Emma Sturgis https://www.monorail.com 2m 471 #investing
The views of this article are the perspective of the author and may not be reflective of Confessions of the Professions.
Whether you’re just starting to explore your career options or you’ve already got one foot in the door, getting into investing while you’re young can be a great way to set yourself up for success in the future. Investing puts your money to work for you – and the earlier you start, the more time your investments have to mature. Here are some of the major benefits of getting into investing while you’re still young.
Compound Interest Works in Your Favor
Compound interest is often referred to as “the eighth wonder of the world” because of its power to turn small investments into big ones over time. Compound interest is when an investment earns interest on both its principal and any accumulated interest from previous periods; this means that even if you put aside a modest amount each year, it can still grow with compound interest over time. The sooner you start investing, the more time your money has to compound – so why not get started now?
You Have More Time To Take Risks
As a young investor, you have more freedom to take risks with your investments than older investors do. That’s because you have more time on your side; if something doesn’t pan out, there will be plenty of other opportunities down the road. Plus, taking risks can lead to high rewards – so if you invest wisely and are willing to take some chances, there could be some lucrative payoffs in store for you in the future.
You Can Invest on a Budget
Investing isn’t just for those with deep pockets; even if all you have is a few extra dollars at the end of each month, there are plenty of ways for young adults on a budget to get into investing. For example, many brokerages offer fractional shares which allow individuals to buy pieces of stocks or ETFs (exchange-traded funds) instead of having to purchase them at full price. This makes it easier for people with limited funds to participate in stock markets without having a lot of risk involved. Additionally, many online brokerages offer commission-free trades which make it easy and inexpensive for anyone (even those with small budgets) to start investing today.
Making smart investments now can pay off huge dividends down the road – but only if you actually get started. As a young adult with plenty of time ahead of them, now is an ideal time for anyone looking to start their journey into investing. If you are interested in getting started, research more info to find an app to help you. With fractional shares and commission-free trades available at most online brokerages these days, investing doesn’t have to be intimidating or expensive – so why wait? Get started today and reap the benefits later!