Investing at any age isn’t easy, but waiting to invest when it’s convenient isn't the best option. Don’t fall into the “I need a lot to start” trap. Instead, start investing with whatever you can afford today because it’s going to be worth more tomorrow.
1. Improves saving and spending habits
You develop disciplined saving and spending habits when you start investing at an early stage in life. By focusing on your budget and cutting off unnecessary expenses, you tend to save and divert such saved money towards investment, which in turn earns you more money.
2. The power of compound interest
The power of compounding allows investors to generate wealth over time, Compounding is the ability to grow an investment by reinvesting the earnings. By continuously reinvesting your earnings, you are exponentially increasing your return on investment.
3. Improves risk-taking ability
An investor's age influences the amount of risk he or she can withstand. Young adults afford to build more aggressive portfolios that are subjective to more volatility and stand to produce larger gains. While older adults are generally conservative and may gravitate towards low risk or risk-free investments.
4. Early Retirement
Investing early increases the chances of reaching financial stability at an early age. No one wants to work forever.
Read also : Financial intelligence 101 - Making the most out of the Nigerian economy.
By investing early, you will be prepared to face retirement and any hardships that may arise. You will also have more time to enjoy the luxury of life.
Updated on 6:15-pm June 3, 2023