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- Young people, why you should start investing now
Young people, why you should start investing now
dateDec 12, 2022
updateApr 06, 2022
authorFlyseed

Image Source:Shutterstock
If you use the wrong method to save money, not only will you not be able to save money, but the money you save will become less and less. Putting money in
Ayu is 32 years old this year. He has worked in a foreign packaging factory for 8 years. He earns 50,000 yuan a month (working night shifts). His wife earns 30,000 yuan a month. With their year-end bonuses, the family's annual income is about 1.1 million yuan. He has a 3-year-old child. He currently rents a house with no mortgage, but has a 600,000 yuan car loan. After deducting rent, car loan, nanny fees, filial piety fees, living expenses... every month, there is not much left. Looking at the rising housing prices, the idea of buying a house to settle down seems to be an unattainable dream. Maybe you don't have a rich dad, so you need to invest in financial management as soon as possible. The following are the reasons why you must start investing right away:
Inflation is eating away at your income
Some people think that since their salary is low and they can’t save any money, they might as well enjoy life and pursue small happiness. They are unwilling to sacrifice the quality of life for the sake of saving money. But do you feel that? All the necessities of life, chicken fillets, coffee, bubble tea, toilet paper..., everything that can be seen and used has quietly increased in price. Prices will not stop inflating just because you decide to become a "lay-flat" person. The ever-increasing prices are eating away at the quality of life that you thought would not change. You must start investing in financial management to resist inflation.
Avoid becoming a dirty old man
As the population continues to age, young people are reluctant to have children, the elderly are living longer and longer, and social welfare conditions are getting worse, don't think that the dilemma of living on the streets and receiving social assistance will not happen to you. The National Development Council estimates that by 2040, on average, every two young and middle-aged people will have to support one elderly person or child. In the past, a father could support a family by working alone. Now, let alone supporting a family, he can hardly even support himself. When you get old and gradually lose your ability to work, an unexpected change will turn you into a "low-class old man." Investing can allow you to retain assets, stay away from low-class old people, and not become a burden on society."Shirakawa elderly" is a new term that has appeared in Japan. "Shirakawa elderly" refers to elderly people living a lower-class life.
There are people who want to buy a house
If you have not been scared to death by the housing prices and have not given up the idea of buying a house, then you should start investing immediately, set up a simple and achievable investment plan, and execute the investment in a long-term and disciplined manner. For those who are willing to invest, buying a house is not an unattainable dream, it just takes time to accumulate. However, for those who love to complain, blame everything, and talk but do not practice, it is indeed a fantasy. Buffett’s famous saying: "Investing is like rolling a snowball. Find a path with wet snow and a long slope, and the snowball will roll bigger and bigger." The greatest asset of young people is time. The earlier you start, the more chances you have to make a profit.Buffett famously said: "Investing is like rolling a snowball. If you find a path with wet snow and a long slope, the snowball will roll bigger and bigger."
People who want to achieve financial freedom
What is financial freedom? It is the FIRE (Financial Independence Retire Early) that has become popular in recent years. Financial freedom means "having enough money to use without working". Early retirement does not mean not working, but not having to work for money and being able to do "what you want to do". If the salaried class wants to achieve financial freedom, you must invest in financial management. It does not require you to start a business and become Terry Gou or Morris Chang, but it requires you to understand financial knowledge, accumulate assets through investment knowledge, and achieve your financial freedom (FIRE) through passive income.FIRE (Financial Independence Retire Early) means "Financial Independence, Retire Early"
The risk is highest when you do nothing
Our parents often tell us that venture capital investment is very dangerous and there is a risk of losing everything. They use their own failed experiences to advise you not to invest in a startup easily and just work hard. As a result, you only dare to put your money in bank deposits and buy savings insurance. At the age when you should be investing in financial management, you do nothing or make wrong decisions. At first glance, there seems to be no loss, but in fact, doing nothing is the highest risk, because your 1 million (no more investment) will be 14.78 million in 35 years (calculated at 8% compound interest). If you do nothing, the 1 million will still be 1 million, and the purchasing power of 1 million may only be 800,000 due to price inflation.It is not difficult to make an 8% long-term investment. Taking Yuanta ETF 0050 as an example, the annualized return rate over 15 years is about 8% - 11%.Note: Past performance is not indicative of future performance.
If you save 7,148 yuan per month, you can still reach 14.8 million yuan in 35 years.

Image: msn Finance
in conclusion
In response to the world's ruthless treatment, you have no choice but to use "lying down" as a silent protest, but can lying down really change anything? Nothing can be changed. If you are tired, just lie down and take a rest. But please do not lie down all the time, because doing nothing is the riskiest time. If you hope to be happier in the future, have more money, be able to buy a house, have money to do what you want, and do not want to become a burden on society and live the life of a vulgar old man, then from now on, please make some changes and start trying to save money for investment, even a few thousand dollars a month is fine. Please let time be your greatest weapon for accumulating assets. This is not a simple thing, but it is never too late to start.This article states:
The author has no vested interest in any transaction with Yuanta Securities. The content of this article is only the author’s personal opinion. Please think independently and make careful assessments before investing, and be solely responsible for any subsequent gains or losses of any investment.
(The copyright of this article belongs to Darrick. Reprinting of pictures and texts without authorization is prohibited)