You've probably heard the stories of how college students, fresh out of school with their shiny new degree, buy a house or apartment and suddenly get hit with a $1500+ electricity bill. It's no secret that young people are not the most financially savvy bunch, but don't let your mistakes keep you from building on your future success. One of the best ways to start saving for your future is investing.
A young person with $100k invested has a great chance at creating financial freedom before even earning $40,000 per year if they stay on their path. The same can be said for those who have been in the workforce a few years & make the decision that now is the time to jump into the market.
Take me, for example. I was about 26 when I began investing full-time, and now at 29, my net worth is around $450,000. Had I waited until after college or grad school, or hell maybe even until after the first kid got out of diapers, it would have significantly delayed my ability to retire early. The thing is, from a dollar figure perspective, I have been investing for about five years now…but in that time, I've only made a little over $50k at my day job. If you know what you're doing and start young, it doesn't have to take forever to build significant wealth.
What I'm saying is that if you're a young person and just starting out, begin investing today! The market isn't going to wait for you unless you're willing to wait for it. Of course, nothing is guaranteed and everyone's situation is different, but if you get a better understanding of the benefits that come with early investment and start to live below your means by putting money into the market, you may be able to retire earlier than you expected.
That's not to say it's an easy road if you're young; with all the student loans and credit card debt I'm sure some of us are swimming in, young folks still need to start somewhere. You don't necessarily need to purchase real estate or individual stocks to get started – mutual funds and exchange-traded funds (ETFs) are great options for those who don't have a large, lump sum of cash to invest at once.
The bottom line: if you're young, start investing now, the rewards will come later.
