At an early age, we were already taught how to save money. As we grow older and start earning on our own, we are introduced to other types of investment for the different stages of our lives.
Investing in your 20s
Although investing in your 20’s might be challenging, you should consider doing so. Investing feels like such a big decision with a bigger responsibility, but it is a long term process with longer effects. Investing now means investing for the future — one way or another, it could save you from some of tomorrow’s troubles. Wouldn’t you want to have ready cash for all the things you would have to worry about someday?
You can dive into different kinds of investments. You can start small, or take the risk and go all-in. But if you want to start conservatively, some investments have fewer risks, such as investing in real estate. Of course, you could consider bonds, which are likewise considered to be relatively safe, but such safety comes with a catch: government bonds have very low yields, i.e. the safer the bond investment, the lower the interest rate of return. Government bonds, considered almost risk free, have very low yields. They frequently have yields below inflation. Real estate, on the other hand, tends to appreciate – this means that what you pay for today will be worth a lot more when you sell it in the future. So, if you make the effort to set your priorities and manage your finances properly as early as now, you could see your life getting easier on your 30’s, 40’s and 50’s.
30 and Beyond!
Imagine starting your family. You’ll need to pay for your wedding and that’s not a small deal. Weddings require a fortune depending how big or small and no matter how small you plan it, there are still costs. Let’s assume that you and your potential spouse will be dividing the cost of the wedding between yourselves. Next, you’ll probably be wanting to purchase a home, a car and furniture. Then, when you start having kids, it’ll be a whole new ball game, of which milk and diapers will be just the beginning.
Having resources (be it through investments or savings) set aside would be of big help in the future, reducing worries on debt or totally being able to avoid borrowing money at all. Knowing that your salary isn’t your only source of income could help you ease your way through the beginning of family life. Try to consider creating a small online business or investing in a property that will yield steady rental income.
Investment in your 40’s
Parenting doesn’t end at birth. After all the milk, the vaccines and the diapers, you will be dealing with sending your kids to school. When your kids are in school, your investment will help you pay for school supplies and tuition fees. Imagine having to save cent after cent just to send your kid to a decent school. Investing gives you breathing space to still have extra money to spend. If the stars align and your investments are racking in a lot of money, imagine being able to start investing in a business such as a small franchise to sustain you and your family’s needs and expenditures. You just have to play your cards right.
Reaping the benefits of your investments in your 50’s
After 16+ years of education for your children, you can finally take some time to slow down and relax – you’ve earned it. Imagine being able to retire, secure in the knowledge that you were able to provide a comfortable life for your family. Imagine having enough funds to see the world. Who wouldn’t want to reap the fruit of their hard labor? You wouldn’t have to dwell on debt because you invested early, and there’s no better time than when you start working.
Investments might have its ups and downs but having more than one source of income would never be wrong in a world of uncertainty. To learn how to play the investment game would be the best for someone who has a lot of goals and aspirations in life and you can start doing so today.