The importance of investing sooner rather than later23rd Aug, 2017
Investing at an early stage in life is one of the best decisions one can ever make. We are currently living in a world where instant gratification is valued more; we want to put our future on hold for the sake of satisfying our current needs. The ‘You Only Live Once’ (YOLO) Mentality is a trend that a number of us have given in to. Let’s face it; this way of thinking is all wrong!
Why is it important to start investing now rather than later? Here are three main reasons you need to think about.
- Time is Everything
The earlier you invest, the higher the likelihood of yielding more return on investments. When you begin investing right away, the principle of compounding increases your earnings over time.
An amount invested in your 20s for example, would give you more than double the returns of your original amount when you are in your 40s. Now it may not make sense to think about investing in your future when you are in your 20s because of your financial instabilities, however, this is actually a perfect time to infiltrate the investing world, even with lower disposable incomes and college fees obligations.
- Learning the How’s
Making investments at an earlier stage in your life prompts the need to gain further knowledge on strategies that can be applied. Since investing has a significantly extensive learning curve, young adults have an upper hand because they have years to study the markets and cultivate their investing strategies. As with the increased risk, they can also overcome investing mistakes as they have ample time to recover.
- Take on More Risk
The sooner you get into making investments, the better for you to handle risks accordingly. Did you know that an investor’s age influences the degree of risk taken? The millennials have more years of making money, therefore, can manage to take on greater risk in their investment activities due to their aggressive and volatility nature.
Investing in shares, for instance, has high risks but there is a likelihood of gaining significantly from them. Since 2014, KCB Capital has acquired trading rights on the Nairobi Security Exchange which means that they can help you trade shares of different companies within the stock exchange market.
Take a leap of faith and Invest with KCB Capital today!
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