Why You Should Invest Early
Written By: Jasmine L.
Throughout the entirety of the class, we have been talking about investing. Usually, people will start to invest around theirs 20’s. In fact, there have been studies that show that people usually begin to invest around 26-46 range in their lifetimes for a job and for their retirement. However, it has also been proven that it is better to start saving and investing. For me, there are three main points on why you should start to invest early.
The first is that the time allows you to take risks. Since this is the younger generation, we have more ample time on our hands to see what all of our options are. Every investment has risks to them, whether it be a little bit or a lot so choosing is a bit of a touchy thing for most people. However, since we have more time available while we are young, we also have more time to separate our options. Choosing to invest in a low risk areas are usually the best for highschool and college students just starting. Low risks are offered because losing money is not really preferable to anyone, especially to a college student. It helps keep them on track while focusing.
Secondly, as you grow older and think about where your money will be going from now on, your spending habits will be highly improved. Now that you have become conscious about what’s happening with your money, you will start to save more as to not lose what you have. This will improve your investing as well. If you start saving before you invest you will have more to put in. Saving after investing and during, will improve your day to day living as well. It helps to cut unneeded expenses and focus on your budget more
The final reason is that you’ll be a step ahead of everyone. Since the greater majority of people will be investing later on in their life, investing now would mean that you would get a head start. Starting early while others started later mean that you would have more and would be afford things others could not. Being immediately put on top of your game would greatly impact the future and a good way.
With these and the graphs, information is a bit more clear for the younger or the youngest generation of the success of people. By this, we can not only gain information for ourselves, but also help the spread of information. The legal age of investing is 18, which means starting straight out of school would be the best option. Above, you will see two graphs and charts that show the connection between the young age and investing. Look and leave what you think is the best option.
I certainly agree that all people should invest early. I have learned a lot about this topic in personal finance and hope to begin investing soon. By the time I am older it will greatly benefit me and I certainly want to have some money to fall back when I am an adult and looking to retire.
ReplyDeleteInvesting in money now could really benefit teenagers and even young kids in the future in a good way. If your ever needing money you have money to spend and use to help you stay on your feet. Even when you are older you have money to fall back on so you don't have to worry about working at the age of 80. I honestly never really knew that investing would help me this much, especially at this age, I always talk about saving money not investing in it.
ReplyDeleteI definitely agree that investing must be started early. While there are risks that come from investing, it is great to invest early for retirement. I'd have enough money for retirement.
ReplyDeleteIt is true that we have been talking about saving early all semester so far. I love that you talked about this again because there is a reason why we talk about this over and over, so it is worth it to talk more about saving early. This is very important so that we can get a head start like you said. This gives us more money over time and though we might not have as much to spend in our young and fun years, when we are old and want a vacation, we will be able to go on one or many. Saving early is probably the number one tip I would give any young person and can greatly impact your future!
ReplyDeleteIts obvious why we should invest for our retirement early, but how can we start saving at an early age is the main question a lot of people have. Some people can't fathom 20 or 30 years in the future so how would we be able to understand investing early. Its one of the things I think about when I save and its more of what is going on now, instead of what is going on 5 years from now is the mentality I figured out people go through. Its just something to think about anyway good job!
ReplyDeleteI agree that it's better to invest early. Although every investment has risks to them, it can be very beneficial to invest prior to your 20's. I liked the various points that were brought up within the article. One of the most important points was that you get a step ahead of everyone by investing early. This is very true and another reason why investing early is a good thing.
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