To be, or not to be a millennial. Sometimes it’s great, sometimes it sucks. And just like each generation, we have our own habits and tendencies towards how we use our money. A recent Forbes Article revealed that we’re great savers in some areas, yet terrible investors. So here’s a few points to consider why you should consider investing your money now:
- Youth Is In Your Favor. Investing doesn’t have to be a scary thing. Time is on your side. Even making the most conservative investment will result in far more than those who invest later in life. Because you have more time, you are able to save more money to invest and the freedom to take more time to find an investment that you’re excited about.
- Improves Spending Habits. It’s been found that those who invest earlier in their life are less likely to overstep their budgets or spending habits, and overall have more self control in their spending habits. The sooner you start investing, the quicker you will learn positive spending habits and how to better use your money, which means more time reaping the benefits. We work hard for our money, why wait to make it work hard for us?
- Time Value of Money Pays Well. This is also known as compounding returns. While you’re not necessarily getting a large sum of cash initially, these in the long run will accumulate and help you build larger wealth.
- Ahead of The Personal Finance Game. Even simply being a young investor can put you ahead in the world of personal finance in general. As the economy rises and falls, or simply when life happens and finances are tight, these investments can help you ride the rough patches out without as many bumps without.This also includes after retirement. Investing earlier in the game can help prevent you needing to make last-minute costly decisions right before or during retirement.
We get it. Saving money to invest, especially at a younger age, can seem daunting. Yet if you wait for when it’s easier or when the time is right, it will never happen. Even if you have to start with super small investments, you’re taking one step closer to making your money work harder for you. We can do this, millennials.