Why Investing In Your 20s Shouldn’t Be Scary?
- 4 MINUTES READ
Starting investing in your 20’s is an excellent way to plan your financial goals and build wealth for your future.
Rather than waiting until years later, we love to promote taking advantage of your youth and help you get a head start on hitting your future goals, idealize your future retirement by purchasing your first home or investment property.
Most people in their later age always say “I wish I started sooner” or “I wish I invest in my 20’s”. By investing at an early stage of life, you have the upper hand to grow wealth significantly, taking advantage of technological innovation, you can create a snowball effect with your money. Being in your 20’s is never a barrier making an investment, you are never too young to invest. The earlier you begin, the greater your return on investment.
Property investing in your 20’s
Before making any investment decisions there are many factors to consider and your choice will largely be determined by your goals and what you’re trying to achieve through investing.
Investing in assets that provide growth overtime and for most people they dive into property investing as it provides a secure pathway to increased wealth, cashflow, tax benefits, equity growth, and financial freedom. Your 20s can be a great time to take on property investment as it allows you to keep ahead of inflation and enjoy a comfortable lifestyle for your future.
the advantages of starting early
1. Time allows you to take risks
The greatest advantage that young property investors have is TIME. They have more years to study and learn about the markets and property investment strategies. Additionally, young investors are proven to have more risk-taking ability, with years of earning ahead of them, they can afford to take on more calculated risks in their investment activities. Investors who start later in life will have less opportunities to grow their investment portfolio then those who start sooner.
2. Be a step ahead of everyone else
The earlier you begin investing, the better your personal financial situation will be. Because of early investments, over time you will be able to buy luxuries using the money generated from your investments as well as creating more opportunities for yourself such as travelling to places you want while others might not afford to experience those things. This puts you ahead of others who wait to invest at a later stage of life.
3. Compound interest really makes a difference
Perhaps the most significant benefit of investing as early as possible is the impact that compounding interest will have on your portfolio. Compound interest is the interest earned on interest. By continuously reinvesting your earnings and having those earnings begin to work for you, creates a knock on effect and so on…you are exponentially increasing your return on investment.
Savvy investors understand the benefits of investing early and taking advantage of the potential gains from compound interest. For example, if I receive 15% interest on my $1,000 investment, the first year and I reinvest that money back into the original investment, then in the second year, I would receive 15% interest on $1000 and the $150 I reinvested. We believe it’s never too early to start investing. In fact, the earlier you start, the more you can make out of compound interest. Over time, compound interest will make much more money than simple interest.
The Bottom Line
The earlier you start, the more chance you have to build your wealth. Of course, start investing when you have the means to do it. Investing in your 20s will allow you to have some definitive advantages over those who wait to begin investing, including time, the ability to weather increased risk and opportunities to increase future income. You can’t wait for the time when things get stable for you. Investing now is the best decision you can make in your life, it’s in your advantage to start early!
Your complimentary strategy session
If you need someone to help you take your first step into investment property – reach out to the One Central Property team and we can arrange for a FREE 1-on-1 Strategy Session to map out your goals and make a plan so that you too can become a young investor. One Central Property will be with you at every step to achieve your goals.
Speak with a dedicated property consultant today and discover how our experts help guide you through all those obstacles that you’ll face during your property journey.
