A lot of middle-aged and older people wish they took more financial risks while they were in their 20’s and early 30’s. This is because they believe it is smarter and easier to make bold financial risks at a young age. On the other hand, younger people are waiting to get older before they start making such decisions. So what is the right time to begin? The answer to this question is simple. You should start taking bold financial risks while you’re young. Below are some good reasons why. Here is a video that explains risk and investing.
One of the reasons why you should start taking bold financial risks at a young age is the fact that you don’t have a lot of responsibilities. When you are fresh out of school or living with parents, you don’t have children and you don’t necessarily have any bills to take care of, this is the perfect time to take financial risks. You can afford to take the financial hit if things go wrong, you still have years to save until retirement.
It’s Easier to Fail When You’re Young
The other reason why people should start making bold financial choices early in life is the fact that it is easy to fail when you are still young; easy in the sense that you can take and deal with the failure easier than an older person can. This is mainly because your age permits you to make many mistakes which enable you to learn. When you are older, no one expects you to make such mistakes and you are honestly better off not making mistakes because a lot of people depend on you.
Future Safety Net
The reason why a lot of middle-aged and older people struggle with their finances is because they did not have the foresight to start early. When you continuously take bold informed financial decisions, they end up working out and generating a lot of profits. These profits can be reinvested and saved for the future. This means your retirement is better funded and if you have children who want to attend university you can afford to send them.
In conclusion, if you are a young person and you are reluctant about taking any financial risks, you needn’t be. Having a bold financial plan doesn’t mean heading to Vegas and betting it all on black, but you can choose riskier stocks and trades. Speak with your financial adviser about the right types of risk that you can take. Your future self who is ready to retire will thank you for it.