Our schools don’t teach us much about investing and personal finance, so we might have to figure it out ourselves. It’s never too late or too early to start investing. The first thing you need to start investing is money so don’t forget to save some every month.
When and Why
Every individual has different financial needs, goals and requirements. These can be broadly classified in terms of their time requirement i.e. present, near future and distant future. To meet all these requirements we need to save and invest. Present requirements can be met through current cash flows or through past investments if made. If the requirement is not being met from self then you may postpone or forego the expense or take a loan.
With private banks promoting loans aggressively, taking loan becomes a convenient option but it has some cost attached to it and a part of your future income will be diverted to service the loan for some time. So, for meeting the present requirement you take a loan, pay heavy interest on it and most of the times it is very strange to see that people don’t even realize the kind of interest they are paying. Basically, you end up paying much more and the cost of your goals has gone up. Please ask this question to yourself: Do I earn to make banks richer? Do I earn to pay interest for servicing my loans? If one begins investing as soon he starts earning with his goals focussed, he will never end up falling short. So start saving and investing from a young age to give your money sufficient time to grow.