Top Reasons Why You Should Start Investing Early In Life

Starting anything early is always very good for long term that may be anything learning a cource, skill , art , hobbies or exercise then why not investment. why you don't think to start investing early in life...?

If you start investing early then you will get multiple benefits in less investment otherwise benenfits will reduce as you start late and thus investment will increase.

You don't need any specific age, knowledge and experience to start Investing

Starting to invest in stock market don't required any specific age. you can start it at any age but start to invest early is much better than later.

Why you should start investing early in life

Starting investing early has many reasons like this :

To Study market practically
Study different investing instrument
Learn power of compounding
To correct investing mistakes.
Build big risk taking ability
To create strong portfolio.

First you will think stock market is risky so you keep yourself away from it and even you think about investment then also may be you think we will start when we will start earning income or when you will stable in job or when you starts to earn some extra income and this is never going to happen.

If you are thinking like this then you are keeping youself away from earning good return of long term and wasting your time. instead of this you should start to invest as early as possible with less or minimum amount.

Investing Early Allows Study Market Practically

If you start to invest early then you can understand the stock market properly with different angles because market is dependent on many things and all those things can affecet your returns so if you study them then you can consider them while investing and this is the biggest advantages of starting investing early.

It will help to select right investing instrument at right time because of your practical knowledge and experience of market because you have to know one thing, there is lots of differance in knowing things about market in theory form and doing them practically in market to earn good returns . so because of early start you can allow enough time to learn and take right invesment decision for lont term.

Investing Early To Study Different Investing Instrument

When you start investing early then it is possible that you will not get the returns as expected in time and you will stuck at a point because you are unknown for all the investing types but becuase of early investing, this process help you or push you to see other different investing instrument available in the stock market to invest.

When you will know multiple investing instrumets then you can choose right one to start with your current earning and knowledge. it will gradually create your good base and makes you able to make a good plan of future investment with multiple investing instruments.

In investing it is must to know how investing instrument works according to type, capital, time period and risk ratio. Other wise you can't earn most out of it.

knowing all the types is very good even you invest in them or not because may be in the future you will find a very good investing apportunity according to market condition in in any investing instrument so you can take advantage of it. so its best to try to know all the types properly.

Example:
If you start early then you can explore the different investing instruments at beggining. like if you start at 21 or 22 then first few years with your small investment you can analyse how all these different instruments works over time so you will get better idea about how and where to invest your money for short or medium or long term and how this will create wealth for you.

Investing Early To Learn Power Of Compounding

Compounding is process in which you add earned profit to your initial investment and earn profit on both that is your initial investment plus its profit. it means that when you earn profit then you add it to your investment and again reinvest that in market and you do this again and again to earn multiple returns.

Compounding interest is a process in which , the interest you earn on your investmemt earn interest on it by adding it every time to your initial investment.

For example : If you invest Rs.1000 with 5% interest for 1 year then you will earn interest on Rs.1000 and next time interest on Rs.1000 + 5% interest and it will continue till the total period.see the table below.

Investment	Interest	Time Period
1000	5%	1 yr
	50 Rs.	1 yr
1050	5%	1 yr
	52.50 Rs.	1 yr
1102.50

This is the power of compounding. if you learn this then you will able to earn interest over interest and earn very good returns in the long period by starting investing early otherwise you will earn only limited interest .

Remember one thing is that more the period of investing more you earn the Returns

Investing Early Corrects Investing Mistakes

Starting to learn also investing early is very important thing and lots of people don't belive on it because they don't know the importance and impact of early starting.

when you start early then definately you do small big mistakes because of less knowledge and experience but here because of all these mistakes you will learn many things about investment and this help you to correct your wrong investment. but to make mistake you should be practically in the market and for this reason you have to start investing early.

When you do mistake then you understand what is wrong ?investing instrument or time or your investing capital or way and methods. you need to correct this mistakes to get the results in the furure but for this you need time and also knowledge and this is the main reason you have to start early so you will get more than enough time to learn from your previous mistakes and to gain required knowledge and correct your investment methods and plan.

Early starting gives you time to analyse your financial goals,your income and your investment ( if you have one or if you don't have any then to think about it ). it will give you a clear idea about what should be your future investment plan. and this only happens when you start to invest as early as possible and keep doing it.

This will also tell you in which instrument you should invest and at what time.
What should be your income to invest to build a strong portfolio.

Investing Early Build Risk Taking Ability

As you start early then you will learn about stock market, different investing instruments and about your current invesment. then because of all these practical knowledge you will able to analyse market and can take small, big risk to complete your financial goals in short as well as in long run.

invesment returns also depends on risk. high risk high returns is the formulae in the stock market but because of risk ability you can balance high risk for high returns.

