Why now could be the perfect time to start your investment journey
Many future investors begin to think about investing after a major life event. Maybe it was a marriage or a first child, or the dream of buying a new house or retiring comfortably. Whatever the reason, investment is the path towards building wealth and purchasing those important items in the future.
Investing is easy and accessible with technology and the internet. You also don’t need thousands of dollars to begin. Time is your most important asset.
In this article, we will talk about what makes investing such a good idea, and why today is the day to start. We will talk about some of the major benefits, a few of the important risks you need to be aware of, and three powerful reasons to start today. Read on!
Investing – The Benefits
By far the most important benefit of investing is that you can use today’s dollars to build future wealth. Time = money. Investing, at its core, means putting money into an item with the expectation that the item will be more valuable in the future. We call those items assets.
An example is buying a house, paying for repairs, and selling the house in three years for twice the original cost. But also, in our house example, maybe you rent a room in the house and receive extra money before selling the house.
Other benefits include creating extra money for today, staying ahead of inflation, saving on taxes, and meeting some of the following financial goals:
- Saving for retirement
- Buying a house
- Paying for a university education
- Going on a vacation
- Paying down debt
- Creating financial freedom
Investing – The Risks
While investing does have huge benefits, it also has risks that every investor needs to understand. The most important risk an asset, like a house, won’t be more valuable tomorrow than it is today. This can happen for different reasons, such as the local economic problems, increasing interest rates, or problems with the home’s foundation.
Some assets, such as cryptocurrencies, are riskier than others, such as government bonds. New investors need to understand how much risk they are willing to take and the best financial products for them. The Utraz Risk Calculator can help you start understanding your risk profile.
Three Powerful Reasons to Start Your Investing Journey Now
With a basic review of investing out of the way, now we can now look at three powerful reasons to start your investing journey now. We believe this is a unique time for first-time investors to start investing. Why? Below are three reasons.
Reason #1: New investors can begin with as little as £10.
You don’t need to break the bank to start investing. Modern investing has enabled anyone to begin with just a bank account and a few dollars. You could start with a small investment in one stock, or purchase a share of a mutual fund.
Reason #2: Technology makes investing easy and accessible.
Never in history has it been so easy to get started investing. With just a bank account and an internet connection, you can start your investing journey. You can meet with an adviser, research companies to invest in, and make an investment in your future – all from your home.
Reason #3: Interest rates are at record lows.
Interest rates are created by banks and determine how much it costs you to borrow money. While investors can get started with just a few pounds, many will need to borrow money to purchase an asset, such as a stock or government bond. When rates are low, the cost to borrow money is cheaper. Cheaper borrowing means a better chance for future returns.
Investing is a big life decision and we recommend that you carry out as much research as possible before putting your capital at risk, there are many great examples of resources out there to help.