A young person has the biggest resource on his or her side. That is time!
If you see the pic below, it is clear that Warren Buffet became super duper wealthy because had a long run of 54 years in investing. Yes, he started in his adolescence.
So how should you invest in as a teen? Here are three tips:
- Invest as much as you can in equity and equity mutual funds. If you cannot spot stocks, then mutual funds is a great way to start off.
- Keep some cash aside to invest more when markets correct or fall. To find how much take a risk profile assessment.
- Learn from your mistakes. Again time is on your side. Keep learning and over 4–5 years you will be ready to pounce on opportunities when they appear.
Invest heavily in learning new skills and career so that you can generate cash to invest. Do not assume that investing alone will enable you to invest more. It takes atleast a decade to get to a stage where the passive income you generate can support your lifestyle. When that stage comes, you can get into full time investing!
