1️⃣ Time horizon
Starting early allows us to benefit from the power of compounding over a longer period. The longer our money is invested, the more time it has to grow exponentially.
2️⃣ Risk tolerance
In our 20s, we typically have a longer time horizon to recover from market downturns. This enables us to take on more risk in our investments, potentially leading to higher returns over time.
3️⃣ Financial habits
Developing good financial habits early such as budgeting, saving, and investing, sets a strong foundation for long-term wealth creation. These habits can compound over time and lead to greater financial success.
4️⃣ Learning opportunities
Starting early provides ample time to learn about different investment options, strategies, and financial principles. Making mistakes and learning from them early in our financial journey can lead to better decision-making later on.
5️⃣ Career growth potential
Our 20s are often a time of career growth and advancement. As our income increases, we can allocate more funds towards investments, accelerating your wealth accumulation.
6️⃣ Flexibility
With fewer financial responsibilities and obligations in our 20s compared to later stages of life, we have more flexibility to take risks, explore different investment opportunities, and recover from setbacks.
