There are many different schools of thought on when the best time to invest is. These schools of thought usually change with age as well. The long and the short of “When is the best time for me to start investing?,” however, is now. With all the different opinions around, that isn’t always the most popular response, though. One of the goals of Trader on the Street is to educate people on how to invest right now. let’s take a look at a few of the opinions about when is the best time to invest, and how “now” ties into the three main mindsets.
The first mindset that occurs is, “The best time to invest is later.” This is most common in the younger generations. Most teenagers through young adults find their financial situation less than ideal. A common complaint is barely having enough to live off of as it is, so why should I take money out of my already small paycheck to invest? That’s less for me to live on and will make it almost impossible to progress through life without that money. If this is the case, what is the end goal? When will you start investing? The most common response I'm willing to wager will be received is “When I’m out of school.” and/or “When I have a better paying job.” In this instance, perfect. There's a future trigger to investing. The issue is that is usually later than most people think. While school may be finished in 6 years and that's when you have a better-paying job, you have to start paying back your student loans and putting a payment down for a home, and maybe prepping for a family. Then, you’re in the same boat from before you were graduated. “I’ll start later.”
If you start investing now, even just a little portion of your check, that few dollars a check can grow with each deposit and grow with your investing. Now, you can pay cash for school and not have to pay additional interest rates on loans. If you invested enough, you potentially have enough for a down payment on a home so you’ll be paying less interest for the home there. Then, once you start that job, you’ll be seeing more of your check which you can then invest now all because you did when you were younger and possibly struggling.
The second mindset is, “The best time to invest was 40 years ago!” Other than the thought that “If I would have put just $50 into Google when it started, I could own my own island by now” idea, a lot of people do not feel ready for retirement. Once you start to approach retirement age, you'll more than likely wonder if you have enough savings and funds to retire and be sustainable until your passing. When you’re looking back and thinking forward if the savings and 401K you have are going to last, you’ll probably be thinking, had I only started saving and investing funds when I got my first job at 16. You don’t need to think that you’d be a millionaire had you bought some amazon stock, but just knowing that had you set a little aside and invested you’d be a lot better off now.
This brings us to the “Now” mindset. Most of the “I should start investing now” individuals are not retirement age yet, but they're also getting established in a career and starting if not already started a retirement plan. Short-term investing can create some rapid revenue, though that can help get out of debt before retirement. This investing is great for paying off credit cards, vehicle loans, and home loans. Longer-term investing that you don’t have to manage like the short-term is great for having extra money once you do retire so you can travel or go through with whatever goals you may have. This mindset, though, often comes to late to maximize benefits. The previous two paragraphs have both detailed different reasons why the “now” thought process is important as early as possible. If you’re struggling now, whether you're younger or older, investing now can help pull you out of a whole and set you up in the future. This is what Apiary Fund and other similar companies want: to teach and start individuals investing now so it can help you tremendously in the future.