7 Reasons Why One Should Start Investing from Their Teenage

Spending money gives incredible satisfaction, particularly if you start earning at an early age. The young blood will make you spend money on new dresses, new bikes or new gadgets as new things will fascinates you at that time and if someone advises for saving at this stage , the instant reaction comes, we are too young to save now because we are full of energy, excited, want to do lots of fun, and always chase the shiny objects.

But is this statement correct? Or we are merely overconfident!

Well, I think we are overconfident.

No one knows when the thunderstorm of uncertainty will hit, and destiny is something that is not trustworthy, it has its way of dragging the rug under your feet. We must prepare ourselves for those dry days no matter how young or old we are.

Here are seven reasons why you should start investing at an early age.

1.Putting your money in various investment at an early age makes you responsible for your actions. You come to know and understand your assets and liabilities better.

2.You will come to know how to plan for your finance which is one of the critical factors to become successful in your life.

You create a budget and set goals on how and where to invest because that money will keep on compounding every year.

3.Young people have the added benefit of getting extra time to understand and learn about their mistakes and regain from losses. You keep on learning from experiences which helps you to become a better investor soon.

4.Younger investors can resist more risks and efficiently earn more returns from their investments. They can understand the risk-return tradeoff effectively, which gives them more returns. As you are young, you do not carry a baggage of obligation, hence never afraid to jump into the pool of high risk.

5.They can able to learn about financial discipline by deviating their extra money towards the path of investment. Hence no wastage of money and one will respect money. This step is highly crucial in every stage of life. There is no extra money left to waste. You learn how to limit your cravings for shopping, partying, or anything that is not necessary.

6. Investment at an early age will provide financial freedom during your retirement. As if start earning and keep it so early, it keeps on compounding at a faster rate.

7.You learn about patience and never take things for granted: You can find often the stock markets are turbulent and shaky, such things make you strong to deal with future imbalances. In such situations, don’t do anything watch don’t get a panic attack, and shortly, you will learn from your experience and will never fear to take risks and learn how to keep patience when such things happen. Like the pandemic spooked the whole world and it was uncertain. This invisible enemy can send the market down by more than 30% in just a few days, and these things are not there in our hands.

Invest today to lead a happy, burden-free life in the long run. Apart from that, invest in yourself read books, learn new skills, empower yourself with knowledge because that will also pay you off in the future. Focus on learning business, stocks, and real estate. You have enough time to learn, invest in those categories that you understand better. Hedge fund manager Bill Ackman says mandatory investing accounts for every US child could combat wealth inequality. Many billionaires believe in early investments.

Suchismita Pradhan

I am an accountant by profession, co-author of the novel,Aggregate50 and a creative writer who draws inspiration from daily life and tries to look at a situation from different perspectives

3 thoughts on “7 Reasons Why One Should Start Investing from Their Teenage

  • December 2, 2020 at 4:27 pm

    Some valuable insights. Investing early helps in the long run for making a huge corpus.


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