You think investing at your age is not a good idea? Maybe it’s because you don’t yet have the equivalent of a Mayan treasure or the knowledge of a Wall Street wolf… But you don’t need all that to start investing. In fact, the earlier you invest, the better. You can’t believe it? Here are 6 good reasons to invest when you’re young.
Investing when you’re young means taking advantage of a long-term investment horizon
The right decisions should be made now! Because at your age, as the old-timers would say, you have your whole life ahead of you. What if your first decision was to become an investor? Investing when you’re young offers the possibility of investing your money over the long term and accessing investments with high potential gains.
That’s why investing when you’re young is a great opportunity! You don’t need your money right away and you can use it to make it grow over the long term. Thus, the longer your investment horizon, the more you will be able to face market fluctuations and therefore expect a very interesting return.
Investing when you are young means anticipating a future project
You know the saying, “you can never be too well prepared! “. Investing when you are young allows you to anticipate the hard times but also to prepare for the important moments of your life. The purchase of your first car, your first property or the arrival of a baby are moments that you can anticipate thanks to investing. Starting early is the best way to reach your goals and realize your projects.
Investing when you’re young means taking advantage of a period without too many fixed costs
You are just starting out in life, you may not have any children to take care of or a mortgage to pay back… This is the time to take advantage of it! This way you can make your money grow without needing the amount invested overnight. So why not take advantage of it?
Investing when you’re young means taking advantage of compound interest
When you invest, the interest earned is in turn reinvested and generates interest that adds to your initial capital. Thus, the interest is made on the initial investment, to which is added the interest of the previous year. This mechanism produces a snowball effect on the long term, hence the interest to invest when you are young!
Investing when you are young smoothes your entry point
It is difficult to anticipate market movements. By making regular payments, you buy your peace of mind without having to wonder if this is the best time to invest. By doing so, you protect yourself against the common risk of buying when the market is at its highest, and never seeing it rise in value.
In short, the earlier you start, the easier it is to increase your capital! You can start investing small amounts and like a good wine, give your money time to mature. Don’t wait for the right moment, just go for it! To help you, here are some tips for starting out in the stock market