Investing. It sounds like something older people do. Or that you need to have a finance degree to do. Right?
Investing is something you can never start too early because the earlier you start, the more time your money has to grow.
“It takes far less to save and invest when you’re young instead of waiting until you’re older and needing to catch up,” said Winnie Sun, a financial advisor and founding partner of Sun Group Wealth Partners.
Lucas Bianculli, a senior at Binghamton University double majoring in financial economics and environmental economics, started investing in the summer of 2020.
“Because of the stock market crash back when Covid started but after learning about the basics I realized how important [investing] was,” Bianculli said. “Many people don’t really realize how early you have to start investing in order to save up for something like retirement or if you want to buy a home in the future.”
Lucas Bianculli, a senior at Binghamton University double majoring in Financial Economics and Environmental Economics, has most of his money invested in total market index funds.
Source: Lucas Bianculli
So, what does it actually mean to invest?
Investing is putting your money into different assets such as stocks, bonds, mutual funds, cryptocurrency, NFTs, etc. There are a lot of ways to invest! But the goal is always the same: to grow your money. So, you buy a stock at $10, the price goes up to $15, you now have $15 because you invested. By the time you’re 30, that stock could be worth $25, $50 or more.
One of the main growth drivers when it comes to investing is something called compound interest. This means that interest accrues on both the initial deposit and the accumulated interest from previous periods. So, to use the above example, if you buy a stock for $10 and it goes up to $15, then that stock goes up another 10%. You’re getting 10% not just on your original investment of $10 but on the extra $5 that you made initially.
“The funds that you invest will earn dividends and/or interest. If those are automatically reinvested, those, too, will earn dividends and interest,” explained Katelyn Bombardiere, a certified financial planner and financial advisor at Commas. “This process then repeats itself over and over again.”
A lot of people think you need a lot of money or need to spend a lot of time studying finance to invest. You don’t!
If you don’t know where to start, just start doing some research. Reading this article is already a great start! And don’t be afraid to ask for help, Bianculli said.
“Just try it out, even …….