It will build your risk taking ability for long term.
You will able to take advantages of different market condition with risk taking ability. so it will increase your returns.

In this first few years your will learn what is risk and how much risk you can take according to time period and investing instrument based on your past mistakes, risk ratio and their returns. this is much better than following and directly beliving on someone else.

Investing Early Create A Strong Portfolio

You will get enough time to analyse what investment can do in the long period and to look at your current financial situation, financial goals and invesment. you can figure out what things you need to make a strong portfolio so you can make a plan based on your financial goals to create a good portfolio in the future as you gain the experience through your small small investments.

even you start with single instrument like equity or mutual fund through sip then also you will need to create strong portfolio in the future to earn high returns in the long run and that can't be happen with single investing instrument.

you must invest in multiple investing option to earn good returns as you go ahead in the investing journey otherwise you should satisfy in traditional limited returns.

Balance your portfolio : Starting early has a big advantage that you can invest in multiple investing intruments like share, debentures, mutual funds, bonds and gain the knowlege of it practically and this will help you to balance your portfolio among investing instrument and help you to make strong one for long term so you will able to earn the multiple high returns in the future.

You can adjust your portfolio and balance it with previous mistakes, experience and new knowledge which is good and need it in investment because you need to do improvement regularly with study and incoming future to earn good returns.

long Term Benefits Of Investing Early

There are multiple advantages of starting investing early in life.

Creates strong knowledge Base : It will create your strong base of broad knowledge in investment by study and implementation which is must in investing beacause it has direct connetion to investing your money at right time in right investing instrument otherwise you will waste your time and later you are not able to take advantage of it.

Get Enough Time : If you start investing early when you in middle of college or at begin of your job then you will learn many things to know it and gain practical experience of investment and even you do mistakes in investing then also you can correct them and take right investment decision for big capital in future because early start allows you more than enough time to analyse your mistake and correct then. as you are in the investment your knowledge make you able to invest more money as per your previous experience and this is much better than just earning interest on savings.

Opportunities are not limited in market there are many but grabbing one is limited and it totally depends on you

Early start gives you more time to learn and understand the market for your investment to grow over time because company business is not depends only on one thing so it fluctuates in ups and downs period. based on this you can adjust your investment or make it more strong.
Good apps for watching and learning market regularly

Makes you take smart decisions : In this time you will build yourself to take long term decision to invest more amount in right equity stocks which result in good returns and it rarely happens in less time or in trading beacuse here other side you will do analysis of market and it surely helps you to make smart investment decision rather than sticking to other types becuase of fear.

Complete Small Financial goals : Early start acomplish many small financial needs and goals which you must need in your life at specific or before the time and that things are fixed for everyone like Education, Health, Home, job ,buisness and many small things for which all struggles to have it in their life on time.

If you start early you can learn many things and act according to it and even if you fail in some investment then also it's ok because you can correct that mistakes with proper solution and that will done in this time but here other people are not in investing and you will get more returns in 50% of time and other people don't, because they are not even thinking about future and investing.
Now may be you in others category but if you start then you will also be able to earn.

More investment more returns: Another advantage of invesing early is when other peoples knows it and start investing in future then your investment will grow more and more but for this you must have in investment before others.

Returns are depend on investment capital in market then more the investor more the capital in the market thus more the returns you will earn with same investment.

Long Term Retuns Examples:

Here are some examples are given to show you what can happen if you start investing early.

Stock: See the price of MRF tyres company which is more than 88,000(price can vary) per share in equity but it was at 1000 rs in year 2000 before 22 years .

Gold : See the gold price now it's near about Rs. 55000 per 10 grm but it was Rs.2000 in the year 2000.

You can also invest in digital gold that is gold bonds and can earn fixed good returns. the minimum investment is Rs. 4000 to 5000.

SIP: even you start sip of Rs. 500 or 1000 with current earning then also it will give very good returns in the long term of 15-20 years. also you can increase the amount of sip as your income increase in the future.

Above all are the practical examples for referance, inspiration, study to show you what can happen in long term if you start invesrting early.

What Investing Early Teaches You

How and where to invest money
How to analyze market
How to think and see the future investments
How to find good investing opportunities
How to control yourself and be stable in long run.

Conclusion

The conclusion of all this is you need to start investing as early as possible with small investment if you are not yet.
Even you have money or not ,have knowledge and experience or not until you put yourself in investing you can't gain knowledge of investment and can not earn the returns on it. starting is the key.

Lets Start To Invest

Search Topic,Subject,Query

Moneeasy