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Top Reasons to Start Investing at an Early Age

2021-05-18
2 Min Read
1.9 / 5.0
Author - Vinod Sharma
Top Reasons to Start Investing at an Early Age
579 views

When we are in our 20's, we are stuck between college and friends. We feel we have ample amount of time in life to think about our finances. And before we even realise it, we are in our 30s, busy hustling and managing other priorities of life, and time goes by. We believe that it is never too easy to start investing. But, the earlier we start, the better it is for us. In fact, research and studies show that the earlier we invest, the richer we get. You might be wondering the logic behind it, so let us explain.

Imagine you are in your 50s trying to plan for your retirement. You are low in your finances, and you do not really know how to go about it. You suddenly remember that you invested some amount during your high school or college because a friend of yours compelled you to invest. And now the investment of ? 3000 has turned into ? 48,530. Well, how? You should be thanking compound interest for this. Compound interest is the interest that is paid both on principal and interest from past years. For example: If you invest ? 100 today in Fixed Deposit, and if you receive 10% interest on it, the amount at the end of the first year turns out to be ? 110. Similarly, for next year, you will receive an interest of 10% on 110 and not on 100. And this goes on until you realise that you have earned quite a good sum that can help you when you find yourself struggling with finances. Investing early has many other advantages too.

Advantages of Early Investment

More savings

You develop a habit of saving more by investing early. And the more you invest, the more you will get in the future, which is nothing but your savings. You can cut the cost of extra spending and use that amount in high return investment options and start earning more.

Additional Read: Check Best Saving Schemes

You learn by doing

While investing at an early age, you get the liberty to learn and understand how the investment world functions. You have the flexibility and the time to study the best investment options and learn from your failures and successes at an early age itself.

Additional Read: Compare Fixed Deposit Rates

Better risk-taking ability

There is an old saying that goes by, More the risk, more is the reward. Young people with years of learning ahead of them can take a chance to have more risks than their older counterparts. The risk-taking ability then becomes a part of who they are.

More recovery time

Even if you fail to invest the right amount at the right place, you have more time to make up for the loss in investment. In contrast, an investor who invests later in life will get less time to recover his losses.

Bottom Line: So, what are you waiting for? There are multiple saving schemes available by the government and banks where you can invest and grow your money. Explore all the investment options, choose the best scheme, invest at an early stage and reap all the benefits of an early investment. dsfsdfsd fdfdsfds fdscvfsd fdsfds

About Author

Vinod Sharma
Vinod is an experienced Content Writer and you will find him often engrossed in reading marketing and finance blogs. He is hardworking and determined to achieve what he wants. In his free time, he likes creating memes and watching cricket.

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