If you’re wondering why do you think so many adults wish they’d started investing earlier, you are not alone. The truth is that investing early seems to be the best way to accumulate long-term income. That’s because you are getting compound interest, which adds up overtime. Not only that, but if you start investing early, you can still learn, adjust investments, and the return can be excellent.
What’s the ideal time to invest?
One of the challenges that comes from investing is that every person has different goals. Some people want to work on their careers; others focus on establishing a family. So, why do you think so many adults wish they’d started investing earlier? Because if you invest early, it gives you ample time to improve your budgeting and financial skills. You can figure out the right way to retire, and investing becomes much easier.
When it comes to the ideal time to invest, it would be during your 20s. The earlier you invest, the better, because you have more years to accumulate compound interest on your investment. Of course, there are other things to consider.
Before investing, create an emergency fund
Before you start investing, you want to focus on having an emergency fund set up. The emergency fund should cover around half a year to a year’s worth of living expenses. That way, even if you get laid off or there’s no income coming for a while, you still have money to survive. Then, you can think about investing.
What should you invest in during your teenage/young adult days?
- One of the first things you can invest in will be mutual funds and ETFs. These have great compound interest potential, and you won’t lose any money on them; the value will only go up.
- Stocks can also be an option, but it’s a good idea to educate yourself on how stocks work. You can try to invest in the most popular stocks to avoid major losses.
- Fixed-income securities can also be a solid investment since they involve a lot less risk.
- Cryptocurrency investments were quite good for some people, but obviously they are not for everyone. It can be an idea, but you always want to educate yourself when it comes to any volatile investments like this.
Closing thoughts
So, why do you think so many adults wish they’d started investing earlier? The earlier you invest, the more interest and benefits accumulate over time. So it’s easy to see why people wish they invested earlier in life. However, there’s no time like the present. You can still invest right now and make good money, so make sure you create an emergency fund and start investing today!
