Reasons To Start Investing Young

Reasons to Start Investing Young

The world of finance, with all its jargon, can seem intimidating to the untrained eye. Stock markets too seem hard to understand if you’re a beginner. So, the question arises if we should keep a safe distance from investing? 

No, that’s not the attitude one should have. In fact, if you start investing young, you stand a better chance of building a huge corpus. 

Stats are showing that 70% of all demat account openings in India are by millennials (people born between 1981 and 1996). 

So, let’s explore the reasons why your mid-20s is the perfect age and why so many young Indian investors are pouring their money into the market. 

You Can Start Small 

The best part about starting investing early is that you will have a lot of time on your hands. This means that your invested amount can be small. And as you stay patient and invested, you can build your wealth over a long time horizon.  

In fact, you can start your SIP (Systematic Investment Plan) with as little as Rs. 500. SIP investment is a convenient method to start investing as the said amount will be automatically deducted from your bank account. 

All the more reason to start looking for the best sip plans, right? And Later, as you grow in your career and start earning more, you can increase the amount you want to invest.

Helps you Inculcate the Habit of Saving 

When young people start earning, they feel an urge to start spending right away. Or let’s just say that they are nowhere near as interested in saving as they are in spending. 

But if you start investing early, you inculcate the habit of saving, which is an added bonus. Furthermore, it also affects how you go about spending your money. 

After all, when you know you have to save a specific amount every month, you learn to balance your spending with your savings. 

You Can Afford to Take Risks  

There’s one harsh truth about investing: If you want to get super-high returns, you will have to take risks. But those who start investing late in their life, they can’t afford to take major risks. 

On the other hand, if you start investing somewhere around your mid-20s, you can afford to be an aggressive investor as you have more time to recover from a loss. 

Also, if you are not married yet, there are fewer financial responsibilities for you. So, you don’t have to think much before taking an investment risk. 

You Reap the Benefits of Compounding 

Compounding allows you to not only receive the interest on the invested amount but also on the interest that is added to it. 

In other words, you can reinvest the earnings you get from the invested amount rather than spending it elsewhere. 

And when you start investing at a young age, there is a lot more time on your hands to reap the benefits of compounding. 

Start Your SIP Today

So, if you want to stay financially independent throughout your life, choose your pick from the best sip plans and begin your journey towards financial freedom just like millions of young first-time investors are doing. 

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