1 Piece of Advice To Follow
One key and invaluable piece of advice out there is to start investing when you’re in your 20s because your investments will skyrocket — easily — as time progresses.
To offer you some context, Warren Buffet started investing at age 11 and consequently became a millionaire at age 30. He didn’t become a billionaire until he reached his 50s (that’s when compound interest took a skyrocketing path upward).
The best time to start investing is in the moments your parents conceive you in the womb, but that rarely happens. But something everyone can do is invest in their 20s — even if you’re up to your knees in debt with student loans, credit cards, and car loans. This is one reason I disagree with Dave Ramsey’s 7 baby steps; never put off investing to pay off debt.
“I Can’t Afford To Invest” Is Never A Valid Reason
Start with as little as $5 a month. Shoot, start with $1 a month, but I guarantee you can probably find $10-$500 a month to invest if you stop spending it on things you don’t need. Remember, fast food, shopping, entertainment, subscriptions, accessories, technology, travel, keeping up appearances, cars, etc., all add up. Your spending habits will either break you — financially — or elevate you. Don’t be like the majority of Americans who will play financial catch up for the rest of their lives. Be the outlier; it’s a much easier road.
Starting Early Always Outwins Late Investors
“The most important decision you can make is to start [investing] now. To illustrate, imagine two college graduates with access to tax-deferred investment accounts earning 8% per year. The first investor saves $250 a month for ten years (for a total of $30,000) and then doesn’t make another investment for the next 30 years. At the end of the 40 years, their portfolio amounts to $509,605.
The second investor doesn’t invest for the first ten years of the same 40-year period. Instead, they contribute $250 a month for the next 30 years for a total contribution of $90,000. But despite saving more money over a longer period of time, the second investor ends up with only $375,074.” — Forbes
Don’t Forfeit Easy Money — This Is A Quick Win.
Meeting and chatting with 20 somethings who do not invest consistently makes me cringe because they’re throwing away the easiest opportunity to be a millionaire before 50.
If you have friends, family, mentees, or know someone in their 20s (including yourself), please encourage them to start investing today.
Remember, investing is best executed simply. If you don’t know what to do, set up an automatic deposit in a Robo-investment account that does everything for you. All you need to focus on is getting your money in the account and not touching the money you put in the account (another mistake many people make is withdrawing the money they invest for fake “emergencies”).
Final Thoughts
Destiny S. Harris is a writer, poet, entrepreneur, teacher, and techie who offers free books daily on amazon. Destiny obtained three degrees in political science, psychology, and women’s studies. Follow her on Instagram, Facebook, or @ destinyh.com
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This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.