Why Its Better to Invest Young
December 21, 2021
Justin and Michael graduated on top of their class at Yale University. They were the best of buds but parted ways after graduation. Eight years later, Justin and Michael at 29 see each other at a reunion and catch-up. At this point, Justin can already choose not only to resign from his 9 to 5 job but also to retire and never work a day in his life again. From time to time, he checks the ebb and flow of the stock market and does monthly trades. With everything he gained for the past 8 years and considering that he is still a single man, Justin could already live comfortably in the next fifty years of his life.
On the other end is Michael who also works a 9 to 5 job with a five-figure annual salary that he uses to cover his mortgage and pay his college outstanding debt. Both are brilliant thinkers and doers but what caused the gap?
Justin invested right away after graduation while Michael decided to delay until his family went through some financial troubles and he didn’t have money left to even pay for his own bills.
The finance experts always say to invest your money while you’re young. People may think that it’s because the youth is easily manipulated to put their money into investment schemes and the financial system but no. When you invest, your money will grow. If you plant a seed ahead of everyone else, you would have grown a tree while they are still tending to a stem.
But it’s not a competition; it’s more of investing at a young age so that it’ll grow early and have more potential for growth. We listed down some reasons why you should start investing now:
1. Money you invest gets compound interest.
You may not be good in mathematics but you should know in a concept that invested money grows in compound interest. When you invest, you will eventually get interested on top of the interest that your money already made. What happens? Instead of letting your money sit in your bank account, you could let it grow on an investment that would get bigger through compound interest over time. It always entails an amount of risk that if you don’t take, you miss the opportunity of a big return and a massive source of passive income.
2. You still have time to commit mistakes.
Since you are young, you have all the time in the world to make mistakes. Let’s assume you still don’t have your own family and you don’t have children to feed or send to school. You have fewer responsibilities at this point and you are not accountable for anyone other than yourself. If you commit a mistake, you still have plenty of time to retract it and bounce back. Moreover, when you are young, mistakes are learning opportunities. You only get to learn valuable lessons in life if you take the risk.
3. Good money making habits will be developed.
If you start investing young, you would develop good money making habits even though you still don’t have lots of capital. You will quickly learn how to manage your money well, diversify your eggs, save, and make the most out of all your earnings. You would know the value of budgeting and controlling your urges to spend, especially on items you don’t even need at the moment or ever. Investing young will open you early to the possibilities of how your money can grow through the years. Armed with this knowledge, you are able to make more sound purchases and make a good value out of your hard-earned money.
4. You may make use of the skills this generation has been known for.
Most of today’s youth are always online. As a millennial or a Gen Z, we are already used to the secrets of the Internet. We are familiar with exploring stock market apps and researching the World Wide Web for news and information about companies we are thinking of investing in. We could look at patterns and different analysis to guide and guard our investments.
5. Investing money at a young age may lead to financial freedom and early retirement.
Like Justin who started out young, you may also retire early without having to worry about paying your bills. It’s the concept where you delay gratification at the moment and eventually reap the benefits of your patience and sacrifice in the future. Instead of buying a new Louis Vuitton bag, invest your money in stocks or real estate. You won’t get to buy a Louis Vuitton bag at the moment but in the future, you’ll be able to buy more than just one if you’re willing to wait.
The Perfect WFH set-up for Investors
EG1-48”W Electric Height Adjustable Standing Desk
To save money but also have a great quality standing desk, you may want to opt for this one.
This has a smooth and precise electric lifting ability. The height ranges from 28.7” to 48.4.” Decibels are also less than 50 and they can lift 132 pounds or 60 kilograms in maximum without having to worry about stability or capacity. Its control panel is just an Up and Down button which will give you convenience when shifting different positions at work. Even better to hear that this has a cable management system equipped with holes and helping you maintain a tidy desk.
Speaking of the desk, this new desktop features a curved and protective edge.
Massage Gaming Chair
The FlexiSpot massage gaming chair can be used for the workspace as well. It is made of soft luxury breathable bonded leather, has a thick padded seat, and a steady chair base. It has a rocking angle at 10° and an adjustable reclining angle from 90°~170°. It also comes with an adjustable lumbar support and headrest pillow for comfortable seating.
V9 Pro Home Office Height Adjustable Cycle Desk Bike
This FlexiSpot favorite can keep a person awake and active while working. It boosts energy as well by allowing the person to pedal at a comfortable or challenging resistance level while finishing tasks throughout the day.
Don’t miss out on the opportunity to invest now just because you think you are young and don’t know much. Of course, you should do your research, ask industry experts, and then invest wisely. Let not small resources hinder you because you can always start small when investing. Trust us. Even just a small portion of your money now can multiply through compound interest and give you the freedom in life that you have always been dreaming of.
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