Most times, when you relate the subject of savings and investment to the millennials and younger generations, they’re like; ‘Pleassse! don’t bore me with that topic yet, my parents and relations still have me as their primary responsibility for the now’. You see, the case of over dependency is one key reason why young people feel like they’re not cut out for investment and it’s related matters.
The earlier the young people unwrap themselves from the blanket of over dependency on parents and stick their feet down, knowing that they have the responsibility to at least think about their journey ahead and have plans ahead, the earlier they’ll begin to realize they need to start thinking about savings and investment.
Arguably the most fundamental lesson that can be taught in personal finance is the importance of saving and investing at a young age; it is vital to the process of wealth accumulation. However, it’s vital to note that, one main reason why you should start saving and investing early enough is that, you have less financial responsibility at a young age. As you get older, there is a longer list of bills to pay, people to support and other financial obligations. Also, studies show that putting away savings can also improve a person’s confidence, peace of mind and quality of life.
So, as a young investor, saving and ultimately investing is a healthy act for your financial life. I also like to refer to young investors as those newbies who are new to the investment scene, regardless of age; so all this also applies to such people.
You probably want to ask, how then should I save and invest my money?
First of all, I advise you start by setting aside chanced monies for savings. By chanced money, I mean those money that are not of immediate demand for spending, even when an immediate spending is calling for the money, be sure it’s an important need. You can save with a piggy bank or any other place or thing within your home you can put it without tampering with it. I like to say, piggy banks and all other things you can use to save money within your home are just for saving crumbs of money that when put together overtime, grows into a substantial amount of money which you should deposit into your savings account in a bank. If you don’t have a savings account, try and walk up to any reliable bank of your choice and do so; as it’s not advisable to keep large sums of money at home.
Like I said in one of my previous publications, you don’t save to solve your needs, rather you save to invest, and from your returns on investment, you solve your needs. That is the way to grow wealth, if you keep spending your savings, one day you’ll run out of all your resources.
Now, you may want to ask, how then should I invest?
To invest, especially as a young investor who is new to the scene, it’s expedient you start out by researching on the various investment options available and the ones you feel comfortable and at peace with.
I also advise, DO NOT just jump into any investment option of your choice without consulting a financial advisor; to avoid making the wrong move.
If you want to ask; …but when is the right age to start investing?
I like to answer, there is no ideal age to start on your first investments, though some have rated it 18 as some investment options restrict their age limit to 18+. However, it is good you know that there are a vast range of options you can go for even if you are under 18, ‘cos the younger you are, the better chances you have of building a wealthy and thriving future for yourself.