Time is a great investment multiplier.
Start investing: Save Today And Reap Tomorrow
At the mall when you were younger and wanted every toy in sight, your mom would say “Money does not grow on trees” and give you that death stare. As that death stare pierces your soul and swiftly kills the dream of owning those new and shiny toys, you wished there was a money tree in the backyard to rescue you from the emptiness of losing those toys that were never yours. The desire for new and shiny things is natural and should not be a dream. Start investing today to grow your very own money tree. When you S.T.A.R.T. investing you Save Today And Reap Tomorrow.
3 Reasons why you should start investing right now
The best time to start investing is right now. Time is of the essence and time is on your side. People invest for many reasons, but these are the top three (3) and most popular reasons why people start investing right away:
Saving for the future – Put aside small amounts of money today in case there is a rainy day or crisis in the future. Unforeseen events do occur, so you need to have a secret stash to draw down on if the need arises.
Making a passive income – Let your money work for you. Investing in different instruments such as stocks, bonds, cryptocurrencies and real estate can provide a steady flow of income. Earn returns on your idle cash while you focus your passions elsewhere.
Gaining higher returns – Your investment can earn higher returns based on the type and the tenure of the investment instruments chosen. The longer the investment period, the greater the returns.
How to start investing money as a beginner?
Before you start investing in instruments such as stocks, bonds, cryptocurrencies, bitcoin or real estate, you should set SMART Investment Goals. Determine the purpose of your investment and consider the actions to be taken in order to get there. These investment goals will inform the time frame of your investment and the type of investment instrument that you will choose.
Start investing in stocks or real estate
Consider an investment goal such as purchasing real estate or stocks in the medium term if you have just decided to start investing. Buying real estate may take a longer period than obtaining stocks. Therefore, if you wanted to achieve this investment goal in 13 months or less, it would be more attainable to first purchase stocks then work towards getting that real estate since stocks can be achieved with less money and in a shorter time frame than real estate.
Tips to start investing: what investments to choose
The types of investments you choose to start with should be determined by the time frame in which you want to invest. The following represents alternative investment instruments for different time frames and will give you some tips to start investing and ideas on what investment instruments to choose:
Short Term – for investment goals that are one (1) year or less. Short term investments invest cash in a regular savings account or a fixed deposit account at the bank.
Medium Term – for investment goals that are between one (1) year and three (3) years. Medium term investments invest in stocks, short term bonds, unit trusts or mutual funds, bitcoins or cryptocurrencies.
Long Term - for investment goals that are from three (3) years to 10 years. Long term investments invest in stocks, long term bonds, real estate, mutual funds, retirement plans or annuities.
Remember our investment goals will determine the time frame of your investment and the type of investment instruments that are chosen. Based on your starting point and your investment goals, whether short term, medium term or long term, there is an investment instrument waiting for you. No matter what your investment goal or time frame you will benefit from a budget. Check out how to Create a Budget and use our free Personal Budget Tracker to start investing today. If you currently have little or no money to start investing then follow these Top 5 ways to save money now and quickly accumulate funds.
Final Word
Financial freedom does not come instantly. However, if you plant the seed early, the magic of time will see your small financial seed grow to a magnificent tree. Start investing today to capitalize on that passive income, gain higher returns and save for a rainy day in the future. Are you going to start investing today?