Many people fail to start making investments because they think that they don’t have much money to start or that they are too young or old to start. It doesn’t matter how much you have or what the market holds for your investment. What matters most is that you should start today.
It’s not really as simple as “start investing as soon as you can.” Investing is a priority, but there are other financial steps you need to take first.
For example, having a fully stocked emergency fund in an accessible savings account is a huge financial priority. You want to have three to six months’ worth of living expenses tucked away.
Emergencies happen all the time, and having the capital to deal with them is a necessity. You don’t want to have to tap into your investments to deal with a car repair or a hospital bill.
Other financial priorities could include paying down high-interest debt. If you have a debt that has a higher interest rate than your investment return, you’re losing money each day you carry the debt. So it works in your favor to pay down high-interest debt as soon as possible.
Here are 8 reasons why you should start investing today.
1.Your Financial Freedom
Investing is not all about trying to become the richest man. It’s more about avoiding financial constraints. The truth is that sooner or later you are going to stop working and there will be no other means to generate income except through your portfolio(s). Your social security may not be enough to cater your needs, therefore, the need to start investing now. The investment will help you generate money for retirement, buying a new house or starting a business.
Compound interest is a powerful tool for wealth creation. Investing in your platform that provides a suitable interest rate will help you amass wealth over time. For example, if you invest $1000 at a 10% interest rate, after the first year you’ll have $1100. But next year’s interest will be on your original investment ($1000) plus the interest you earned in the first year ($100). So instead of earning another $100 in interest, you’ll be earning $110.
3. Not Investing Is a Risk
Not investing means that your money won’t generate interest for you and the value of your money would be eaten away by inflation. Investing your money in a strong portfolio can get for you the needed financial strength over time.
4. There Is No Time To Start Investing Like Today
If you think it is too late to start investment you are absolutely wrong. You can still start today and generate something instead of nothing. If you are still in your 20s and 30s you should start today and reap the bounty compound interest has.
5. You Don’t Have To Be Rich Before You Start Investing
90% of people that rebuff the idea of investing do it on the basis that they are not financially capable enough to start. Most rich investors today started with little. You can start with a little fund and generate huge fund in the process to expand your investment.
6. Practice Makes Perfect
As your money grows during investment, your financial decisions become more decisive. The earlier you start, the more time you will have to perfect your investment decision skills before the time it will matter most.
7. Failure Is Part of Wealth Accumulation
Lots of people are discouraged from investing because of fear of failure. Truth is that the road to gaining financial freedom is not always smooth. What matters most is your saving rate. The more money you save now the more money you will end up to have when you need it most.
With a portfolio, you will have another source of income which you can merge with the earnings you are already making to bolster your financial muscle. You can start investing today irrespective of what position you find yourself. What counts most is your financial freedom.
What are your favourite instruments of investing, Let us know in the comments sections?