yourself out of work or faced with something such as an unexpected medical bill.
  2. It’s imperative that you complete the first step of establishing an emergency fund before you even consider investing.
  3. When you do invest, it’s best to pick ten stocks for companies that have an easy-to-understand business, generate cash flow, and pay dividends.
  4. Avoid putting your money into a private company, especially if you’re a first-time investor.


NOW WATCH: This is what separates the Excel masters from the wannabes

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.