The other day I was slaving away, doing my homework (you guess, homework from COLLEGE professors!) and what not when my father called me to his room.Tossing my book right away, I went into his room.
Blankness gripped me as instead of inquiring about any other thing in the world, he wanted to know about my financial portfolio. And I could not form a coherent answer, pretty obvious!
I am 18!
I need to make my own financial decisions!
I need to know what being a separate entity in the eyes of law means! And of course need to have a financial portfolio!
In heaven’s name I needed answers to the questions that were now “Is now the time for me to focus on my finances, my portfolio? ”
“Will waiting to start, harm me in the long run?”
“Being a student, how will I have money in the first place?”
“I know nothing about it and everyone knows how risky it is”
And as they say, it’s never too late! I started off with my research about my to-be-financial-portfolio.
We as Young investors have to contribute less to make more money over time than older investors. This can be attributed to compounding. Every month saving a small amount definitely results in a larger gain at the end term, rather than saving more for a shorter period of time. “You are never too late to start investing”.
As students our major source of income, well for most of us, is our pocket money. Still most of us can easily find at least a small amount of money to invest on a monthly or yearly basis. The power of compounding creates a golden opportunity for young investors, even those on a tight budget (so that makes it applicable for girls too, shopaholics to be precise!)).
But wait; right at someone’s mention of investment in certain commodities, I am instantly transported back in time to the 2008 stock market crash and its harsh after-effects. Likewise, I guess, many of you are keenly aware of the economic crisis and the resulting chaos that ensued posing for all, a million dollar question- ‘How do we manage investing in stocks and shares while keeping away from high risks?’
Here’s the very answer to this- young investors with a low risk tolerance, especially those belonging to a lower income bracket can select more conservative portfolios, like investing in gold, save money in a savings account and buying bonds. Investors with a higher tolerance for risk can enter more aggressive positions with higher reward potential.
This age, I know, you all must be giving into distractions, be it your friends, hobbies and what not. True that, I am no exception! But why not start pondering over your financial portfolio and be a part of the clan that invests and young and makes it big!
Guess I’d start building my portfolio right away! And even you would, right?
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