Although most young people don’t understand it, there are four (4) reasons why investing is important for young adults. It’s not about becoming rich.
There are many things that happen in life, which require large sums of money. However, when we are 22 years old or 32, we believe we have everything covered. It’s not clear how. We can only assume that the money will come or that the costs won’t. It doesn’t work that way, and any 42-year-old, especially, will tell you.
It is important to invest in the markets as soon as possible, and yes, safely. This will allow you to deal with the four crucial events that almost every person faces.
Four Money Needs
If you’re not prepared for these large cash demands, it can drain you of your savings and leave you with major debt for many years.
These are the 4 Key Money Needs
College is where you want children. 18 years later, the big bill arrives: $60-$120,000 for each child. It is long past the days when students worked their way through college. Nobody can make that much during summer break, or wash dishes in the student kitchen. Scholarships are available but not all can afford them.
You had children and now you are getting married. A moderate wedding for a daughter will cost ten grand ($10,000), while a large wedding will cost $25,000. It’s not easy to have a son. The rehearsal dinner for the wedding party and immediate families costs more than McDonald’s. These costs are multiplied by how many children you have and what gifts they get. Don’t forget to gift your child something that will become a family heirloom.
Retirement – Yes, almost everyone understands the importance of having a retirement account. This can be one that you create yourself or one that your employer sets up. Sadly, less than half of people have one. Even worse, 25% don’t have enough money to support their retirement. There is social security. However, if you are looking to downsize to a simple one-bedroom apartment with a kitchenette, you should limit your trips to the grocery store. You can only purchase food coupons for that particular item.
The Unmentionables: These are the expenses that no one wants to discuss, budget, or deal with, but they are important and not cheap.
Funerals – Yours, your spouse, or a child?
Dental work – A crown on a tooth costs $1,500 plus
Take care of a sick parent
A gift for your grandchildren or children
When you retire, dream vacation
Most adults who invest in the market don’t begin until it’s too late or too late. It’s now that you can start safe, profitable investing to help pay these major, almost certain expenses.
Even if you only start with a small amount, each month it will grow. A good investment program that is based on relative strength investing and can be tailored to your preferences and goals will allow you to make profitable investments.