Chris Linkas Breaks Down Five Reasons To Save In Your 20s

Chris Linkas 1Chris Linkas has been the European Head of Credit since November 2012. The group is based in London and has twenty people. He decided to break down why it is to the advantage of the young to invest early.

The first advantage that the youth have to investing is time. Money invested today grows exponentially because of something called compound interest says Chris. The younger you start investing, the better. Warren Buffett started investing at 11 years old, and that was one of his keys to becoming a billionaire.

The second advantage the youth have today in investing is that they can take on more risk. Most people want to retire, and the further you are away from retirement, the more risk you can take on, which means you will get a higher return on investment in the long term.

The third advantage that the youth have by starting to invest early is that they can learn by doing. If you make a mistake as a young investor, you still have time to recover. You also have ore time to learn strategies that will increase your returns.

The fourth advantage that the youth have in investing is technology. This allows the youth to learn fundamental and technical analysis early on, and this will therefore give them an edge that did not exist years ago. Transaction fees are lower than they were decades ago because of technology and competition. All of this favors the investor.

The youth can also invest in themselves through education, which may or may not be through a college degree (http://observer.com/2011/05/the-power-100-2/). There are plenty of free resources online that give young investors the edge in learning about the markets, as well as other skills that will increase there earning power.

The bottom line of what Chris is teaching is that investing works better if you start early. The later you start, the less time you have to take advantage of compound interest.

 

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