INVESTMENTS- I can feel my mind conjuring up images of grey-haired men in blazers sharing stock recommendations or celebrating after a successful deal. When their fairly-paying jobs provided stable salaries, and there were weekends, new vehicles, and outfits to buy, many young adults were not inclined to put money down – not when life was unfolding for them.
Fast-forward to a decade later, the youth knows investing earlier on is imperative. I’d like to believe it’s because we’re prudent and more mature, but modern technology has enabled investments. Recent events have highlighted the importance of building long-term wealth — most lately, the pandemic, which has thrown people’s employment prospects and financial stability into disarray.
Growing up and achieving our professional dreams, we’re obsessed with making more. More the money, more the fun! However, what do you do with all this hard-earned money? Did you ever receive guidance on investing the money rather than letting it sit in your bank account?
Many young folks do not learn how to invest sensibly. It is seldom because they are preoccupied with the present rather than the future. Though you don’t have to give up your lifestyle while you’re young, investing regularly over the years will guarantee that your earnings and net wealth are there when you require them. You can take advantage of compounding by investing early.
According to a survey from June 2020, 75% of Gen Z and millennials intend to invest. Shocking? I’d call it promising.
The stock market has always been an intriguing facet of the corporate world. While it may daunt to put your hard-earned money in stocks with high risks, the returns are mind-boggling. After all, ‘Risk Hai Toh Ishq Hai’. Again, too much greed can also lead you to fall into a trap and don’t allow this to be a bait to reel you in.
Making wise investments can help you convert your money into wealth. Today, the youth realise that money doesn’t come in easy and gets spent at an alarming rate. While income may be scarce, young folks have one advantage: time. There’s a reason Albert Einstein called compounding, or the potential to expand investment by reinvesting returns, “the eighth wonder of the world.”
Starting soon can help you plan smart and work towards your goals. If you invest early in life, your spending habits will develop automatically.
You may wonder how this is possible?
If you want to save a certain sum from your fixed pay, you’ll need to set spending limits for yourself by making a monthly budget. And having a budget is the best approach to changing your spending habits because it allows you to track your monthly expenses for things like food, electricity, rent, and recreational activities. This primary task becomes a habit after years of repetition.
Young people may afford to take substantial risks in their financial activities because they have years of income ahead of them. They have the freedom and leisure to learn about investing and their strengths and weaknesses. Also, they have an edge since they have time to study the markets and develop their investing methods because investing has a long learning curve. Greater the risk, the greater the tolerance.
You only learn when you fall, you only grow when you explore. It’s a famous saying which runs in the stock markets- “Invest In Rumours, Sell On News”.
Never knew investing in the stock market could teach you life lessons like managing time, understanding risks and returns, practising tolerance, discipline and developing patience. It may be a minor investment from your earnings, but the life lessons you learn along the way are what will make the difference. Start early and take advantage of the years ahead of you. In the words of John D Rockfeller- “Don’t be afraid to give up the good to go for the Great.”
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