We all want to be wealthy, don’t we? But unfortunately, we millennials lack the mindset that all wealthy people around the world have one thing in common: the investing mindset. And to bring up investing mindset, firstly we need to have a saving mindset which we, again, unfortunately, are missing too.
Our generation, especially teenagers, who have lived even less than the quarter of our life is extremely present-oriented. For instance, if we get a pocket money from our parents, most of us in hesitantly spend it all within its first week without having any second thoughts on savings. Though the savings from pocket money might seem very insignificant to many, we can use that saved-money to invest in a product or service with a good annual return. Then over the course of time with the magical power of compound interest, one could retire with an ease with a balance that could feed him/her with comfort for the rest of his/her life. And to make the most out of compound interest- the early we start, the better.
Similarly, investing those savings can be more lucrative. Due to globalization and the rapid recent growth in fintech, we can be a global investor. We have a lot of investment opportunities around us like FOREX market, Stock market, Commodities market and Cryptocurrency market. We need to be well informed on whatever we are investing as investing obviously involves risk. To invest wisely, first we need to study the market, the books written by investors, open a demo account, and then after we have enough confidence in ourselves, we should get started.
But again, one thing we need to keep in our mind while investing is not taking the help of leverage for our investment. That can be extremely dangerous. Sometimes, in an attempt to maximize our return, we take the help of leverage completely and lose all of our money at once. So, the most important thing while saving and investing is a sheer patience. That is a must
To put it in a nutshell, let’s make a habit of saving and use that accumulated savings to invest in a profitable sector to take the magical advantage of compound interest. And the earlier we start, the better while making sure that we play safe along with maintaining utmost patience.By Dipesh Poudel
By Dipesh Poudel
Dipesh is a high school graduate from Chelsea International Academy.