Talking to young people about investing early is one of Chris Linkas passions. With over 15 years of investing experience, Chris understands the importance of planning for retirement early in life. The younger a person is when they invest, the potential for greater returns. Here are some investing tips from Chris geared toward millennials and the youth of America (Blogwebpedia).
Chris says that the more time you have to invest, the more risks you can take. Since the biggest returns typically come from the most volatile investments, time can give you a better chance to endure some losses if you are taking more risk. If you choose to invest later in life, you may have to invest more cautiously.
The Power of Compound Interest
Compound interest is a powerful investment tool, and the younger you can take advantage of it the better. The power of compound interest is earning interest on interest, and Chris tries to explain to younger investors that constantly reinvesting that additional money earned from compound interest can lead to exponential returns.
Refining Spending Habits
As a younger investor, you will learn over time how to refine your spending habits. Chris notes that the power of time will teach you how to stick to a budget and learn the difference between essential and nonessential expenses. If you have lived a life of buying stuff on a whim, it will take much more work as an older investor to learn how to refine your spending habits.
Chris always encourages investors both young and old to continue learning as much as you can about investing. Another one of Chris’s mantras is to work hard as an investor because it is a time-consuming process. Chris recommends that you learn as much as you can about fees such as broker’s fees and commissions since these costs can eat up your profits over time.