Why You Should Start Investing Early?

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Author: Ms. Taing Souheang

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Posted on 19-Jun-2018

Early birds catch the worms” means that those who start first have a better chance of success. This idea is similar to investment; you can gain the benefit over time from long-term investment. The profit gained from investment will grow from time to time and you can reinvest it to gain more. As you start investing early, you will have more time for compounding interests. Compounding interests refer to the interest generating from interest overtime. Therefore, the longer you invest the more money you can earn.

However, as the price of stock goes up and down all the time, your money may be gained from or lost in your investment. If you are investing early, you will have time to research and explore more about the stock market. Additionally, you will have years to win or lose your money, as well as to learn from your investment experiences and figure out a better strategy to reinvest.

On the other hand, the value of money tends to decrease from time to time due to the inflation as the price of products is increased from year to year. The same amount of income will not be able to cover your living expense in the near future. You have to increase the value of your assets or make extra income in order to keep up with the inflation. You can start trading any securities, for example stocks, which can earn you dividend every year as well as profit from selling stocks when the price increases.

In summary, investing is like planting a tree; the longer it grows the more fruitful it can be. Therefore, you should use the advantage of time to earn and reinvest for more. Also, investment is considered to be a great tool to keep up with the pace of inflation as well, as it helps to grow your money from time to time.