No matter your age, no matter how much money you have at the moment, you should start investing right away.
It’s easy to learn – everything you need to know is on the web. There are simple strategies to get started right away. And the earlier you make investments, the larger they’re able to grow.
Don’t put investing off any longer. Here’s 4 reasons why you should start investing immediately.
1) You Get Extra Money Without Doing Extra Work
If your company offers a 401(k), they likely offer an employer match program. This means they will match a certain amount that you may put into your 401(k).
For instance, a popular employer match program is 100% of the first 5% of your salary that you invest. So, if you always invest 5% of your salary into your 401(k), your employer will add another 5% into your 401(k) – without subtracting from your regular pay!
All employer match programs are different, but this is a no-brainer. They’re doubling the amount you save, and you should start taking advantage of this right away.
2) Your Early Mistakes Won’t Haunt You
People are afraid to do something new because they don’t want to mess up. This is especially true in investing, because money is on the line.
In reality, for about the first 10 years you spend investing, the results won’t make a big impact on you.
What matters is that you start saving right away. This is because, even if you only make small gains, they will add up over time. So, even if your investments don’t make much, these small profits add up to big numbers as the years go on.
The best example of this is compound interest. If you invest a thousand dollars this year, and make ten percent, you make one hundred dollars. In other words, you now have eleven-hundred dollars.
Now, even if you don’t add anything to this investment next year, it will still rise to one-thousand, one-hundred and ten dollars – because of that one hundred you made the year before. As the years go on, it will still continue to grow. This is why you need to get started as early as possible.
3) It’s Not Hard to Get Started
Some people think investing is only for the rich. Some think you need to go to school for years to get started. Some think it’s a full-time job. It’s none of those things, and it’s easy to get started.
For example, you can get started with your 401(k) that was talked about in the first point. This doubles your savings without you doing anything extra. You can also open an Index Fund account at places like Vanguard or Betterment. These accounts give you ownership of the entire stock market, instead of just one stock. As long as the majority of stocks rise in price, your account rises in price! The good news? These accounts average an eight percent return each year.
These are two easy ways you can get started right away.
4) Your Investments Can Be a Lifesaver
For decades, many Americans would rely on Social Security or pensions when it came time to retire. Well, these options aren’t as reliable anymore. Many experts estimate that Social Security will be gone in the next twenty years. Something similar could always happen with pensions.
If you start saving now, your investments can support you in retirement if these other resources fail. By starting early, small investments will be able to grow and help you to have a stress-free retirement.
You may not be able to change the choices you’ve made up to this point, but you can change your future. Even if you’ve put off investing for years, you can easily get started today. And it’s important you do so, because the longer even the smallest investment has to grow, the bigger it will get. And these small, simple investments are not only easy to start – but can save you from issues with government programs in the future.
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