Start today! 5 major benefits of investing early
The following article is an initiative of NSE and is intended to create awareness among readers
April 11, 2018 / 06:43 PM IST
Inculcating some habits in early stages of life pay-off in the long term. One of these habits includes managing finances. Saving and investing are two important aspects and the early you begin, greater is the potential to generate wealth and lead a comfortable life.
Having said that, financial planning isn’t easy. It involves a lot of discipline and patience. But, once it becomes a routine for you, there’s no looking back. Improved saving, investing and spending habits have a number of benefits. However, these benefits are overlooked by many young adults and they postpone crucial financial decisions to another day.
If you are still not convinced that investing early is a good opportunity, here are five clear benefits of it:
- Grow your money: People invest to grow money. If you start the investing process early, say in your twenties, you can see the magic of compounding. Your money will grow exponentially and you will get the results over time.
- Passion: If you are passionate about opening a business, going on exotic vacations or buying latest gadgets, you’ll, obviously, require money. By investing in early stages of life, these short-term goals become easy to achieve.
- Education: You’ll be able to fund your higher studies. Your dream of studying abroad, in top-notch universities, can turn into a reality.
- Time: In your 20s, you have a lot of time, less responsibilities and expenditure. You should keep yourself under a budget and focus on saving. Remember, longer you put your money to work, the more wealth it will generate.
- Retirement: When do you wish to retire? If your goal is to retire in 40s and 50s, you will to invest and even diversify. You will need a lot of money to spend post-retirement. Diversify your investments and see the magic of compounding work.