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“By failing to prepare, you are preparing to fail.” – Benjamin Franklin

Investing and saving at a young age isn’t always easy. In our consumer society, when we are young our priorities often lean towards buying the latest cars and gadgets, often leaving little money to invest. Some mistakenly believe that small investments or savings now will have little impact on our future. But investing and saving, as with anything in life, benefits greatly from an early start.

To get ahead in life, it is always better to start sooner rather than later, and here are just a few of the many reasons why.

Life Expectancy Increases Over Time

Life expectancy has increased dramatically. Fact is, the average life expectancy of a person born after the year 2000 is up to 30 years longer than those born last century. According to World Health Organisation, Australian men have the third highest life expectancy in the world, and women the sixth. You’ll need enough money invested for a retirement that may last 25 years or more.

Inflation

The fact is, today’s dollar will not buy you the same amount of goods and services in the future. Inflation continually eats away at your savings. Learn how to save and invest for long term goals and minimise the impact inflation will have on your plans for retirement.

The Power of Compounding

A millionaire’s best friend. Compounding is defined in Investopedia as: “the ability of an asset to generate earnings, which are then reinvested in order to generate their own earnings.” In simple terms, it means earning money from your money! Starting early is the key to taking advantage of compounding.

Time

Time is an investor’s greatest ally, as it allows to take greater risks, returns and regular reviews early. Time will also help you avoid having to take unnecessary risks closer to or even during retirement. This will also result in a better quality life, as there will be less worries and a greater nest egg to work with.

Be a step ahead of everyone else

Our blog’s title is an idiom worth adhering to. The earlier you begin saving and investing, the better your personal financial situation will be down the line. By starting young, you’re one step ahead of the game.

It’s never too early to start (the younger the better). The first step is always the hardest. To get something done is to begin, so just do it!

Stop thinking that you are too young to save and invest. Investing while you are young is one of the best decisions you can ever make. We’re here to help you make wise financial decisions and achieve financial peace of mind. Contact us and we’ll show you how you can benefit from a head start in life.