5 Ideas/Reasons why to start Investing Early

Investing : To invest is to allocate money in the expectation of some benefit in the future.

You can’t create a duplicate of yourself to increase your working time, so instead, you need to send an extension of yourself – your money – to work. That way, while you are putting in hours for your employer, or even mowing your lawn, sleeping, reading the paper or socializing with friends, you can also be earning money elsewhere. Quite simply, making your money work for you maximizes your earning potential whether or not you receive a raise, decide to work overtime or look for a higher-paying job.

 

 

I think everyone has heard of the name Warren Buffet before, if not heres a quick look at what the ‘King of Investing” has earned over the course of his entire lifetime of investing.

Warren Edward Buffett (born August 30, 1930) is an American business magnate, investor, and philanthropist. He is considered by some to be one of the most successful investors in the world, and as of March 2017 is the second wealthiest person in the United States with a total net worth of $78.7 billion.

1. The Stock Market  

 

The stock market refers to the collection of markets and exchange where the issuing and trading of equities (stocks of publicly held companies), bonds and other sorts of securities takes place, either through formal exchanges or over-the-counter markets. Also known as the equity market, the stock market is one of the most vital components of a free market economy, as it provides companies with access to capital in exchange for giving investors a slice of ownership.

“The early bird gets the worm”

  • Buy low, sell high!
  • Most potential in growth and anyone can buy stocks!
  • You can choose U.S Stock, Foreign stock, bonds, etc.

2. Compound Interest (Savings Account) 

Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words,interest on interest. It is the result of reinvesting interest, rather than paying it out, so that interest in the next period is then earned on the principal sum plus previously-accumulated interest.

—“The best time to plant a tree was 20 years ago. The second best time is now.” – Chinese Proverb

  • You could be missing out on free money!
  • 10% growth in a savings account can add up BIG TIME over the course of years.
  • The longer it stays in, the bigger the gains!

3. Real Estate

Real estate is property comprised of land and the buildings on it as well as the natural resources of the land including uncultivated flora and fauna, farmed crops and livestock, water and minerals. Although media often refers to the “real estate market” from the perspective of residential living, real estate can be grouped into three broad categories based on its use: residential, commercial and industrial. Examples of residential real estate include undeveloped land, houses, condominiums, and town-homes; examples of commercial real estate are office buildings, warehouses, and retail store buildings; and examples of industrial real estate are factories, mines, and farms. Real estate is one of the biggest investing strategies to get started early in.

  • Monthly Cash flow straight to your pocket
  • Being a land lord has its perks of tax benefits!
  • Real Estate is a great long-term investment that can set you up for retirement!

4. Tech-savvy

Millennials have grown into the workplace in a time of economic strife, so it’s no surprise that they are skeptics when it comes to money. You’ll be hard pressed to find many willing to partake in get-rich-quick schemes and overly risky stock market gambling. Millennials are also skeptical of financial institutions. As they transition into adulthood, more than half say their parents were the most influential on developing the way they view money. In fact, when seeking investment advice, Millennials are most likely looking towards their parents.

  • iPhones, computers, and laptops have made investing easier to do
  • Online resources of information, to be better decision maker with your money
  • Trading Apps, resources, media, news etc.

5. Retirement/401(k)

A 401(k) is a retirement savings plan sponsored by an employer. It lets workers save and invest a piece of their paycheck before taxes are taken out. Taxes aren’t paid until the money is withdrawn from the account.

  • —Retirement may seem far away but not as far as you think!
  • —401(k) has a tax advantage
  • —35% of Americans after retirement depend ONLY on social security checks
  • —With a 401(k) plan, money is always invested and making more money

 

Conclusion

—Investing can help you achieve your long term financial goals! Although retirement is a long time away, investing is more important than you think. It is better to have a mix of stocks and bonds, and even perhaps real estate, natural resources and commodities. You sometimes have to risk it for the biscuit!

Other Sources:

—http://www.pewsocialtrends.org/2007/01/24/ii-saving-spending-splurging/

—http://money.usnews.com/money/personal-finance/mutual-funds/articles/2014/06/16/why-arent-millennials-investing-fear-isnt-the-only-factor

—http://www.thesimpledollar.com/seven-reasons-to-start-investing-right-now/

—https://www.equities.com/news/five-reasons-millennials-need-to-start-investing-now

—http://money.usnews.com/investing/articles/2016-03-22/why-college-grads-should-start-investing-now

—http://www.cnbc.com/2016/03/04/cramer-young-investor-heres-where-to-start.html

 

 

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22 thoughts on “5 Ideas/Reasons why to start Investing Early

  1. This listicle is amazing! It really teaches you how experience and intuition are really important for investment. The earlier you start, the more you will have an understanding of the market.

  2. I really enjoyed this article because I believe that investing is one of the best ways to make money! If you play your cards right you can end up filthy rich by the time you’re 40 years old.

  3. I think this is a great topic. There is a lot of people that are interesting in investing and making a lot of money. However, there is not so many people that know how to do so.

  4. A lot of really good thoughts and tips about how to invest money and save for retirement. Great job!

  5. Great article to get us thinking about investing early. Investing is definitely a learning process and learning early on is great advice for us all!

  6. I thought this was a tremendous article. I never really thought about investing until I read this.

  7. I have always been intrigued by the idea of investing in stocks and real estate and this listicle lays out clear reasons why it is beneficial.

  8. I’m also glad you spend time talking about how 401k works and compound interest, there’s thousands of ways to become a millionaire!

  9. I think that most of these ways for saving money are commonly known. However, that doesn’t mean people necessarily know how to invest into these things. This listicle is a good starter point for teaching people what to do.

  10. i have a better idea because i’m familiar with this topic. With stock go micro with the idea and stat the four topic like common stock, options, futures, forex. the reason is bonds don’t bring a high return as well with compound savings. Next be aware of about real estate that you can have high expenses. I have talk to other real estate investor that lost a good amount so with a trusted partner. lastly, for a retirement account talk to a cpa to understand options with self defer 401k and roth ira for tax advantage. I like this article but I would go more in detail.

  11. I believe that investing your money wisely into major purchases is the best thing a consumer can do. Not only are you prepared for big things in your life, but there are no worries. One major one is a 401K. Or even investing into realestate. Many individuals don’t realize the importance of low debt. Awesome job!

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