Investing is something you’ve probably heard of. You might even know a fair bit about it. However, if you’re in your teens, or your early 20s, you might think that you’re too young to start investing. Surely, you should enjoy your money for a little longer before you commit a portion of it to investments?
The fact you’re thinking about investing your cash at all is great, but here we’re going to discuss the age you should begin. Read on to learn more…
Compounding: Where The Magic Happens
Saving money in a bank is ok. It’s ‘ok’ until you have some living expenses saved up, but it shouldn’t be the way you go about trying to have money. It’ll depreciate, and it will lose value in the long run. With investing, you get to enjoy the magic of compounding. This effect is even better if you begin investing while you’re younger. You have the potential to earn far more over one year with investing than you would having money in a bank. In fact, you’ll earn interest on your interest and your initial investment every year, so what you’re making just goes up and up. The more time you have to invest, the wealthier you’ll be in the long run.
Should You Start Now?
You may have heard of Warren Buffet. He is one of the top 5 richest people in the world, and he started investing at age 11. He even says he wished he had started younger! That should tell you all you need to know. Learn as much about the stock market as you can, whether you’re still in school, college, or in your 20s. Start learning as much as possible so you can get started. The more years you have under your belt, the more beneficial this will be for you, although it’s never too late to start!
You might be wondering ‘what about my debt?’ Many experts encourage investing even if you have student debts to pay off. You can find so many forex learning resources online that will help you to figure out what to do for free. There are so many beginner techniques you can try.
Parents who love investing are even discussing the age they are going to get their kids started – 12-14 seems like the general idea, using money given for birthdays, Christmas, and as a treat!
So, when should you start investing? Are you too young? The answer is simply: right now. If you’re earning, if you’re making any kind of money at all, you should look at investing it so you can watch the magic happen and enjoy it in no time at all.
Just remember; getting attached to one investment can be dangerous. You can’t get sentimental. You don’t have to check all the time either, so don’t think it’s going to take over your life. There are even people out there who will do it for you, taking a percentage of what you make, so you can remove much of the hassle associated with it.
Check out these other great resources for side hustlers and for people who work from home!
Yes, I include affiliate links in all my blogs. I get paid a little each time you click and buy from the included links, but I only recommend products that I use myself. Thanks for supporting our blog and our dream of changing the financial futures of all families and individuals! ~ Lydia Y-S.