Start Early: Investment Tips For The Young Investor

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No one is ever too young to invest. The word “investment” can sound off as intimidating for many, but it is a start to having a future of financial freedom. Below are some investment tips young investors need to keep in mind.

Do not think of your savings account as a long-term investment.

Your savings may grow (at most) 1 percent per annum, but if you regularly withdraw from the account, the increment will not be felt at all. While having a savings account is highly encouraged for young investors, it is not a long-term investment strategy. Choose other channels like the stock market, insurance policies, or mutual funds for your future investments.

Take risks while you’re young.

Don’t be afraid to try things out. If you made a mistake while you’re young, you'd have more time fixing the problem as you get older (and wiser). However, if you’re going to try out new things when you’re older, there is much more at stake. Try out something that appeals to you, but make sure you do enough research.

Investing takes discipline.

Make sure you pay your bills and investments on time so you won’t have to worry about where to get funds. If you need to cut down on your expenses, think of it as delayed gratification.

Save for your retirement.

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“But I’m only 24 years old!” Well, your 65-year-old self will thank you for starting early. Enjoy the fruits of your labor when the time comes. It’s never too early to start saving for your retirement.

Fred B. Barbara started as a young investor. He began with a trucking company and grew his investments over time. Currently, Fred is a member of the board of directors for various companies. Follow this Twitter account for more investing tips.