Start Your Investment As Early As Possible

Many financial advisor has given young people right advices like start their investment in 20s rather than later. To reach your financial goal for life time, young people should focus on establishing a good money habit, exercise to budget and control needless spending, more importantly save and invest to avoid debt situation in the future. Start investing early will get you the benefit of overcoming the learning curve of investing, the road won’t look bumpy once you master the game.

A good example of good financial planning advice given is that of a 25-year old who starts investing $2,000 a year and does this for 8 years. After age 33, he never invests a single additional dollar. The young man eventually has a bigger investment portfolio than a 35-year old who launches his investment and keep doing that for 32 years. Four times of money is invested by the 35-year old but ended up with less money than 25 years old.
Whenever you sit down to take any financial planning advice, you must have identified your short, medium and long-term goals. Short term goals include such things as a wedding, buying furniture, your honeymoon and buying a new car. Next, is to consider your medium-term goals.  You could take a mortgage for a bigger and better house, having kids and taking care of their education. Here is financial planning come to play, you need define how much saving goes towards meeting your goals. When making a budget, set aside some time for each of these and do not try to sacrifice one for the other.
Once you have better financial education like the one provided by Robert Kiyosaki and Rich Dad Poor Dad Education, you will know it is not wise to invest in Certificates of Deposit or Money Market Funds for short-term goals and investing in the stock market for long-term goals. Throughout, it has been shown that the stock market has out-performed just about any other type of investment. Chicken Little has no way to survive the pressure of gain-lose mentality of stock market. Without strong tolerate for high risks, the stock market won’t be suitable for long term goals as the market really goes up and down.
In my site about Rich Dad Poor Dad Review, I talked about Robert thinks 401(k) plan is not an investment plan rather than a saving plan. A financial advice will also offer another financial planning advice which is finding out if your employer has a tax-deferred retirement plan or a 401(k) plan. It is no-brainer for people to join the plan. Unless you take the money of our plan for your retirement the profit made on the investment inside of 401(k) plan will not be taxed. In addition, and probably even better, many of the employers will match a part or all of your contributions resulting in hug gains. You should go out and seek more information on the subject for free on the internet. It takes time to filter out many many pages of information on the subject to find solid one to digest.