Why You Should Become a Young Investor
If your asking yourself “Why should I become a young investor” than you’re not alone. Our generation is being pummeled by a tough economy, an increasingly old population, and an education system failing to teach us skills we need to succeed. Its more important now than ever to invest, and to do so early.
Want to know one of the most common misconceptions about investing? That it takes a ton of money, false. It takes a couple hundred bucks to make your first investment, not thousands and thousands of dollars. The very first thing you need to do in order to invest is do a little research.
We live in the information age. We have the luxury of knowledge ; if we have questions for the universe, Google has complied the answers. Do some research. I’ve listed some great resources to get your started but if you don’t feel like listening to me, just google “how to invest”. I promise you it will be one of the best decisions you’ve ever made.
A Few Basic Tips
Okay, so here are a few basic tips to get you going. The path to financial security starts right now. The earlier you start investing the better, start right now.
There are some basic investing tips you need to know about. I’ve already made it a point to mention the importance of starting early. Aside from that here are some other basic tips you need to know.
- Think Long Term
That whole get rich quick thing, probably not going to happen. But you can live a comfortable life now and more importantly later on by investing some money. Think about the end goal here. I know we are young and our prefrontal cortex hasn’t developed all the way so we want immediate results. Fight the urge, think long term.
- Put Multiple Eggs In Multiple Baskets
The financially savvy term would be “diversify your portfolio”. What this really boils down to; avoid putting all of your cheddar in one spot. If you invest all of your savings in high risk stocks your just asking for trouble. Having said that, don’t be afraid to take the occasional risk. Being a young investor means we aren’t burdened with the responsibilities (dependents, mortgage etc..) that our older associates are. If you want to invest a portion of your money in a high risk account I say go for it.
- Do It Right Now
I don’t think I can stress the importance of investing right now. Compounding Interest is one of the most powerful forces in the galaxy. Warren Buffet, one of the richest dudes on earth, is worth $60 billion. Of that $60 billion, $59.7 was added after his sixtieth birthday because of compounding interest.
Well thats it for right now. Tune in next week for Part 2.