Investing. It isn’t a fun word is it? It makes you think of men in suits with briefcases. For some it makes life seem a little too serious but at some point you have to get serious. For many young people, investing doesn’t even enter their thoughts until they’re approaching 30. Many wish they’d have thought about it sooner so here is why you should starting thinking about investing at a young age.
The Sooner You Start The More You Have.
I think this is the main argument for investing at a young age. The sooner you start thinking about where to put your money, the sooner you reach your goals. This doesn’t just mean starting from a young age, but also from the start of the tax year. Opening a savings account such as an ISA at the start of the financial year (April) means your savings will start earning from that point and have the whole year to benefit.
Getting The Finer Things In Life
Buying your first house, paying for a wedding, having kids or even owning your dream car all cost money. We know this. They can also cost a lot of money, depending on what you actually want. If your life goal is to own your own home, be married and have a family by the time you’re 30 then you need to pull your socks up sooner rather than later.
If you start paying into an ISA while you’re still young and, in many cases, have money to burn you can soon see that investment taking shape. ISA calculators can show you the future growth of your money and give you an idea of how reachable your dreams are.
Starting Early, Making It A Habit
For so many people, saving money is a chore when in fact it should be a regular habit like a mobile phone bill. Putting away a percentage of your money should be treated as any other regular outgoing, obviously if all basic needs are met.
This way you never really notice the money going but you are making a start towards owning that shiny red sports car.
Looking Further Into The Future
Yes, retiring might seem a long time away but there is no harm in at least giving it some thought. As previously said, turning savings and investments into a regular habit means that, once all the lifetime dream purchases have been made, the cash you were saving can start going towards the later parts of life.
I’m not just thinking about retirement here but also your kid’s futures or travel plans; hey, you never know, we might have space travel in the not too distant future.
Opening An ISA
An ISA allows you to save up to £20,000 tax-free and is a great way to start your savings journey. There are different ISA options such as a Stocks & Shares ISA or a Junior ISA, both offer different allowances and benefits so it is worth doing a little research.
The UK Government website has some great information about opening and saving with ISAs but if you’re still confused then make sure you seek expert advice. Keeping your money safe is a top priority.
Don’t Regret It
It’s never too early to start thinking about saving and/or investing your money. However, you can find that time gets the better of you and before you know it you’re nowhere near where you’d planned to be. Even the smallest of amounts can point you in the right direction. Start now and you’ll be glad you did – the red shiny sports car will soon be yours.