It is highly recommended that everyone start investing as early as possible, but it can be a very scary realm to approach when you lack the knowledge of how stocks work. It is common to be steered away after looking at all of the confusing charts and values. The problem is many people decide to invest “later” or when they are finally comfortable with the idea of owning a stock or share and end out putting it off until it’s too late. Everyday you wait to invest is going to hurt you in the long run because you miss out on Compounding Interest and a market which is constantly changing and increasing in value. The money in your savings account relies on a small yearly interest that, in the future, may cause the money to go to waste. Depreciation is real and the best way to avoid it is by putting some savings and earnings into the stock market.
I personally started investing as soon as I turned 18 without any guidance or advice. Acorns helped me do so by providing me with an easy to use system with automated portfolios. These portfolios are designed for your specific income level, financial goals, and how long you plan to invest. Acorns invests the spare change that is left over from your everyday purchases. Instead of collecting coins and taking them to the store to pay a fee to cash them, Acorns invests the spare change into the stock market. If you make a card purchase for $3.26, you will automatically invest the remaining $0.74. Acorns is truly an amazing program that allows you to save money effortlessly and start making good investment choices for your future, even without knowing anything about a good or bad stock. Over the course of 2 months, I accumulated over $200 in my portfolio from spare change and was able to withdraw any amount needed.
If the idea of investing is still fuzzy to you, it is the process of expending a sum of money towards a company or product while expecting to receive a profit in the future. Lets say 1 share of a company stock is worth $2. You purchase one share and keep it for five years. By this time, the company has exploded in growth and now has shares worth $200. You have could then sell your share and make a profit of $198. In reality, you would have bought a lot more shares, which would have rewared you with a much larger profit. Say you had actually purchased 10,000 shares, which at the time were worth $20,000. After the same 5 years, you would be about to sell them for $2,000,000. Investing offers these amazing opportunities when you approach it with proper knowledge and smarts, but you have to start somewhere. I advise you to consider starting with a program like Acorns or Wealth front today in order to give yourself a financial advantage in the future. Start investing with Acorns and get an additional $5 when you join.