For many twenty somethings, the idea of investing their newly earned money is far fetched. For most, it is difficult to save money, let alone invest into their future. However, even with student loan debt and low wages, young adults are in the perfect stage to start investing. In fact, the biggest advantage to investing while young is time. Compounding interest only works with plenty of time. The 21 year old who put $5000 into investments will have a lot more saved by the time he/she is 60 than the 45 year old who did the same.
Age is also closely aligned with how much risk a person can withstand. While those looking to retire soon are most likely to take the safest routes, 20 year-olds can take bigger risks considering they have years of money making potential ahead of them.
With time and flexibility on their sides, young adults are able to learn investing slowly and correctly. Should mistakes occur, there is plenty of time to earn back anything lost. Chris Linkas, esteemed European Head of Credit, advises people to know that while information from well known sources or from remarkable investors can be beneficial, the information is not always right or going to make the same amount of money, and investing is really something you will succeed most with if you learn on your own.
A huge advantage of being in your 20’s today is technology says Chris. Yes, it has evolved incredibly, but young adults are also much more tech savvy these days. They are able to study, research, and apply investing skills with ease. There is also a large market for online investing that gives tech savvy kids the upper hand.
Opportunity is in plenty for young adults as well. Since the ability to earn wages is crucial to investing, investing in oneself (i.e. earning a degree or learning more skills) is extremely valuable. Twenty-somethings have the opportunity to increase their chances of earning more money, and in turn investing smarter.
Investment kings like Chris Linkas would agree that the earlier one can start learning about investing and earning potential, the better. There are a multitude of reasons to invest early on, but primarily, you’ll most likely end up with more money. Why wouldn’t you go for that?