Investment Advice: 5 Good Reasons to Invest Early

Whenever we talk about investment, we associate it with the people in their mid 30’s and 40’s. However, the reality is much different than this.
Image Courtesy: Penny Stock Investments
#Truth about investment
The truth is, investments are good if initiated from a very young age. One mainstream benefit of investing for youngsters is that the investment gets more time to grow. You gain more compounded interest on the principal invested sum. How? People in their mid 20’s and early 30’s have limited financial responsibilities. They have lesser needs and lesser people depend on them financially. So, they won’t be needing any money for next 10-12 years and interest amount will keep adding to the investment with time.
Along the aforementioned facts, there are other good reasons to start investing early.
  1. Time is on your side: As you must have realized by now, when you are young you can save more by compromising your needs and controlling unnecessary expenses. This won’t remain so after a few years, time will change everything. You will have people depending on you. You will have children and you have to plan their lives as well. So, when you are young, you have the command of your life and earnings. Take it in the right direction and make the most of it.





Image Courtesy: pastorswallet

  1. Emergency prepared: With a reasonable amount invested, you’re partially prepared for the unanticipated financial crisis and emergency situations which might occur later in life. Let’s say you’re planning to get married and you know you need money. We all know, marriage is a costly event and one has to have a decent saving before even initiating talks about marriage. So, where are you going to arrange funds? Here you are, realizing the importance of savings. Saving early is good. You don’t have to stress yourself about how to arrange money, use your investments. Also, investments turn out to be a blessing when you or your family member is in a life-threatening situation.
  2. Financial asset: By investing early you’re rewarding yourself with financial assets that you can encash later for all your big-budget plans. Also, you can use these financial assets as a part of retirement savings. Post-retirement you will come across many situations demanding a lot of money. With your investments, you’re prepared already.
Image Courtesy: Banking
  1. Better Credit Worthiness: Investments from an early age improves your creditworthiness.Your creditworthiness is how eligible to take a loan. How well can you handle your finances and repay your loan. This wouldn’t make sense to you right now, but you will understand it while applying for a loan. Better creditworthiness improves your credit score and helps you secure loans easily.
  2. Collateral: As we progress in life our needs increase. Even the basic survival needs like a family home, a car for transportation and other articles for comfortable life costs money in bulk. Not meeting these needs might cause difficulties in survival. Thus, a huge amount of money is needed, which is only possible through a purpose-specific loan. Now, your investment bonds can act as a collateral in your loan application, which improves the chances of your loan getting approved.

Bottom line: Investments, as with anything in life, benefits from an early start. The earlier you start planning your retirement, the greater your potential return on investment you will gain. I hope this helped you in any manner. Happy investing!!