Investing: How soon should you start?
When it comes to investing in the stock market when you start to invest plays a crucial part in how successful you may become in it. However, managing a well-timed investment is easier said than done. Aside from your financial situation, the market’s condition and your tolerance for risks, all play a major role.
Investing typically takes time to see returns, making early investments that much valuable. However, while investing, you must be prepared for the money you invest to be tied up for some time to gain maximum returns in the long run. (Here’s our post on the differences between investing and trading)
Cutting to the chase, investing as early as possible is the best time to invest. That is if you qualify the following three points:
- You have no major debts
- You have an emergency fund of at least 3 months basic income in case you lose your job
- You have enough money to cover essential expenses
One thing to remember when initiating to invest is that saving is a habit. It is a habit that has only benefits and no drawbacks. Ergo, it is better to save as early as possible so that you have sufficient funds to invest later on. For adults who are salaried, this can be achieved by setting aside 10-15% of your monthly basic income however small the amount may feel because a little goes a long way. Another important thing to note for parents is to have their kids learn the habit of saving as soon as they are mature enough. This can be achieved by providing money for chores and making them responsible for their extra expenses from that amount. This not only makes them have an understanding about saving from a young age but allows them to make smarter decisions when they’re older.
Whether you are 12, 20, 03 52, investing today is always better than investing tomorrow as investing early ensures solid returns in the long run.
At Zeal, we not only provide you with technical tools to make the right decision at the right time but also allow you to invest in various Halal and ethical asset classes to achieve your investment goals. Read more about our Shariah-compliant services here.
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