Benefits of Investing in Your Twenties

Benefits of Investing in Your 20s

Benefits of Investing in Your Twenties 

Start early. That’s what everyone says about investing, to start early. When time is on your side you have a much higher likelihood of being successful in investing.

You Have More Time

Look, we get it, it’s easy to fall into the procrastination trap when you are young. It’s easy to put off investing until you are making more money, or you have your student loans or other debt paid down. The problem is that procrastinating becomes a habit, and what you don’t want to happen is to find yourself like the millions of people who are in their 40s or 50s and still haven’t started.

The earlier you start, the longer your money will have a chance to grow. Let’s say your money doubles every seven years, which is very realistic, putting off investing for fourteen years will leave you with 25% of what you would have if you start now. It probably wasn’t Einstein who said it, but compound interest truly is one of the wonders of the world.

You Have More Options

The younger you are, the more risk you can safely take on. If you wait, you have a much smaller margin of error. You won’t be able to take on risks if you are comfortable doing so.

​We are on the cusp of some massive technological advancements. In the next decade, fortunes are going to be made in industries like electric cars, Internet of Things, blockchain technology, biotech and the list could go on. All of this is inherently risky, but you only need a few successes in your twenties to set yourself up for a financially sound future. ​

When giving financial advice, everyone first asks,”what is your risk tolerance?” We believe in asking that question in a different way. A better question is, “Are you getting paid appropriately for the risk that you are taking?” ​

We can teach you how to analyze your investments so that you can be comfortable knowing whether a risk is worth taking based on your personal beliefs and values. A small cap tech stock and the shell game they play on the corner in your old hometown are both risky investments, you only have a chance to get paid appropriately for one though.

You WIll Acquire More Skill

The most important and also most overlooked benefit of starting early is that investing is a skill. And skills take a long time to learn and develop. The longer you have to learn how to invest, the better at it you will get. ​

The difference between starting in your twenties and starting in your forties isn’t just twenty some years of financial gains in your portfolio. It's starting with nothing and knowing nothing in your forties versus having a nice nest egg AND twenty years of wisdom already in the bank when you are in your forties.

We suggest starting to save now and starting to learn now. The last thing you want to be is a fifty year old with low back pain trying to figure out how to monetize your TikTok account. Check us out today at Stock Region University Telegram Group Chat and start learning with us.

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