Many young people in Australia don’t think about next week, never mind next year or ten years from now. They live in the now and they have to be commended for this. However, putting off decisions in life can come back to bite you in the ass later and thinking about your future now is the best way to handle this. You may think that now is not the time for you to invest in your future but you would be wrong. People in their twenties in Australia are in the best position to get involved in investing in their future now and even though they might have that student loan to pay off, they hold many advantages over their older counterparts.
- Time is On Your Side – Youth is a great advantage as it means you have more time to save and invest. Compounding is the key word here and when you invest, you want to be able to reinvest the money that you have already made. You have gotten the interest and now you can invest that interest to get more interest. As long as you are getting a rate that is higher than the current inflation, then you are making money for the future, now. All you need is the money, patience and time and your investment will grow over the years as you just go on living life to the full.
- They Can Take on More risk – Because they are young, this has a great influence on the amount of risk that they can undertake. There are many additional years ahead for investing and so it allows them to take a little bit more risk now. They can afford to invest in things that are a little riskier, but produce much bigger returns. Unlike their older counterparts who look for low-risk investments due to time constraints, young investors do not have this issue. Online lenders such as Max Funding offer loans for investment and with competitive rates of interest, you can begin to build your investment portfolio.
- Learn as You Invest – Younger people have the time and inclination to learn about what it is that they are investing in. It is all a learning curve and they can learn from their many successes and some of their few failures. It gives them time to study the markets and weed out the poor ones from the good ones. This way they will feel much more confident when they do invest their savings and if they do make a poor investment decision then there is lots of time to recover from it.
- The Young are very Tech Savvy – Young people are not intimidated by the latest technology that allows them to invest in themselves through the various trading platforms that are now available online. They can study and then understand how it all works by joining chat rooms about investments and learning from it. The knowledge that can be gained from sources online can prepare young investors with the knowledge and confidence to go ahead and invest now.
Don’t wait until it is too late to invest in your future. Do it now while you are still young and have the necessary time and skills to do so.