Thinking, you are too young to invest! -

If you think starting an investment is only for the richest or well-earning people, then it’s time to think again.

There is a misconception among young people worldwide that investing is only for the wealthiest people. They think they must wait until they have a lot of money or skills before they can start investing. Nothing is further from the truth—and in reality, the earlier you begin your investment journey, the more you stand ahead.

Despite beginning in the early stage of your career or earning stage, you have a secret formula when we talk about building wealth – and the formula is only TIME. That wise say: Time is Money. By harnessing the power of compound growth and creating good financial habits now, you can lay the foundation of financial freedom.

Now, I am giving some the powerful reasons why you should start investing in your early earning life.

You can start with Small

There is a perception that you must have a large sum or a high income before acquiring wealth. Wrong, here is the calculation-

Let’s take an example: Someone plans to retire at 60.

Calculation of for three life stages-

Start at 25 years of age, 5000 per month, for the next 35 years, at just 8% (assuming) rate of interest, then total corpus = 10,781,764 (One crore seven lakhs eighty-one thousand seven hundred sixty-four rupees only)
Start at 35 years of age, 10,000 per month, for the next 25 years, at just 8% (assuming) rate of interest, then total corpus = 91,48,394 (Ninty one lakh forty-eight thousand three hundred ninety-four rupees only)
Start at 45 years of age, 20,000 per month, for the next 15 years, at just 8% (assuming) rate of interest, then total corpus = 67,95,569 (Sixty seven lakhs ninety-five thousand five hundred sixty-nine rupees only)

Now, if you start late, then you need to invest more—actually double or four times the money, but the corpus is still very low. That is the power of compounding. As Elbert Einstein said, the Power of compounding is the eighth wonder of the world.

You build a habit of financial discipline.

Investing is a very powerful tool for instilling good financial habits that will benefit you for a lifetime. When you prioritize investing over spending, you become more mindful of your income and expenditures, leading to better budgeting for the rest of your life and aligning money with your financial goals.

Starting this process will develop good discipline and financial skills for a great financial life.

You can take more risk(calculated).

As we know at the young age we have long number of working years, so that we have plenty of time do have some experiment mean mixing available asset class.

As a young investor, you have time to recover from market downturn, some of poor decision etc. When retirement is still decades away then you can afford more risker investment for better return, as we know the take more risk can get more return.

You get to harness the full power of compounding

When you invest the money and reinvest the growth, you not only get a return on your original principal value but also benefit from the return earned on the interest component. Remember: interest on interest.

Although the cycle repeats every month, it creates the compounding effect, where your money grows exponentially over time so that even a small amount invested consistently makes the corpus bigger and bigger.