Why Investing is Worth Your While

investingSo you’ve earned a little money and you’re not sure what to do with it. In a world full of things constantly trying to grab your attention, thoughts of long-term investment often fall by the wayside. It’s understandable. The investing world is intimidating and unknowable. You might have heard about the risks associated with it, perhaps it sounds a little boring and like it’s an activity solely reserved for the rich.

However, it doesn’t have to be only for the rich. Investing, no matter how intimidating or mysterious, can make your time and money worthwhile, and can even be a fun. It’s important to look into investing, as it is a good way to earn more money than your bank account will ever give you.

Here is why you should look into the world of investment:

  1. Think about retirement. You might have looked up what a 401(k) is on the internet, but have you ever thought about your retirement plan? As tempting as it would be to retire early, it’s not a possibility for most people. A 401(k) can be hard to understand, but in essence, it’s a type of retirement plan sponsored by your employer. Basically, you can choose to have part of your salary go toward your 401(k) plan, which will help you save money for retirement. It’s relatively easy to understand and invest in, and it’s worth it in the long-run. When you invest for fifty years down the road, you can focus both on what you need now as well as what you will need in the future.
  2. Research goes a long way. When you research investments, you’ll be able to find what you’re most interested in, and what you feel will aid you the most throughout your life. Researching the topic will help you understand better what a 401(k) is, what a Roth IRA is, and what options are out there for you. You’ll discover what best fits your own financial situation, especially if you don’t have very much money to start off with. Learn what you can, and look at multiple sources that can provide different perspectives. And once you’ve studied it, invest in what you understand. Understanding what you’re getting yourself into isn’t just a good rule of thumb – it’s being smart about your money and what you want to do with it.
  3. Have no fear, even if you have no money. As iterated before, investing isn’t only for the rich. When you build your investment portfolio, you tailor it according to your own financial needs or goals, and whatever stage of life you might be in at the time. This is good because the economy, as the 2008 financial crisis brutally taught us, will not always be in good shape. You can adjust your investment portfolio, and your finances will follow suit.
  4. Investment apps make it fun. You’d be surprised how many investment apps exist nowadays. There are apps to invest your spare change, there are apps that examine the market and report to you on its status; heck, there are even apps that help you diversify your portfolio. Now you can’t even use boredom as an excuse.
  5. Starting sooner reaps better benefits. Think of it like getting into running. Sure, there are amazing stories of people who do marathons at 50, 60, 70, or 80. But they will almost certainly tell you that it was so much harder getting into it at their age rather than in their twenties or thirties. We’re not saying that starting investing in your thirties instead of your twenties will leave you full of regret. It is your money, after all, and you know your financial situation better than anyone. However, when you start investing earlier in your life, you give your money time to grow. The longer it has to grow, it can double just as much.

Investing can be worth it. It can be fun, and when you do your research and become more financially educated, you will reap incredible benefits. But hey, don’t take our word for it. Get out there, get researching, and get investing.

Image Credits Pixabay, CC0 1.0

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