Seven Reasons why :YOU SHOULD START INVESTING EARLY

Investing early can have several advantages that can help us to achieve long-term financial success. Below mentioned are seven reasons why you should start investing early:

 

1.     1. Power of Compounding :

Power of compounding is the most powerful tool in investing. Compound interest is one of the most important concept in finance. When we invest your money in  something, it earns interest on your invested money, and that interest money themselves generate more money over time. The longer we invest, the more our money can grow, leading to exponential growth in our wealth.

E.G.

Ram started investing 100 rs daily in a fund for 10% interest at age 12  &  Shyam started investing 1000 rs daily in a fund for 15% interest at age 30

Both plan to withdrawn when they turn 50.

Ram received : 2601672/-       on 180000/-

Shyam received: 1515955/-    on 240000/-

 

2.     2. More Time in Market:

Financial markets can be volatile in the short term, with sudden changes in the instrument prices. But in long terms, markets are sure to grow. By starting investing early, we have more time to ride out market ups and downs, reducing the effect of volatility on your instrument.

 

3.    3. Wealth Generation:

Investing in the early days allows us to start building up our wealth gradually. Even if we start with small amount, the compounding power of investment  can turn those small investments into huge money over time. This can help us achieve our financial goals, such as retirement or buying a home. The best example of wealth generation is Warren Buffet who gain his  major  wealth in his 60s

 

4.     4. Low Risk:

Investing in Young age reducing the risk of losing the capital if you stick to a proper risk  management  strategy.  Investors often have a higher risk tolerance because they have more time to recover from market downturns. This means you can invest in assets with higher growth potential, like stocks, which tend to have greater long-term returns but also more short-term volatility.

 

5.     5. Diversification:

Diversifying your money in different instruments like stocks, bonds, real estate etc. can help reduce risk and wealth building. By starting early, we have more time to build a diversified portfolio, which can protect our investments from big losses.

 

6.     6. Discipline:

Investing early teaches us financial discipline and regular saving of money. It encourages us to allocate a certain amount of our money towards investments, helping us develop a good money management habits that can benefit us throughout your life.

 

7.     7. Setting & Achieving Long-Term Goals:

Many of our desired goals, such as buying a home, sending our children to college, or retiring, buying our dream car require huge chunk of money. Investing early and consistently can help us work toward these goals by providing the potential for larger returns over time.

 

Therefore Start Investing Now
You Are Never Late To Start Investing