Investing early not only helps you plan your long term goals, but also gives you the advantage of taking more risks.
Following are the 5 main reasons that will explain why you should start investing when you are young.
5 Reason Why You Should Invest While You Are Young:
Reason 1: You Can Start Small
One can invest in mutual funds with as less as Rs 500 and gradually increase the amount. A small part of your salary, stipend or pocket-money will go a long way if invest in mutual funds early.
Reason 2: Improve Your Spending Habits
Investing while you are young enables you to develop the habit of disciplined spending.
Reason 3: Power of Compounding
Earlier you start, greater is the Power of Compounding since you stay invested for a long time.
Reason 4: Accumulate A Larger Corpus Amount
When you stay invested over a long period of time, you stand a better chance to accumulate a sizeable corpus by the time you retire.
Reason 5: Higher Risk Taking Ability
When you are young, you have a better chance to take risks since you have lesser responsibilities at this stage. You also have more time to invest which ultimately helps in generating more wealth over the long run.