Have you ever thought to yourself, “oh i’ll invest when I get older, I have time, I’m definitely too young to be thinking about investments, investment is for old folks”. Then this article is for you.
Investing as a young adult is one of the most important things you can do to prepare for your future. By investing consistently when you are young, you will allow the process of compounding to work to your advantage. The amount that you invest will grow substantially over time as you earn interest and receive dividends, and as share values appreciate.
You might think that you need a lot of money to start investing, but it’s easier than ever to get going with small amounts. Once you set up your investment accounts, you’ll be well on your way to saving for goals like retirement, purchasing a home or even future travel plans. Developing a consistent approach to saving and investing will help you stick to your plan over time.
Asides from investments growing substantially over time, what are the other benefits of investing at an early age you might ask. Well keep reading.
Benefits:
- Secure Future — Thoughts about investing early for a secure future are often overlooked, especially by the younger ones as “don’t worry about my future” seems to be the phrase going around lol. But, given the volatile Market conditions and the shaky Global Economy, investing early for a stable future is wise.
- Time allows you to take risks:Typically, when it comes to investing, ventures that are more volatile yield the highest return on investment. Investors, who have the time to recover if something were to go wrong, have the opportunity to make riskier moves. Those who begin to invest late in life are often inherently more cautious with how they invest their money. Younger investors with a longer time horizon can afford to invest more aggressively while those closer to retirement age might examine how much of their portfolio sits in stocks. One can start investing as early as 20 years old.
- Learn by Doing — Young investors have the flexibility and time to study investing and learn from their successes and failures. Since investing has a fairly lengthy learning curve, young adults are at an advantage because they have years to study the markets and refine their investing strategies.
- The Power of Compound Interest — Essentially, compound interest is the interest earned on interest. By continuously reinvesting your earnings, you are exponentially increasing your return on investment. Watch this space, we will be introducing our rollover feature soon, which will allow you automatically re-invest when your current investments reaches maturity. What is cooler than that huh? It means you can compound your interest over time, go back to living your life while your money does the heavy lifting on your behalf!
- Improves Quality of Life and Spending Habits — By investing early, your investments grow over time. Later on, you can afford things which people who are new to investing can’t. Thus, investing early improves your quality and standard of life.
- Become a Creditor: An early age investment is indeed useful. When you have surplus money invested, you will never have a need to borrow money and become someone’s debtor. With money parked in the right investment avenues at the right age, you have money to lend to others i.e. you become a creditor. Cool right?
- Early Retirement — Early age investments increase the probability of reaching financial stability at a young age. Saving for retirement from the age of 20s rather than the age of 40s is always a better idea. Life after retirement is more challenging than it has ever been, so planning for retirement now will lead to a happier life after retirement.
We can go on and on about the benefits of investing young but we are sure you get the drift with these few points of ours.
You should totally read Start Investing Right then head over Wealth.ng and start your investment journey.
