Why Gen Z should start planning investment now
As the Generation Z (or Gen Z) are now approaching adulthood and becoming an asset to the country’s labor force, it’s the time for this young generation to start thinking about investment. Known for their frugality and “woke minds” for the future, the Gen Z are actually more informed about investing than the Millennials.
Investing can seem complicated but it isn’t really scary as you think. Personal finance is personal. Your investment entirely depends on your financial goals. But regardless of what that is, the endpoint will always bring considerable benefits. Here are six reasons why you should consider investing now.
1. More recovery time
The beauty of investing now is that you will have more time to make up for any future losses. Risk is absolutely fundamental to investing. This puts you ahead of other investors who start investing at a later stage in life which will get less time to recover his losses.
2. Develop a good saving and spending habit
Investing is a way of preparing for the future, but you must also not forget to protect your present. To be a good investor is to learn how to save money regularly. While most members of Gen Z are still only teenagers, it’s not too early for this generation to start investing for the future. If you develop a habit of spending less and saving more, you’re already financially ahead from someone who never started. Just remember that consistency is key.
3. More time for learning
Once you are able to establish a good financial habit, and have acquired a protection fund, the next step is to invest in knowledge. In this Digital Age, educating yourself on the best instruments is no longer such a daunting task. Spare a time to learn about the different investments out there such as stock market, bonds, real estate and so much more. Having time on your side allows you to choose better investment options that reap great value.
4. Prepare to be inflation-proof
We know that the prices of goods will always rise through the years, and it’s a pretty normal thing. And the best way to prepare for this eventuality is to invest regularly and “now” is the time. If you invest now, you can afford things which others might not in a decade or so. This also explains why investing is better than just saving.
5. Less dependent on the Government (or anyone)
Remember that it’s not the government’s job to cater to our every need, or bail us out of poverty. Most especially during this coronavirus pandemic that crashed our economy, we can anticipate more government intervention and debt in which the future generations will pay. That’s why you need to take responsibility on your own and not be dependent on others.
6. Have peace of mind
There will be times in life when you will need resources to meet unexpected problems like losing a job or an economic recession. And during those unavoidable times, the investment you made now will definitely save you without needing much help from others.
Bottom Line:
Now is the time to start investing. The advantages of planning your investment now will certainly give you more time to recover, develop a good financial habit, have the ability to weather increased risk and opportunities to increase your cash flow, and most especially achieve financial peace of mind. The Gen Z may be in the best position now, but fear the unknown, especially when money is involved. Waiting for the “best time” is a myth, because the longer you wait, the less financial gain you have.
You’re never too young (or old) to invest. Start now when you can. Because sometimes “later” becomes “never”.
