Reasons to Start Investing Today
Calling all 20-somethings — maybe you keep telling yourself you’ll invest when you make more money. Maybe you keep saying you’ll get around to it “someday.” Having a savings account is important, but it’s not enough. Once you’ve reached a point in your life where cash flow is stable, you can slowly start to move money over to investing.
Receiving your tax refund check can be a great opportunity to begin investing. A simple way to consider investing is that you’ll be putting your money somewhere other than your checking account, and watching it grow. Do you still need some convincing?
Here are 6 reasons you should get started investing today:
1. Grow your wealth
It may seem overly simple, but investing is a great way to build wealth. In order to grow your money, you need to put it in a place where it can possibly earn a high rate of return. Many investment tools, such as stocks, certificates of deposit, mutual funds, or bonds, offer returns on your money over the long period of time. This return encourages your money to build, creating wealth over time. If you don’t invest, you are missing out on opportunities to increase your financial worth.
2. Financial freedom
Investing isn’t about getting rich, it’s about building financial security for yourself. The truth is, at some point you’re going to have to stop working. Imagine if you could choose to stop working when you wanted to, not when you needed to…the only person who can make sure you’re able to do that on your own terms is you. Investing can help you create financial freedom and there is no better time than today.
3. Two words: Compound. Interest.
In the wise words of Albert Einstein,
“Compound interest is the eighth wonder of the world. He who understands it, earns it… he who doesn\’t, pays it.”
The longer your money can benefit from the power of compound interest, the larger your gains will be over time.
So, let’s put it in numbers that make sense.
Say you invest $2,000 this year and you earn a 10% return. That means that you will make $200 on your original investment of $2,000, resulting in $2,200 in your pocket. What if you don’t contribute anything next year? Guess what—you still make money. You still earn that same 10% return, only this time on your investment of $2,200. So instead of making $200, you’ll actually earn $220. That is the beauty of compound interest. Without having to do anything, your money keeps growing on its own.
4. Reach financial goals.
Investing can help grow your money to meet your long term financial goals. Whether your goals are to pay off a mortgage, provide for a college education or fund your retirement, investing can help you can meet those goals. Storing money in a savings account only will not benefit you as much in the long term. Investments tend to earn a higher rate of return than a savings account, earning more money both over the long term and within a faster time period.
5. Mistakes are OK!
A lot of people never get started investing because they’re worried about making a huge mistake. It may feel like this big, complicated project that you have to spend a ton of time and energy (and money) on to get right… and if you don’t. then you’ll lose a lot. The truth is: you might not feel the full effects of your investment for about 10 years or more. Additionally, your savings rate will have a greater effect on your financial growth than your investment returns alone. That just means the more you save, the more you’re likely to have in the end. If you are consistently adding savings to your investments over time, you won’t have to stress as much about past mistakes. So don’t let self-doubt or your fears stop you from getting started.
6. There is no day better than TODAY.
“The best time to plant a tree was 20 years ago. The second best time is now.” — Chinese proverb
Investing is possible at any age and every bit counts. The sooner you put your dollars to work, the more likely you are to benefit in the long term. Experts estimate that 40% of people have experienced a financial loss because of procrastination. Make moves towards financial gain by calling and learning about your investment options today.
Choosing to invest your money isn’t only about financial growth – it’s about believing in your goals and investing in yourself. Don’t wait until you look back years from now, and wish you had done something sooner. Invest in yourself today… even if means simply creating a financial plan.
Our financial service professionals can help you define and set financial goals, like buying a house or a new car, starting a college fund for your kids, or even advising you through quitting your job to start that food truck you’ve always dreamed of. We can also help you with planning and implementing tactics to help you achieve those goals. Boyd Insurance & Investments is here for you, providing Protection for Life.
Boyd Insurance & Investments offers financial expertise in Retirement, Investment, and Estate Tax Planning for Individuals and Companies alike. Investment services include mutual funds, 401K, brokerage accounts, money market accounts, IRA’s, Roth IRA’s & rollovers, tax-deferred annuities, life insurance, estate plans, disability, group life insurance and more!