Building Wealth at a Young Age.

 Building Wealth at a Young Age

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Although it is much easier to grow your wealth when you are receiving a steady income, a good start can be made at a very young age. Investments tend to be a scary topic especially to the financially uneducated. Following simple rules however can secure wealth for the future and give you peace of mind while doing so.

Find a broker you can trust. This person will be handling you money and potentially a lot of it.

Finding someone who you can trust and who has a good reputation will greatly decrease your stress level as well as increase your chances of growing your wealth in a safe, efficient way. Researching brokers and meeting with them before you invest will give you a good deal of knowledge as well as options about who to go through when it comes time to invest.

Start investing young. Even small amounts of money invested at a young age can expand surprisingly quick if placed in a well managed mutual fund. For example, Joe can start saving and investing at age 19. He can invest $2000 every year until he turns 26 and not save another penny for the rest of his life. John can start investing at age 26 and invests $2000 every year until he is 65. In a standard mutual fund that earns an average of %12, Joe will have $2,288,996 at age 65 while John will only have $1,532,166. While both amounts are a very large amount of money, Joe only invested a total of $16,000 while John invested over $75,000! When it comes to investing, timing is everything. Even without a large amount of money, saving young will pay off greatly in the long run.

Be Hands on with your money. Although it doesn't usually pay to constantly pull out and go back into different investments, keeping in contact with your broker can be very helpful. Monitor your investments and keep track of what you did right as well as what you did wrong. This will always help in future investments and business deals down the road.

By: Alex Comstock

                           Ramsey, Dave. "Stratogy for Success." Ramsey Solutions (n.d.): n. pag. RamseySolutions.net. Web. 20 Feb. 17.