There was a time when certain kinds of investments are seen as only accessible at a certain age. For example, looking at some house and land packages Melbourne Australia, London UK, or anywhere in the world and purchasing it to build your dream house is considered an investment made by people in their late twenties — an age where they are expected to have a stable job to pay for house loans. But if we are talking about investments beyond traditional savings like bonds, stocks, and mutual funds; well, those are for people belonging in the forties and above bracket.
Everything about that is a myth. Of course you can invest in stocks at a young age. Some have even done it while they were in high school. Investing right now while you are young is not only possible, but also very ideal. You can get substantial benefits from allowing your money to grow in a diversified investment portfolio.
Here we will explore other investment myths that need total debunking.
Not enough money to invest
Most people you have earned millions from investing will tell you to jump right to it and do not think about the money you have in hand now, because that will grow eventually. The thing is, that statement is only half true. You do need to think about the money you have in hand right now. But here is the thing, if you think it is not enough now, you can always find ways for it to grow so you can invest more. Think of the safer options first: traditional savings, and fund growing accounts like bonds. You can choose these first to grow your money while you are earning more of it.
You do not need millions to start investing, you only need to have enough money to have a diversified investment portfolio, and you are good to go. Ask your financial advisor about the steps you can take to start investing.
Insufficient knowledge in investment schemes
This is a problem that is very easy to solve. Being young does not affect how you can learn about it, all you need to do is make a little effort. Ask financial experts for unbiased advice, Google financial literacy lessons, and read up on it through articles and books. There are a lot of ways to learn about money and how you can grow it. These lessons will also help you manage your assets once your investments are in place.
Possibility of losing money
Everything we do has risks with them, and when it comes to investing, it definitely involves taking chances. That might send you off in a panic, but there are ways to minimise the risks and maximise your gain. You just need to have a sound judgement and to ask for help when you need it. You are young, you will experience losses, but do not let it stop you from investing for the future. Your age right now allows you to experiment, but be careful and smart about it. Study the market and learn from your mistakes.
There is no better time to invest than to start it now. Being young gives you the privilege to craft a careful criteria when investing, one that you will perfect overtime. All you need to do is to study everything that you will do. Yes, it involves a little elbow grease, but the big returns will be worth it.