05 Aug Beginning Investors: The First Step
Pop quiz: Investing is something that…
A) is for wealthy people, investment bankers, and hedge fund managers
B) something that you’ll get into later in life once you have more money saved up
Trick question! The correct answer is that investing is neither. You shouldn’t – let me repeat this, you should not! – put off investing until you have some arbitrary large amount in the bank. In fact, waiting too long will not let you take advantage of the most powerful property of investing: the fact that your money can compound over time. The more time your money spends in the markets where it can grow, the better.
If you start investing as soon as possible, even with a small amount like $1000 in savings, your results could be drastically different than if you wait ten, twenty, thirty years and start with a larger amount. Retirement may seem far away, but it’s critical to begin preparing now. Investing will also help you achieve your other financial goals along the way.
It’s important to realize that your investing journey absolutely can begin with a single step. Resolve to start where you are, and utilize the fruits of your budgeting labors to start laying the foundation for a happy and healthy financial future.