What is Investment?
Investment is committing money or capital to an enterprise to obtain an additional income or profit. Many people choose to invest in securing their financial future, but several other benefits come with investing early. One major benefit of investing early is taking advantage of compounded interest rates. When you invest at a younger age, you allow your money time to grow and mature, meaning it will earn more than if you were to wait until later in life when your funds are likely needed for something else. The earlier you start investing your hard-earned money into something like stocks and bonds, the more likely it will be able to grow over time, earning even more for you down the line. Another significant benefit of investing early is avoiding too much risk too soon. By starting slow and steady, you can eventually work your way up from low-risk investments like savings accounts and certificates of deposit (CDs) to higher-risk options such as stocks, mutual funds, options contracts, ETFs, etc.
