6 Reasons to Start Investing as Early as Possible

If you had a dollar for every time you have heard that you need to start investing, you would probably have a tidy sum of money - that you could take and invest with.

If you have been holding yourself back because of fear, lack of knowledge, or other reasons, maybe now is a good time to revisit your beliefs around investing.

The title of this article suggests that you must start investing early, and that's true. The earlier the better. However, if you feel like you "missed the boat" because you didn't start investing at an early age, don't let that stop you. The best time may have been ten years ago, but the next best time is now.

1. The Earlier You Start, The More Risks You Can Take

You can start investing at any age, but when you begin early, you have the edge of being able to take on more risk. Of course, risks should always be balanced with safer investments, but increased risk often gives greater rewards. Remember, though, to never put all your investment eggs in one basket. Long-term, low-risk investments should always make up a good portion of your portfolio.

2. Compound Interest Is On Your Side

The earlier you begin your investment journey, the more time compound interest has to work its magic. Compound interest allows you to grow your money over time and builds upon itself. Investing early, and investing often creates a snowball effect that only gets larger over time. This gives a clear advantage to those who start sooner than later.

3. Investing Has Never Been Easier

Many people put off investing because they have been led to believe it is complicated or you have to hire someone to do it for you. This is not true. There has never been a better, easier time to start investing. Technology has made it easier than ever before to learn and invest. There are investment platforms that are geared toward beginners and you can start investing today, using apps on your smartphone. There are books, websites, podcasts, and free courses out there to help you begin your investment journey. You can start with your employer's 401k which puts investing on autopilot, but you can also explore additional investment options outside of your 401k.

4. You Don't Need A Lot Of Money To Start

Starting early and consistently adding to your investment portfolio doesn't require a large outlay of cash. You can start with a few dollars, really. If you are serious about building a portfolio and want to see it take off faster, consider funneling money you normally use for other things. For example, contribute money you might normally spend on a subscription you don't really need or fast food or other expenses that don't add that much value to your life. Take that money, invest it, and watch it grow into something that can change your life.

5. Investing Allows You To Build Generational Wealth

Start investing early, consistently, and wisely. Keep challenging yourself to learn more, invest more, and over the years you will build wealth that not only creates security in your own life, but also has the potential to create generational wealth that impacts the lives of your family going forward.

Smart investing early on helps you achieve your dreams faster and more easily. Things like homeownership, education, retirement, travel, and more are made possible for many people because they chose to invest.

6. Investing Now Makes Life Easier Later

When would you like to retire? What does retirement look like to you? When you make investment a priority, you are contributing toward a retirement that is more secure, comfortable, and independent.

No matter how old you are, how much money you have, or what your goals are, now is still a great time to get started. Take some time to determine what kind of investor you want to be, what you would like to get out of investing, and what your risk tolerance is. Don't let fear or time delay you any longer.