With an economy struggling to get back on its feet in addition to the uproar over Facebook’s recent stock market fumble, it’s easy to see why young adults are not interesting in investing their money.
But the slow economy isn’t the only reason 20-somethings are weary of getting involved in the stock market. Here are some reasons why you may put investing on the backburner and some reasons why you shouldn’t:
It’s too complicated.
There’s no time like the present — start doing your research now.
Read the money section of a local or national newspaper and start getting familiar with the lingo and concepts used on Wall Street. Google what you don’t know. Talk to friends who major in economics or finance about what’s going on in the stock market today.
There are so many ways to start investing your money. You just have to find out a method that works best for you.
You have enough money to eat, buy books and do laundry — but not much left for anything else.
This is a reality for many college students, but start trying to save what you can now so you’ll have money to invest in the future. If you can’t manage the little money you currently have, you probably won’t be any better at managing your funds when the paychecks get a bit larger.
What’s the point?
The point is that you can make money.
Especially in the stock market, you are more likely to increase money over time than lose money. Investing is not your average “get rich quick” scheme, but a serious decision to make if you want to gradually see increasing returns. Furthermore, shareholders own pieces of the company therefore have a say in how the company is run.
It’s too risky.
As with most life decisions, deciding to invest your money in stocks or bonds comes with risks. You could make a lot of money or end up with less than before. This is where doing your research will come in handy. Instead of jumping right into buying stock, look into alternative ways to invest like mutual funds.
I’m too young.
You’re never too young to learn how to manage your money. Investing is an opportunity to reverse our generation’s need for instant gratification and to sit back and reap benefits over time.
Timothy Olsen, a graduate of Louisiana State University with a degree in finance, wrote a book about investing when he was only 13 years old. He bought his first stock in PepsiCo when he was eight years old. He is proof that now is the time for your generation to start investing.
Choosing to invest does not guarantee you’ll be the next Donald Trump or Warren Buffet, but it is something younger people should look into.
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