Maybe you tell yourself that you should activate your savings when you have more money or that you should review this "someday in the future." Perhaps you are worried that the market is a bit shaky now, so you choose to wait and wait for the "right opportunity." Starting to save is always a good idea, and you do not have to wait or be an expert in the field to get started.
How it is - not doing anything costs you money and more than you can believe. A large part of the population has experienced a financial loss by postponing crucial decisions. By waiting to invest, you can miss stock market rises and returns. The most important decision is not how much to start with but to start activating your savings.
Ideally, we would start saving at birth. But with our hands on our hearts, we usually do not start with this until we are in our 30s. But you can become an investor regardless of age, but for every second you wait to act, you give up your greatest asset and resource, namely time.
By investing early rather than larger amounts as you get older, you are giving your money a chance to work smarter instead of harder.
Time is not only your best friend when you invest. It is also the factor that allows you to make money on your existing investments. It's called the interest-on-interest effect. It is about getting a return and making money on already invested capital. But how does it work?
Imagine that you invest 10,000 this year, which you have a return of 10%. It means that you make a profit of 1,000 on your start-up capital, and as a result, your investment is now worth 11,000.
What if you did not invest any capital next year? You can still get a return on your investment. But how is that possible?
Say you get the same return of 10% on your 11,000. Instead of the 1,000 in return you received last year. You now receive 1,100 because you have 10% more start-up capital than you had last year. It means that you now have 12,100 in total.
There is something powerful about the idea of creating opportunities for your savings and deciding what you want to do with your capital instead of spending the money, or worse, not knowing where the money goes every month. Instead, by starting with monthly savings, you give your money an assignment - to start working for you and build your savings over time.
With that said, starting to save is always about getting rich. It's about building a financial safety net for yourself. At some point in your life, you will have to stop working. When that day comes, would you not want a way of earning a living without being dependent on some other factor?
Or maybe an even better example: what if you could stop working when you want to do it and not when you have to do it? Starting to save and invest can help you create financial freedom, and there is no better time to start than now.
Many people avoid saving and investing because they are afraid of making mistakes by choosing the wrong stocks or mutual funds. Maybe you think it's not easy or that you have to be an expert to get started. You do not have to be an expert, and you do not have to wait for the right opportunity. It is the right time every day, and sometimes you can buy when it is expensive and sometimes when it is cheaper. But it's okay because, through monthly savings, you spread your buying opportunities and thus your risks. Combined with the interest-on-interest effect, it makes your money work for you.
At several banks, you can tailor your savings to suit you. They can often offer you a wide range of savings and have lots of forms of savings for all different levels. You can save with robot advisors at a bank, meet advisors online, in offices, build your portfolio, and much more. With our qualified advisers, banks help you take your savings to the next level and make sure you manage it.
Start saving for yourself for a month or set up saving for your children.
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