HomeAdvisor ServicesWhat Hinders Investing Your Money And How You Can Save More By Investing At A Young Age?
What Hinders Investing Your Money And How You Can Save More By Investing At A Young Age?
May 26, 2021
How to invest How much to invest? Which investments to favour at 20, 30 or 40 years? What return should you aim for? How to prioritize your goals?
We have said it again and again: in times of economic crisis, saving is not enough. What is needed is to invest your liquidity over the long term, to commit your capital to make your money grow, whether in real estate, life insurance or the stock market. Investing means preparing for retirement, building wealth, paying less taxes.
Diversify your investments
All the experts say it is the basis of any successful investment and it is pure logic. If you invest the same amount in 4 different companies that one of them files for bankruptcy, you will lose 25% of the invested capital.
The risk involved is even higher if you focus your investment on a single sector (luxury goods, gold, oil, etc.).
Conversely, by diversifying your investments, you are pooling risks. Certainly, the return will be weaker in certain sectors, but it will be offset by the outperformance of other sectors, for this, you can take help of investment consulting services in Delhi.
When you talk to young people about investing, you often see a frown and almost inevitably you get different types of answers.
1. “I don’t have time”
Here is an excuse that a lot of people use. We are talking about that kind of person who has a habit of always putting things off until tomorrow. But the excuse “I don’t have time” is not very valid, when we know, for example, that a person spends on average 4 hours a day in front of his television.
Watching people driving Ferraris on TV is not the way to get yours. Besides, do you know why we don’t see any adverts for Ferraris? Quite simply because people who can afford it don’t spend their time watching television.
We all have 24 hours in a day and obligations to meet, so how can we explain that some people get rich by investing, while others answer “I don’t have the time”? This excuse is not valid.
Why start investing young and not later?
It is true that we could say to ourselves “life is long, I still have time to invest”. But it’s wrong. The younger you start investing, the greater the inertia effect you will create.
Take the example of any investment at 10% profitability. If you invest Rs. 2,000/year at the age of 22 will create a capital of around Rs. 11,84,801 once the age of 65 is reached. So far so good.
At the age of 23, you have to invest Rs. 2,204 every year to get the same amount of Rs. 1,184,801 at 65.
Investing young also allows more leeway and this can easily be done by contacting top investment services companies. It is of course possible to plan other types of projects at the age of 30 than at the age of 50. For example, you may no longer take out a loan over 25 years for a rental investment at the age of 50.