How the Hare Discovered Investing at an Early Age
Investing always seemed like an exciting concept to the Hare, since it appeared to be a good way to increase your money with little work needed. But the Hare wasn’t quite sure how to get started – or when to get started for that matter. After some quick research, here are a few things he learned about getting started with investment strategies.
The Earlier, the Better
The Hare learned quickly that the earlier you begin investing, your initial investments will have more time to grow and increase one’s personal wealth (The Balance 20191). He also learned that saving for retirement while he is still young could help him to retire much earlier.
Understand the Risks and Benefits
There are inherent risks and benefits to investing, so the Hare had to determine which was more important for his life. For example, investing can cut into initial earnings, leaving the Hare with less money from his paycheck to use right now. The benefit to this is that these earning he has invested can compound over the years and add up to much more than they were initially (Investopedia 20203)!
But Hare also understands that aggressive investing can lead to huge losses in bear markets and investing involves risk including the possible loss of principal (The Balance 20191)
Invest Each Decade (Investopedia 20203)
There are certain investments the Hare should make during each decade of his adult life to reap the best benefits. During his 30s, he should focus on investing in any stock funds or bonds, and potentially look at getting into the real estate market. As he gets older, he should focus on diversifying his income streams and adjusting his investments according to where life takes him.
Invest in Yourself
The Hare is considering going back to school to get an advanced degree or find ways to increase his professional skills and certifications. These skill and education upgrades could help pave possibilities toward a new, higher paying job or promotion (The Simple Dollar 20152). The Hare understands that increasing your earnings at a young age will give you that much more to invest in later years!
The Hare learned a lot about the importance of starting is investment strategy early in life. He now understands that how you invest each decade will impact when he can safely retire and how his invested assets might grow. Now, he can focus on enjoying his day-to-day life!
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