Investbuzz

Stock Market

Why Should Start Investing Early?

 Money says “if you save me today, I will save you tomorrow”. We Often hear from our parent and elders that we should save money for our future though most of the time we ignore it by saying that it’s too early.

Answer to all this question is that you must start investing money in your 20s when you start your career. Let’s discuss some important points describing that why you should start investment early.

Control Your Desire:

Let’s assume that you start your job with monthly salary of Rs 50000/-. You are independent now and this is not bad thing to spend money on branded clothes and other things. But just think this, there are more expensive brands available, more gadgets available, you can through parties every night and you can travel with luxury packages. You cannot buy everything. If you are buying an expensive watch, than there is another much expensive watch also there. With Rs 50000 per month you cannot spend Rs 60000 per month. But if you invest Rs 20000 per month than in some time you can spend additional amount with the interest Income.

Compounding Effect:

Mr A and Mr B of same age started their career in 25 year age. Mr A started to save Rs 1 lakh every year for his retirement and save it up to 35 year age. Mr B started Rs 1 lakh saving at 35 year age and saved it for up to 60 year age. Let us assure that they got 10 percent return on their investment every year. At the end of 60 year Mr A will have Rs 1.92 crore in return of his 10 lakh investment whereas Mr B will have Rs 1.10 crore in return of his Rs 25 lakh investment. This is the effect of compounding. As early you will start you will get most Benefit.

Money Management:

When you start investing early, you will be able to manage your income and expenses perfectly. It is saying that if you spend money on the things you don’t need today you will have to sell the things you need tomorrow. Investing in early life will teach about.

Improvement in Risk taking ability:

When you start investment in your early age, you will come to know about the various price and interest movements. You can take decision according to situation based on your previous experience with market.

Secured Future:

 As you seen above, saving for only 10 years of early life will give you a big amount at your retirement age. Even you can use this amount in case of need during difficult Times.

DISCLAIMER: Views mentioned in this article are based upon personal experience of author. Please consult your financial advisor before any investments & decisions.

OPEN FREE DEMAT A/C

SUBMIT

Quotes FOR YOU