There are milestones people are expected to have accomplished at a certain age. For instance purchasing a land to build the house you have been dreaming of is considered a long term investment. And you are supposed to have done this by your late twenties, the age when you should have a stable job to be able pay for house loans and everything you need. However, if we are talking about just making investments beyond saving money like mutual funds, bonds and stocks, that is an experience saved for people in their early to late forties demographic.
That is a lie, of course, a misconception that has made the younger generation hesitant to dabble in investment. You can invest in stocks at a very young age, in fact, some people do it during high school, when they start to receive allowances. Investing at a very young age is not only possible, but it is also very ideal given the economic climate that we are in today. All you need to do is diversify your investment portfolio and make smart steps by studying the market.
In this article, we will explore some of the common myths surrounding that needs to be debunked.
There is not enough to invest
So-called financial gurus who have earned millions through investing tell you to jump the shark and not to worry about the money you have in hand right now because it will grow exponentially. There must be something wrong with that statement, right? The thing is, you really need to think about the money you have in hand right now, there is no point in risking it all if you are going to scramble for money just to pay for your daily expenses.
What you can do is to stick to the basics, the safer options. Go for traditional savings, there are lots of techniques to get you saving like the 52-week money challenge. You can also go for fund growing accounts like bonds. These are ways in which you can grow your money while you are also saving up for bigger investment.
Remember, you do not need to have millions to invest, you just need to have enough of it to get started, so do not rush it. Ask a financial advisor about your options.
Not enough knowledge in investment schemes
This is very easy to solve, in fact references can be found anywhere. Being young means you know the power of the internet. A simple Google search on financial literacy lessons and reading up on articles and books will already cover the basics of investing. You can also approach financial experts who can give you unbiased advised, or those whose jobs are to help would-be investors choose where they can put their money on.
Risking the loss of money
Investing involves taking chances, which is why there are countless of material written just for it. While that might make you panic, there are actual ways in which you can minimise the risks and maximise your gains. All you have to do is to make sound judgement, and listen to the people advising you whenever you feel like you need help. You are still young, experiencing losses will be a part of it. But do not let that stop you from investing for your future.
Always learn from your mistakes, a common adage passed along for ages. But there is wisdom in those words, and when it comes to investing, it would smart to heed it. Being young gives you the advantage to create your own investment criteria, one that you will be able to perfect over time. Doing this at an early age, will help you purchase your dream house and land in Brisbane or anywhere you wish and push you to retire early and be the boss of your own firm.