top reasons why you should be investing right now

Category : Adventure | Posted On Apr 27, 2017

You should really start investing right now.

It doesn’t matter how much money you have. It doesn’t matter how old you are.

It doesn’t matter how much you know about investing, or whether you’re worried about what the markets are going to do, or whether you’ve never even heard of “the markets.”

You should start investing now, no matter what. Here are seven reasons why.

1.Your Freedom Is at Stake

Investing isn’t about getting rich. It’s about one day having the financial freedom of being able to support yourself without an income.

Because here’s the truth: At some point you’re going to have to stop working. The only question is whether you’ll be forced to stop before you’re financially prepared, or whether you’ll be able to choose to stop on your own terms.

And the only person who can make sure you’re able to do it on your own terms is you. Nobody is going to give you the money you need to support yourself without an income. Beyond Social Security, it’s all on you to save up as much as you need.

So your freedom really is at stake here. And there’s no better time to start creating it than right now.

2.Free Money

If you work for a company that offers a 401(k), there’s a good chance they also offer some kind of employer match. That simply means they will match your 401(k) contributions dollar-for-dollar up to a certain point.

For example, a typical employer match might be something like 100% of the first 3% of your salary that you contribute. That means that if you contribute 3% of your salary to your 401(k) each paycheck, your employer will also contribute 3% of your paycheck on your behalf — on top of your regular salary.

That’s free money! In this example, you would immediately double your retirement savings just by being willing to save a little bit. It’s the best return on investment you’ll find anywhere, and it’s absolutely something you should take advantage of if you can.

3.Compound Interest

“Money makes money. And the money that money makes, makes more money.” –Ben Franklin

Let’s say you invest $1,000 this year and it earns a 10% return. That means you make $100 and you’re left with $1,100 in your account.

Now let’s say you can’t contribute anything the next year, but you still earn that same 10% return. Well, instead of $100, you’ll actually earn $110 because that 10% return is on your new, bigger $1,100 balance.

That is the power of compound interest. Without you having to do anything, your money keeps earning more and more money all on its own.

It’s also the real power of investing, and the longer you expose your money to the power of compound interest, the bigger the gains will be.

4.Starting Can Be Easy

Investing doesn’t have to be super-complicated or time-consuming. And you don’t have to be rich either.

There are plenty of easy ways to get started without having a ton of money and without being the world’s foremost investment expert.

One way is to start with your 401(k) match, like we talked about above. It’s simple, it’s quick, there are no minimum contribution requirements, and of course it’s free money! Who doesn’t like that?

5.There’s No Time Like Today

“The best time to plant a tree was 20 years ago. The second best time is now.” — Chinese proverb

All of this obviously applies if you’re in your 20s or 30s with decades before retirement. But what if you’re a little bit older than that? Is it too late to start?

Absolutely not.

You can’t change what’s already happened, but you can start doing things differently right now. And every little bit counts. No matter where you are in life, you should start investing right now.

Remember, your freedom depends on it.