Benefits of investing at a young age

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When you’re still young, saving and investing are the last things on your mind because of the feeling that one has the entire life ahead and plenty of time to manage finances. Before you let time consume you into thinking it’s too early to start saving, there are a few key reasons as to why starting early can be beneficial for you as a young person

1. Gain higher returns with the power of compounding
Investing early is the key to earning as much as possible with the help of compound interest income. Compound interest is simply the interest earned on interest. “Make money on your money” is the concept behind compounding. By continually reinvesting your earnings, your investment will continue to grow and you will be able to reap the benefits of the potential gains from compound interest. (Please refer our article on the power of compounding to know more. Insert the URL link here.)

2. Improve your spending habit
Warren Buffet says – “Do not save what is left after spending; instead spend what is left after saving.” This should be the mantra of every young person. You should plan out your financial goals, and spend truly what remains with you after investment and saving. This is not tough in case you get the discipline of it. Investment discipline, like every other habit, comes by starting early.

3. Benefits you with better quality of life
One of the biggest reasons why you should start investing early is to be able to retire early. By starting to invest early, you will get the benefit of a good standard

4. Investing early gives you more capacity to take risks
In your early 20s, your biggest edge is time. The more time you have to invest, the more you gain with the power of compounding returns. Also remember, in case something goes wrong, you will even have time to recover.

5. Help you beat the Inflation:
Inflation is the necessary part of the economy and it is a big concern in investment. Over long term inflation actually devalues your money. In inflation, the prices increases and purchasing power decreases. So the earlier your money has been invested, the greater buying power it will get. So stay ahead of inflation with a higher rate of return as long term rate of return often goes way above normal inflation rate.

investment and saving. This is not tough in case you get the discipline of it. Investment discipline, like every other habit, comes by starting early.

of living with the luxury of comforts, provided you invest with the right financial experts

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