Young starters

If you are young, then you have a big advantage: more time to invest and you can do so with even a modest amount, once and monthly for example.

The power of starting saving and investing early: Your guide to financial freedom

Are you between the ages of 20 and 35 and ready to take control of your financial future? Then this article is for you! We discuss the benefits of starting saving and investing early, the power of compound interest, risk management, and how to develop healthy financial habits.

Why start early?

It's no secret that money takes time to grow. But did you know that the time frame in which you invest is at least as important as the amount you invest? This is because of the magic of compound interest, or interest-on-interest.

Imagine you save €10,000 at age 25 and invest this amount with a return of 7% per year. If you leave this for 40 years, you will have more than €76,000 at the end of that period. But if you don't start saving until you are 35, you will have only €34,000 at the end of that same period.

This is a huge difference! By starting 10 years earlier, you have more than doubled your wealth. This is the power of compound interest.

The benefits of investing

In addition to saving, investing is another way to grow your wealth. Investing involves more risk than saving, but it can also produce higher returns. Over the long term, stock markets have historically produced returns of about 10% per year. This is significantly higher than savings rates, which are currently around 0%.

Risk management

Investing is not without risk. The value of your investments can fall, causing you to lose money. Therefore, it is important to manage your risk. One way to do this is to diversify. This means you invest in different types of investments, such as stocks, bonds and real estate. By diversifying, you spread your risks and reduce the chances of losing a lot of money.

Financial habits

The key to successful saving and investing is developing good financial habits. This includes:

Regular savings: Invest a fixed amount of your income each month. This can be as little as €50 per month.
Keep track of expenses: Know where your money is going. This way you can save unnecessary expenses.
Learn about investing: There are many online and offline resources available to learn about investing.

Get started today!

It's never too early to start saving and investing. The earlier you start, the more you can benefit from the power of compound interest.

Get started on your financial future today!