You’ve probably been advised to start investing ever since you hit the twilight years of secondary school. Whether that crucial advice came by way of your parents, or your uncle that worked at a bank, it was sound advice. If you’re reading this, it’s likely that you haven’t started investing yet but are considering it. Regardless of your age, there is no better time to start than right now. So, good on you for following your rumination down the road of research because you’ve come to the right place. Obviously, the younger you are, the better.
There are numerous ways of investing your money. We’re living in the 21st century after all, and the internet has conjured up all sorts of fantastic ways to get your money growing in no time. If you’re looking for reasons as to why you should start investing now, here are a few we can think of:
Earning interest on interest earned. Investing early in your life is extremely beneficial and most seasoned investors will tell you that they so badly wish they started earlier. Compound interest allows for money to grow over the long term.
The best part about investing from an early age is that you’ll get better with each decision you make. There’s room for error when you’re young. That’s the beauty of getting ahead while you can. By making mistakes when you’re now, you’ll acquire the experience and skills to make profitable, thoughtful decisions later in life.
When most young people hear the word investment they immediately assume it’s a time consuming, complicated process. This doesn’t have to be the case. There are a lot of ways to invest your money in a simple way. A wonderful way to learn how to invest, is to setup a practice portfolio account with a stock simulator. Alternatively, setup a meeting with a trusted financial consultant (seek advice from your elders), or do some online research. There are plenty of blogs and articles with advice on how to get started.
Now, after finding reason to do so, let’s look at a few types of investment you can make:
When starting out, the key is to try and avoid paying too much in fees. Do so by finding the right stoke broker. When choosing a brokerage company, you must understand that they will play a significant role in the type of investments that’ll be available to you. This will also determine the amount of returns you’ll receive. Think about the following:
A timeless way to invest. As soon as interest rates decrease, bond prices increase. This is what you have to remember. There are two ways to make money on bonds:
This can be achieved by selling your bond when interest rates drop. You’ll also get to hold onto the interest you earned while it was yours.
Bonds usually generate interest payments. This is the standard way of making a return through bond investment. The fixed interest doesn’t change, giving you a steady income over the long-term.
Arbitrage trading is a viable option for individuals who want to make money on the side. This form of trading exists because of loopholes in the market. Now, because of this, it’s also a feasible way to invest. Earn returns through Autobetting. Sports arbitrage is perfect for the beginner because you don’t need a fortune to start. The average rate of return is roughly between 5-10% per month, increasing as your knowledge and skill increases. Thanks to the power of compounding, you earn more and more with month that passes. After a year of arbing with a starting capital of 2500€, you could earn for example 6500€, or 160% return on investment.
What’s the catch?
Although it’s advisable to start young, when taking all this information into consideration, you could also say it’s better late than never. Investment is a long game. The time is now.