We all know how the old saying goes- The early bird gets the worm! When it comes to investing, the situation is pretty similar. Early investors have an edge over those with 8-10 years of investing experience. They are open to new-age investments and have years in their hand to try out new products.
Young, high earning professionals in India between the ages 30-35 are spending a lot of time learning about high-risk investments. Early investors are open to riskier investments and can spread their investment portfolio with traditional as well as alternative investments. So, let us take you through some smart investing habits that will greatly benefit budding investors.
1. The Magic of Compounding
One of the biggest benefits of investing early is maximising the power of compounding. Your assets should earn either capital gains or interest. By reinvesting, they should generate additional earnings over time. Compound interest results in the exponential growth of wealth over time.
For example, let us say one invests in asset leasing with Grip. Asset leasing is an asset-backed investment opportunity in which you can earn up to 21% pre-tax IRR.
As part of the investment, let us suppose the investor puts their money in Zypp, India’s largest tech enabled EV-as-a-Service Platform. They start with a minimum investment of ?15,000 and a lock-in tenure of 30 months. This gives them an earning potential of up to 21.5% pre tax return(IRR).
2. Spend Smartly
Investing early inculcates a habit of regular savings and investment. Most people save money that comes as residue after spending. But the financially literate ones put the residue of their savings in investments. If you are a beginner in the world of investments, then starting with a small investment amount in asset-backed investment options is highly recommended. Explore exciting asset-backed investments only on Grip and earn returns up to 22% IRR.
3. Invest in Short-Term
Putting money in a short-term investment plan is another great approach. Short term investment provides one with capital for reinvesting in either short term investment or long term higher returns. Grip offers a range of short term investment that offers an opportunity for early investors for creating wealth in 12 to 36 months. Do check out some attractive short term investments plans offered here on Grip.
4. Exposure To New Age Investment Options
The digital world offers a seamless network of financial information and knowledge. Investing early bestows one with ample time for research to explore various investment avenues with confidence. This lets investors make bold financial decisions that can prove to be profitable.
5. A Better Standard of Living
Investing early helps one live a disciplined financial lifestyle and rewards you with a higher standard of living. By investing, you put your hard-earned money at work that can bring home added revenue in the form of interest. It can be sufficiently utilised for the betterment of the standard of living of you and your family.
6. Early Fulfilment of Your Financial Goals
Investing early gives you a head-start towards achieving financial security. Be it buying a home, a car, or starting your own business. In some years, you will think of getting married and in a few more years will need to find money for your child's birth and education, both of which can drain your wealth. Investing early can provide you a strong financial backup and at the same time leave you with more time, energy, and money to fulfil your dreams.
7. Financially Secured Retirement
While retirement is hardly a point of concern when you are young, investments are meant to bring healthy returns that don’t just take care of you in your youth but also when one enters their golden years. So focus on short term investments that build capital for long term goals. The returns from smart investments can help you to not just achieve financial stability while you are young but enjoy a life of comfort and financial bliss as you age.
Also Read: How To Plan Your Early Retirement?
It would be recommended to start investing early with smaller savings and patiently wait for the investments to generate yields. Never shy away from contacting a financial advisor or a financial advisory firm to help you make sound investment decisions.
Thinking about investment from the day you start earning can change your life. At an early age you have lesser responsibilities and have a larger share of disposable income. Instead of blowing them away, why not take a grip of your spending and channel them in the right direction? Invest with Grip and watch your money grow substantially over the years!