Time isn’t always in your favor so start investing now. A lot of young adults hesitate to invest because they feel that it takes a ton of money to start and grow an investment. This fear is unfounded and shouldn’t stop you from doing it now.
Saving vs Investing
But before taking the leap, be aware that investing is totally different from saving. Saving won’t bring you wealth, but anytime you need funding, savings are a ready source of cash. Savings account, checking account, and time deposit are examples of this category. Meanwhile, investing is riskier but the higher the risk the greater the return. Mutual funds, stocks, and bonds are some investment vehicles you can avail of.
The beauty of investing now
Why start now? The earlier you do it, the sooner you’ll realize the power of compounding. Say you are 30 years of age right now and at 8% yield you were convinced to start investing $10.00 weekly without fail. By the time you reach 65, your money would have ballooned to about $99,000. Now that’s a sound investment. But what if you had started a decade earlier. At 20 years of age, you have invested the same amount weekly at the same expected yield. By age 65, your money would have been close to $229,000!
Seeking the help of an expert
If you have decided to invest now, it is wise to seek the expertise of a financial adviser. While not really necessary, a financial coach can help you map out a plan towards your financial objectives, research for good investments, and help you earn profits from them.
When you’ve found a potential financial adviser, do not hesitate to raise questions. Start with asking about his work and experience in the field. Ask how he charges fees. Currently, advisers would either charge based on the aggregate assets he is managing for you or simply ask for a commission.
Investing while still young gives you an edge over the others who opt to start later in life. You gain financial freedom earlier than the others. You can even retire early because you’ve started investing at a time when others are still taking th