1 answer

Should teens invest into the stock market?

Asked Houston, Texas

Maybe that could help pay for college if you have a successful portfolio? #investing #venture-capital #finance #real-estate

1 answer

Anwar’s Answer

Updated Hyderabad, Telangana, India

The answer to when you should start investing in stocks is exceedingly simple -- as soon as reasonably possible, assuming:

1. All of your high-interest (read: credit card) debt has been paid off.

2. You've built an emergency fund to provide a minimum of three months' basic income should you lose your job.

Pass those two tests, and you should start investing immediately -- whether you are 12, 32, or 52 years old. There's almost no way your future self will regret making the decision.

If you are a teenager you can start small with the monthly savings or pocket money you get. 

Lessons from a master

The authoritative biography on Warren Buffett is mammoth -- over 800 pages. But as far as this article is concerned, the most important part of the book is on its cover: The title is The Snowball.

There is no better way to visualize how Buffett built his fortune -- and why it's so crucial for you to start investing as soon as possible.

Anyone who has stepped outside with their child in January knows how annoying and clumsy the beginning of a snowball can be. At the start, your back hurts from bending over and you wonder if you're making any progress.

Give the effort a little time, however, and you're suddenly rolling 100 pounds of frozen water around your yard. Not only that -- and this is the important part -- but with each revolution, your snowball is adding exponentially more weight.

Arrange your task so you can roll the snowball down a hill, and you'll have a veritable boulder on your hands in a matter of minutes.

So in short the sooner you start the better - Happy investing :)

Anwar recommends the following next steps:

  • Additional links : https://www.betterment.com/resources/strategy-investing-in-your-20s/