When am I going to start investing? That’s a question asked by many people who are in their early 20s or mid-20s. Most people associate investing with old people and it’s true that it is not uncommon to see grandpa with a high cap or top hat, or an uncle searching for 1 gram gold rate today Bangalore to make investments. See more. But there are definitely advantages to starting investing early. You will be surprised to know how much easier it is for kids these days to make savings. Maybe it wasn’t this easy when you were growing up. You had to work by manual labor just to get pocket money after all. Your incomes grow as you grow older and that is one of the main reasons why you should start investing early in life. Here are some more reasons why.
Here, we’ll provide reasons why you should begin investing in your early or mid-20s as that is the best time to start a habit of saving and investing
You can start small
If you start investing young, the amount you must invest is small compared to if you wait. You don’t need to just start looking up today’s gold rate in Warangal or any other city and then spend money to buy gold. You can start investing with something cheaper. You have more years to save, which can reduce the amount you need to save each month. This means you can use the power of compounding returns even if you have a low net worth. The longer time period of investment also means that your investment behavior can change with time. Additionally starting your investment journey young, makes it very easy to build a solid portfolio over the years.
It will build a good spending habit
If you become disciplined enough to regularly invest a fixed amount of money then this will automatically curb your bad spending habits. This is because you will be obligated to spend your extra money only on your investments and premiums.
At a young age you don’t feel rushed or pressured, so there is a letter chance of making mistakes. Younger earners have fewer financial responsibilities, allowing them to take greater risks with their money than someone closer to retirement age. You won’t be panicked into selling low and buying high.
Gather a large corpus
If you start investing in your 20s and keep investing regularly, you will be able to accumulate a larger corpus of stocks thereby increasing your chances of success.
You get to enjoy compounding
you enjoy the benefit of compounding. Compounding means that the interest earned on your interest is reinvested to earn even more interest in future years. This means your money can grow faster over time than if you were to invest it later in life, when you might have less time for your money to grow. Investing is like a snowball rolling down hill; at first, it’s slow and tiny, but as it gains momentum, it grows. The older you are and the more you invest, the larger your snowball will be at retirement.