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Four Reasons Why You Should Start Investing Early

Many people delay investing for various reasons such as market uncertainty, the desire to increase earnings, or the need to become an expert in investment strategies. However, starting early is crucial when it comes to investing, and there is no need to be a market expert or a Wall Street tycoon to begin investing. So, if you have been hesitant about investing, now is the best time to start and we will explain why?

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Four Reasons Why You Should Start Investing Early

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  1. Four Reasons Why You Should Start Investing Early Many people delay investing for various reasons such as market uncertainty, the desire to increase earnings, or the need to become an expert in investment strategies. However, starting early is crucial when it comes to investing, and there is no need to be a market expert or a Wall Street tycoon to begin investing. So, if you have been hesitant about investing, now is the best time to start and we will explain why? We understand that procrastination can be a major roadblock for many people when it comes to investing. However, it is important to note that starting early can have significant benefits in the end, regardless of your expertise in investment strategies. So, do not feel like you need to be a financial expert or a seasoned Wall Street investor to get started on your investment journey. Here are 4 reasons to help you get started: It is all about TIME! Remember, investing early is crucial, as time in the market is more important than timing the market. Delaying your investments can end up costing you

  2. more than you realize. The earlier you put your money to work, the greater the long-term benefits will be, especially since you have many earning years ahead of you. In addition, if you start investing at a young age and suffer a loss, you have more time to make up for it. In contrast, someone who starts investing later in life will not have as much time to recover losses, especially with more assets and responsibilities at stake. Therefore, with early investments, your money has more time to grow in value. Having time on your side also brings us to the next point... You Have Greater Flexibility As you have more time to recover from any losses, you can afford to take on more risks with your investments. This also provides you with greater flexibility to experiment and explore various investment avenues, which in turn enhances your overall financial decision-making skills. As they say, practice makes perfect, or at least close to it, in the investment world! Furthermore, avoiding any form of risk can also be a risk in the long run. Therefore, it's important to take calculated risks and try out different investment strategies while you have the time to learn and adjust your approach. As people get older, they tend to become more conservative with their investments, which can limit the variety of asset classes available to them. While being cautious is understandable, it can also limit your potential for higher returns. That's why starting early gives you more room to experiment and broaden your investment portfolio, allowing for potentially greater rewards. You Can Leverage The Power Of Compounding Compound interest, compounding, or simply magic! Different people use different terms to describe the phenomenon that happens when you invest early. Through compounding, you can fully maximize your returns, as it

  3. involves reinvesting the returns from an asset to generate more earnings over time. This means that the investment will generate earnings from not only its initial amount but also from the accumulated earnings from the preceding time periods. By investing early and allowing your investments to compound over time, you can potentially benefit from a much larger return on investment than if you wait to invest later in life. Compounding is like a snowball rolling down a mountain, gaining more snow and increasing in size with each roll. As it becomes larger, it accumulates more snow and grows at a faster pace. The same goes for your investments. When you reinvest the returns you earn, your initial investment grows, and in turn, generates even more returns, leading to a snowball effect of growth over time. Let us take a practical example to understand the power of compounding better. Suppose you invest $1,000 this year with an annual return of 10%. This investment would earn you $100, which means your investment's value would increase to $1,100. Now, even if you don't invest anything the following year, and you continue to earn the same 10% return on your investment of $1,100, you would earn $110 in the second year, not just $100. That's because you're earning a return not only on your initial investment but also on the accumulated earnings from the previous years. As a result, at the end of the second year, your investment would be worth $1,210, all thanks to the power of compounding! Investing early, consistently, and over a long period of time can lead to substantial returns. The longer your money has to benefit from compounding, the greater your returns will be over time.

  4. You’re Able To Support Your Goals (And Retire Early! Starting your investments early gives you an advantage in building wealth and achieving financial freedom sooner than those who start investing later in life. Additionally, having investments to fall back on during challenging times, such as unexpected expenses, can be incredibly beneficial. At some stage in life, retirement is inevitable, and it is reassuring to have created another source of income through investments made over the years. Investing can help you achieve the financial security that we all desire, and there's no better time than now to begin. It is widely agreed that it is better to start saving for retirement in your 20s than in your 40s. Therefore, investing early can help you establish a secure future for yourself. Wrapping Up Investing early in life is critical, and the old saying, "the early bird gets the worm," certainly applies. While it's always advisable to conduct your own research, establish an emergency fund, and seek professional advice as needed, don't be afraid to invest when you have the opportunity. You don't want to miss out on the chance to grow your wealth, so don't sit on the sidelines waiting for the perfect time. By investing early, your money will have more time to mature and grow, especially if you maintain strong discipline and consistency. If you're considering making an investment in the USA but feeling uncertain about how to begin, there are several platforms that can make investing easy and accessible for everyone. One such platform is vairt, which is a real estate crowdfunding platform based in the US. By investing in real estate through vairt, you can start building wealth early on.

  5. Additionally, real estate investments offer diversification opportunities, allowing you to spread your investments across different properties with smaller capital amounts and lower overall investment risk. You don't need to be concerned about losing all of your money by investing in a single property since consistently investing small amounts in several properties is much less risky than investing in real estate through traditional methods. Thankfully, investing in US real estate has never been easier or more convenient, thanks to platforms like Vairt, a real estate crowdfunding platform based in the United States. To begin accumulating wealth at a young age, investing in real estate through Vairt's crowdfunding platform is one method. Moreover, investing in real estate allows you to diversify your investments across various properties, minimizing your overall investment risk. Signup on Vairt investment portal today for the ultimate real estate crowdfunding experience!

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