Young Investor: 4 Benefits Of Investing Since Young

Young Investor: 4 Benefits Of Investing Since Young

investment is not something foreign to everyone. Basically, investment is the activity of investing in a company or asset with a high value with the aim of getting multiple profits in the future.

That way, investing is often associated with only people who are already working and have a high income who can invest. maybe it was ancient times which was clearly different from today. Now, the millennial generation can invest from an early age.

Indeed, in fact, many millennials are still not familiar with investing because among them it is still difficult to leave a high lifestyle such as shopping to hanging out in cafes. Even though current investment does not require large capital, just $ 100 is enough, millennials can invest.

Young Investor: 4 Benefits Of Investing Since Young

Even though the investment capital is small, if you started young, you can feel many benefits later on. However, this is of course with the right type of investment.

1. Asset Value and Wealth will Increase

Investment can automatically increase the value of assets and wealth owned. The assets referred to here are not limited to buildings or other properties, but money held or stored as investment funds can also be classified as assets.

If these assets are set aside for investment, they will certainly grow more and more. The development of assets is of course directly proportional to the development of wealth owned.

2. Freedom in terms of finance

Being financially independent means being financially free. It is said to be free because it can support daily needs with the wealth it has without having to work hard.

If invested assets can bring in more money that can fill the coffers of the account. From this advantage, you can use it to meet your needs without worrying about your financial condition.

3. Avoid Inflation

Inflation can be said to be a natural thing that occurs in every country. Every country must experience inflation, although at different levels.

Inflation almost has a significant effect on the economy, especially in terms of buying and selling, because it can weaken people’s purchasing power. For this reason, investment is one way that can be taken to avoid inflation.

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4. Prepare for a Bright Future

Entering old age, although the desire to work is still there and wants to be fulfilled, physically it is no longer able to fulfill it. In old age, the income earned will automatically decrease compared to the productive age.

So investing since young is a way to help prepare for a brighter old age. Investments that are planned and started now will certainly help meet future needs.

Types of Investments that Can be Tried By Young Investor

To start investing, of course, you must first understand the types of investment. This is done to determine the investment that is suitable and suitable for the millennial generation

1. Gold

Gold can be said to be the easiest investment and the most classic thing. Gold investment can be in the form of precious metals, gold jewelry, gold bullion, and gold vouchers (digital gold). However, the drawback of this investment lies in its storage.

It is recommended that gold investment storage use a Safe Deposit Box provided by certain banks. If you don’t use these services, storage can also be done independently by using a personal safe to avoid unwanted things.

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2. Deposits

If you have money but want to save it for a long enough time, you can use a deposit. Deposits are actually classified as savings but have a certain period of time-based on an agreement with the customer. Usually, the deposit period is between 3.6 to 12 months.

Deposits have three types to choose from according to the abilities of the millennial generation, namely time deposits, certificates of deposit, and deposits on call.

3. Property

Land and other properties can be categorized as classical investments because their existence has been around for a long time. Investing in this field is quite easy because it is only done with a simple system.

If you want to invest in this field, of course, you need quite a lot of capital, although it cannot be denied that the benefits you get are also quite large.

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4. Bonds

Bonds or debt securities can simply be said to be investment loans. Investing in bonds means that we provide loans to bond owners. Bond issuers can be government or companies.

Forex trading is an investment concept by trading foreign currencies. Forex trading is still unfamiliar to most people hear and do because investing in this field has a very high risk. Even though the benefits are the same as high. Another advantage of forex trading is that it has a short period of time.

5. Foreign Exchange

Foreign exchange (forex) has often been heard of in the world of economy and finance. Foreign exchange is actually the currency that is used as a means of payment in international trade, such as dollars, euros, and pounds.

The principle of investing in this field is actually almost the same as forex trading, it’s just that only currencies that are traded are recognized as means of paying for international trade. Foreign currency can be bought when prices are down and sold when prices are rising, and the difference can be an advantage for investors.

The weakness of this type of investment is the instability of currency exchange rates which can be influenced by several factors, for example, the political or social conditions of a country.

Become a Smart Young Investor

The important thing that millennials need to know in investing is to be a smart investor and don’t just follow other people.

Determine your investment goals first, then select the type of investment that suits your needs. In addition, in order to avoid losses, still control the investment made.

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