Benefits Of Starting Financial Investment Early
A few days back, I read the biography of one of the top world's billionaires and how he started his financial journey. I was surprised when I read that he made his first financial Investment at the age of 8 when he bought a little stock. At that age, a lot of other children have not been taught about the financial world but for him, he already established his presence in the financial world at that age. No wonder at this present time, he has amassed massive wealth to him name. Obviously, having an early financial investment in one's life is advantageous and we shall take a look at the benefits.
The first point to look at is financial stability. There is a financial stability that you attain when you start investing early. This is because when you invest early and maybe have multiple streams of investment, it will lead to multiple streams of income, of course, you will begin to make profits from them. The more investments you have, the more your financial stability and the more you move out from the risk of having financial instability. This goes to prove the words of one of my friends; "you cannot depend on salary and hope to be rich, you need investment to be rich."
Furthermore, starting your investment journey early in life helps you to develop the required financial discipline that you need to sail the world of finance. Of course, if you have a target of how many percentage of your income to invest, it will keep you focused on the target and prevent careless expenditures because you will develop financial discipline to match your financial target. You will agree with me that when you develop an investment mentality, you will see yourself effectively prioritising the way you spend. You will even favour investment over spending on your wants. Of course, no sane farmer will consume his seeds because of his wants. Seeds are to be planted - or invested in this context.
One should also know that there is no age too early for investment and there is nothing too small to be invested. Right from your financial level at the moment, there is something you can invest. You must not wait until you have had massive funds to invest before you invest, otherwise you may not invest at all. The small-small investments you do today, over time, you will be surprised how massive they will become. You should also note that you are not to invest what is left after you have spent and saved, the investment should come first before those ones.
Another benefit of starting investment early is that it gives you enough time to make adequate preparation for your retirement plan. Trust me, you will not work forever. Even even you want to, nature will not allow you to, and age will also happen to you. But if you have made adequate plans for it by Investing early, you will have what to fall back on. This is why, when investing, you should not only focus on the short-term goal but also have a long-term investment that you can draw profits from when you have retired from active service.
In addition to the aforementioned, you should also try to diversity the investment even when you are investing early. Obviously, the more diversified investments you have, the lesser the risk of the uncertain. If you centralise all your whole investments into just a single project and it hits south, it will affect you massively. But if you have decentralised your investment into many things, you will limit the risk. Also, before investing, there is a need for you to make sure that you have done your homework well - that is, you need to undertake an indepth and extensive research about what you are investing in and the future it holds for a long term. So that you will invest rightly.
One may ask; what will you be doing between the time you invest to the time you start to reap the benefits? Well, there is a need to add patience to it, while you also invest in other businesses or projects. You have to know that each investment has a different maturity period, so you need to apply patience and know when to start drawing profits, so that you will not end up eating the seeds instead of the fruits.
Thanks for reading
Those who get exposed to financial knowledge and investment at an early age really do not know how lucky they are, it is a wise choice for parents to expose their kids to such deep financial knowledge at a tender age, but for us too we still have the chance to make amends and of course, ensure that our kids begin to invest early.
Well said. Thanks for your valuable contribution dear Bimbo.
Those who get exposed to financial knowledge and investment at an early age really do not know how lucky they are, it is a wise choice for parents to expose their kids to such deep financial knowledge at a tender age, but for us too we still have the chance to make amends and of course, ensure that our kids begin to invest early.
If we can say that it is never too late to start, I think it is also valid to say that it is never too early. A child who learns money management acquires a great advantage and will surely achieve success before many others.