Now is the best time to start investing. If you will think, one day when you have got enough money and you will invest, that time will never come. Now is the time.
Investing in anything from an early stage is advantageous. It gives you more time to learn and decide and put your effort in the right place at the right time.
You want to be an early investor but still unsure why you should start investing right now, then go through my top ten reasons to give you some convincing tips:
1. More financial freedom
Investing gives you the option to lead your life on your own terms. You will have the option to choose when to work and when to stop because you will be able to support yourself in all the situations. There will be times when you will have to stop working or you might have no work but you will be ready to tackle these situations with ease.
So, take control and improve your life.
2. Easy to make mistakes at a younger age
The early you begin, the more time you have to mend your mistakes. At a young age, you might make mistakes but that will be affordable because what would matter the most is your savings not the rate of return on them. The return might be less but you started saving and will end up with more when the real-time will come. Also, when you start early you will have more time to work on your skills and learn from your experiences.
Starting early is the key than doing it right.
3. Wealth grows over time
Heard of compound interest? That will do its magic and you gain interest on interest.
Let me give you an example to show how it works, suppose you invest $1000 in a year and you gain a 12% return. So your total amount will be $1120, which means you gained $120 extra. Now next year even if you are not adding a single penny still you will make 12% on $1120 which will be approx $1254.
This is how the money that you make will make more money for you without you adding anything from your side. And the early you start, the more you gain.
4. Secured future
People mostly invest in their retirement. When you are young and working, you will have a salaried income but when you retire you do not have any source of income. It becomes difficult to maintain the same lifestyle. That is why it is important to invest a part of your salary for those days and secure your future.
5. Better Spending habits
Starting to invest early is a good habit that leads you to another good habit of spending less and avoiding debt. When you start investing you like to earn more interest and hence you would be very careful while spending on unnecessary things or going out for loans.
6. Standard of living improves
Early investment will lead you to a better financial position a few years down the line. You can afford and spent on things you want. You will be in a better position than your colleagues or friends who started to invest late in their life.
Also, you will be well prepared for emergencies and will have enough funds to combat such situations.
7. Experience counts
A popular proverb Practice makes a man perfect tells us that there is no alternative to practice and the experience you gain out of it. The learning that gets out of the experience is simply invaluable and utilizing those will help you gain more.
There are people out there in the market who claims to beat the stock market or promise to get you more in less time but with the experience, you can differentiate and see these lies.
The experience will tell you that patience, time and consistency are important in making more money or the compound interest to do its magic.
8. Invest in businesses
Being an investor you can help entrepreneurs and start-ups in establishing new businesses. You can help them achieve their goals and become successful. In return get a percentage of ownership in those companies.
9. Early Retirement
An early retirement is always an option if you will start investing early and will have enough funds.
FIRE (Financial Independence, Retire Early) is a movement that is very popular among millennials. The goal is to invest more than 50% of your income to save and gain more to retire early in life and follow your passion or do what you always wanted to do.
10. Secure financial goals
You want to buy a car, a house, saving for the higher education of your kids, building an emergency fund, or planning to pay off your debt, all of these are possible when you start investing. Start early and invest consistently for a profitable return and your goals are secured.
Conclusion
Starting to invest at an early stage is a very good idea. Even if you mess up, the repercussions will be manageable. You will learn from your own experiences and implement them by the time you actually need to make wiser decisions. You will be a pro with time and will be able to make quick decisions for a higher return on investments. Your future will be secured and you will be able to achieve your goals. So what are you waiting for? Start investing now!
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