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Hi Taylor:
I'm in high school and have been taking a class on finances. I'm getting
really into the concept of investing and wonder when is the right
time to start. Is there a certain age when I should start, or just
whenever I have a good amount of knowledge? I want to get a part-time
job soon so I'll have money to invest. - Carlos
Hi Carlos: This is a really good question. Knowledge is the most
important factor, but age has a little bit to do with it, as well.
The common pitch is, "It's never too early to start investing in your
future," and while there's a lot of truth to that, the issue isn't
so cut and dry. Let's break it down a little further. |
1. Starting
early. The earlier you invest, the longer your money has to
grow. This is categorically true, but it doesn't account for any
of the variables. It makes sense to wait until you have more capital
and can make a more substantial investment. Since you are currently
working and aren't looking to work full time, you'll likely be
investing most of your monthly earnings. I don't know enough about
your financial situation, but make sure you're saving and covering
important expenses before getting too excited about investing.
2. Coming of age. Is there a perfect age to start investing?
Not really. The age depends on whether you're working, if you've
gone or are planning to go to college, whether you have an emergency
fund, etc. If you stay as interested in the market as you are
now, you'll keep learning, and eventually, certain investments
will start to make sense. At that point, if you have the funds,
you'll be exactly the right age for investing.
3. The right time for you. As you can see, my answer is a
little wishy-washy because we need to get a clearer idea of your
future plans and goals. I think you should start investing as
soon as possible, but that might mean you should wait a few years
until you have a little more money and a job that seems reliable.
When you start, it should feel like you're making a smart choice
with your money. If it feels like you're gambling, it's not the
right time.
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Focus on getting
a job and saving some cash. After you've done that, you can start
looking seriously into investing that money. As long as you keep learning,
I'm sure you'll do fine. Good luck!
© Taylor Kovar
June 4, 2022
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| Legal Disclaimer:
Information presented is for educational purposes only and is not
an offer or solicitation for the sale or purchase of any specific
securities, investments, or investment strategies. Investments involve
risk and, unless otherwise stated, are not guaranteed. Be sure to
first consult with a qualified financial adviser and/or tax professional
before implementing any strategy discussed herein. To submit a question
to be answered in this column, please send it via email to Question@GoFarWithKovar.com,
or via USPS to Taylor Kovar, 415 S 1st St, Suite 300, Lufkin, TX 75901.
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