We are often told that ‘saving’ is a good and beneficial activity. No doubt it is: when you save your money in banks, you get some interest rate in return.

But why has this new concept called ‘investment’ emerged so much that everyone is talking of investing in certain securities and bonds?

Is investment healthy for the youth?

The maximum demography of our country exists as youth. They are smart, have access to knowledge, good at researching and analyzing anything before buying it: therefore, investment is a very good option for the youth.

For example, someone invests in their later age in life and generates a lot of money to retirement and other business ideas. But when a young person in his 20s starts investing he may have the following benefits:

• A lot of time to think about the investment. They will take their time to diversify their investment and make money from it.

• They learn in what pattern financial independence works and that they have to be disciplined in order to trade/invest appropriately.

• They will get more recovery time to manage/ balance their investment loss. Which is not possible at a later stage in life. Since they are tech-savvy they will not have problem  in using electronic medium for investment. 

• They will learn the habit of saving more because they will know that more they save, more money they could invest in future.

• “More is the risk, more is the reward”- youth has more risk-taking ability. That’s why they will understand that higher returns are possible by taking higher risks.

• They will have more chances of a secure future. They won’t have to borrow money for their needs. Eventually with time, they would be able to become financially dependent.

• Better retirement plans: They could have better options available after retirement.

• It is a better option than saving because you learn to diversify your financial sources and generate income.

Closing thoughts:

The purpose of investment is not just planning a safe retirement. Instead, having a continuous income and never having to worry about financial needs because you will have a streamlined income throughout your life. The ability to weather increased risk, and opportunities to increase future wages. Even if you have to start small, it's in your advantage to start early- these are some of the benefits of investing early in life; and pursue your hobbies tension free.

Good luck!