If you’ve attended any of our courses about investing, you’ll be familiar with the refrain of “invest early, start young”. And while you might think that you’re not quite ready, have too little income to spare, or just do not know where to start, here’s 3 huge reasons why it’s important to take that first step.
1. Compounding returns
Investments act very much like a savings account. You put in a certain amount and you get interest every year. Re-invest that added amount, and you get increasing returns every year, for as long as you keep it there. For those who start in their 20s, they could make around $77,000 in interest if they invest $2000 every year until their 60s. That’s close to double the amount they would have invested!
2. Saving and spending habits
Creating the habit of setting aside a set amount of your monthly or yearly income is a very useful and healthy habit to have. Those who invest early are less likely to overspend and/or break the bank over impulse buys. You’d be surprised at how few people have this level of discipline over their purse strings.
You’ll only get this advantage once in your life. The earlier a person starts investing, the more risk they are able to afford. Being young is a strength in and of itself, as you will have greater earning power and potential, thus allowing you to take on higher risk investments with higher returns.
In the end…
The decision lies with you. Will you start your investment portfolio now or later? If you’re looking for more resources before making your decision, you can attend our Investomania conference for FREE. Expert traders Sean Seah and Sandy Jadeja will be there to answer your questions and share their trading strategies.