When it comes to investing, one of the most difficult concepts to understand is the importance of starting early. Why? It’s not something we all think about daily. We’re too busy working, going to school, doing homework, and most importantly having fun. But the truth is, if you start investing even a small amount at a young age, it can pay off big shortly.
The power of compounding
If you're serious about money, it's always a good idea to invest. That's because compound interest is the single greatest force in wealth creation and investing can give anyone access to capital. The only requirement is that you start early and continue regularly. When you do this, you'll be shocked at just how little you need to invest to make a huge difference over time. Although we all know this, the most common reason people don't invest is inertia or said more simply it's just not easy. To excel, you need to be a risk-taker, that’s one of the most important attributes.
How small things early on add up to big things later
Your first experience with something is always the most memorable. When you dig a new corner in Minecraft, that first rewarding moment is an instant classic that sticks in your mind. It was maybe a small thing at the time, but it soon snowballed into more and more amazing experiences. A valuable lesson is learned from that first experience - tell no one. Tell your current manager and show no consideration for anyone else. Just do what you feel is right at the time.
Keep what you need, invest what’s left
The key to being financially independent is thinking frugally. Start by thinking about what you need and don’t buy anything that’s not needed. Invest what you can afford and leave the rest until last. Your money will grow more slowly if you do this.
If you can track your income and expenses, there’s a good chance you will be able to save more than you spend.
Time is on your side
Today’s youth have access to a wealth of information, tools, and inspiration that their elders did not. Whether you’re a student or business owner, time is on your side to invest. Now is the time to take the biggest step possible toward building a brighter future for yourself and your family
Investing early is one of the best, if not the best, ways to preserve your money for the long term. It allows you the opportunity to gain wealth, without risking a large sum of it up-front. It also gives you a chance to avoid being caught up in the bull market that many people foolishly
jump into when they should be putting their money into safe, liquid markets. So what are you waiting for? Start investing now!