7 Reasons Why You Need to Start Investing Today

If you have any sort of income coming your way, you’ve probably been advised on what to do with it – whether you’ve asked for the advice or not.

I know once I started working full time out of college, I had tons of friends and family who had all sorts of opinions on what I should do with my money.

One of those opinions included the option of investing a portion of my money in the stock market. I understood the pull – some money now equalled the possibility of more money later… but I didn’t know the timeline. Should I start investing right then and there or should I wait until I was more “established?”

I came to find that the best time to invest is now. If you’re on the fence about investing, here’s the reasons why you should make the leap and go for it:

Investing gets you familiar with the world of finances

One of the best ways to become comfortable with handling your finances and learning about financial responsibility is to start investing! Whether you decide to start with investing a small sum and using an easy-to-use investment app, or you meet with a financial professional to invest your yearly raise in a diverse portfolio, informed investing is always a good idea. 

Doing your research and finding out the fees associated with each investment option, the tax benefits of a retirement investment account, and how to watch your investments rise and fall with peace of mind can be a great practice in understanding much of the financial world.

If you’ve ever felt out of your league when discussing financial topics, understanding your investments will certainly give you knowledge and familiarity that will serve you well for the rest of your life.

I’ve certainly been at a loss when family members have brought up certain financial topics, but now I can keep up when they talk about investing.

Investing gets you ready for retirement

One of the most important goals for investing is saving for retirement. I know, it might seem boring and probably daunting to think about your life as a retiree, but you’ll definitely thank yourself later when you’re playing golf with your friends years down the road, and you’re able to pay your living expenses without missing a beat.

One of the best financial choices you’ll make is to plan and save for your upcoming retirement.

It’s never too late or too early to start. And the most efficient way to “save” for retirement is to invest your dollars in a portfolio or opportunity that will grow as time goes on.

Most of us could never save for retirement just with a savings account with little interest; we need to have our nest egg build over time.

If you’re interested in investing, retirement is a great first place to start. This was the first way that I started investing my funds, once I had a steady income.

It’s given me so much peace of mind about the future! Once you have a good handle on your retirement, it’s time to talk about investing for more recreational reasons…

Investing gets you more financial freedom

Do you have a vacation you’re dying to take? Maybe a home renovation you’ve been planning and can’t yet afford?

You can invest with specific goals in mind and watch your money grow. 

Putting aside money by investing can help you reach specific financial goals. If you want to take an year anniversary trip with your spouse in a few years, why not invest money now to take a more extravagant trip than you could with just your savings account?

The return on your investment can make the difference between a run of the mill getaway and a lavish trip to Paris. Who wouldn’t want the upgrade!

Investing gets your money to work for you

When it comes down to it, investing is the best way to make your money work for you. It doesn’t always make sense to have large sums of money sitting in savings (it might seem “safe,” but it can hinder your financial success in the long run). 

If you had an employee that sat around all day and never brought any value to your business, you’d certainly fire them. Why don’t we see our money the same way? It’s time to stop keeping large sums in savings and putting our money to work in the stock market.

Of course, it is important to have an emergency fund in case of an unexpected expense (and you might want to keep this in an easily accessible savings account), but after you’ve secured this important resource, you can take your other savings and buy into some investments. Funds that you don’t need to dip into in the near future shouldn’t just be sitting in a stagnant account – they should be growing in an investment account!

Once my husband and I had established an emergency fund we felt comfortable with, we moved any excess savings over into an investment account. It feels great to have our money working for us!

Investing balances your life

As much as we talk about financial security for ourselves, something must be said about the importance of a balanced financial life.

Most of us have the desire to live comfortably, while also giving to others in some capacity.

Do you desire to be a generous person? Do you have a cause or charity that you’re passionate about? Without income, it’s hard to support these causes. Investing your money now can provide you with a way to support the things that really matter to you later. 

Who wouldn’t want to leave this sort of legacy? I know my husband and I do. One of our favorite perks to starting investing is the opportunity we’ll have later in life to be generous in our circles.

Investing gets you to create healthy money habits

Budgeting, saving, paying bills in a timely manner, and watching your credit score are all great ways to stay on top of your “financial health.” But have you ever thought of contributing monthly to your investment accounts as part of your financial plan? 

You might start with contributing to a retirement account at work, or opening a standard investment account that you can contribute to directly from your paycheck. This is a great way to stay financially “healthy,” and to be proactive about your future financial status.

It’s a practical way to reach your future financial goals.

Investing gets you in a practice of delayed gratification

Did you know that the ability to practice delayed gratification is a common trait present among extremely successful people? Investing is certainly a practice in delayed gratification. For long-term goals, you’ll need to set aside money and wait to withdraw the funds for years. If you contribute to an investment account monthly, you’ll have to sacrifice a portion of your paycheck each month that could be extra disposable income.

Sacrificing now for your future can provide you with so many options later, and it’s a great example of delayed gratification. 

This act of self control can start a positive chain of events in your life, and provide long-run financial success, rather than just financial stability now. 

By taking any sum of money and setting it aside to invest today, you will reap the benefits for years to come. My grandparents opened some investments for me when I was a kid, and twenty years later, I’m benefitting from their thinking ahead.

Right now, I’m still in the sacrificial stage of investing, putting a portion of my income toward my retirement account and investing in a standard investment account to be able to one day buy a nicer car!

I know that one day I’ll thank my past self for giving up a little money now to have a lot of money later, and you will too!

Contributor’s opinions are their own. Always do your own due diligence before investing.

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