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Home›Self›Goals›Why You Should’ve Started Investing Yesterday!

Why You Should’ve Started Investing Yesterday!

By Maria Bashi
Apr 27, 2016
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If you’re a young adult, then you might see investing as something completely alien. The very word probably conjures up images of decadent stock brokers shouting over one another, or cigar-chomping business tycoons. However, there are many reasons for you to invest, whatever your situation. Here are just a handful of reasons why you should’ve started investing yesterday!

1

One commonly overlooked benefit of investing is its educational value. If you neglect this for too long, then you may end up in a lot of debt. Living beyond your means is never a pleasant experience, so try your best to avoid it! Investing throws you in the deep end, and forces you to understand your financial situation quickly. Once you have a keen understanding of this, how much to spend, save and invest will become much clearer. Ask just a few middle-aged people for financial advice. Many will tell you to start saving as soon as you start getting full-time pay. Nights out and gorgeous clothes may seem like smart buys now. Believe me, that won’t always be the case! The sooner you start saving and investing, the better you’ll be able to manage your finances in the future.

2

If you ever wanted to start a business, then investing could be hugely beneficial for a couple of reasons. First of all, you’ll be able to grow the money you invest, which could soften any start-up costs you have to think about. Secondly, investing will teach you a number of valuable skills every business owner needs. Classes or an alternative investment coach can only take you so far. When you’re investing yourself, you quickly learn a lot of the rules of global economics. Stocks and bonds fluctuate according to the performance of businesses, and the economies of countries. When you invest, every profile you study, every gain and loss will be a part of your education.

If you don’t have any dreams of putting your name on a skyscraper, then investing could help you attain what you do want. A supercar, a cottage on a lake, or a round-the-world trip won’t just fall in your lap. If you have a big goal like this in mind, then investing could be a fantastic way to get it. This is especially true when your invested capital is earning a higher rate of return than your regular savings. If you can maintain this, you’ll be earning more money in the long term. Furthermore, some employer-sponsored investments mean that you can invest using your pre-tax dollars. This means you’ll save more money overall. Whatever it is you’re saving for, consider investment as a route towards it. You may have to deal with people who make money for the sake of money, but you don’t have to become one of them!

If you thought investment was only for a certain type, then I hope this post convinced you otherwise. Although these benefits of investing are valid, they’re just the tip of the iceberg! Do your own research and find out everything it can offer.

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