Author: The Brand Office

Time is Money: Seize the Moment for Financial Growth

3 May 2024
The Brand Office
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Categories: Uncategorized

When it comes to investing, the tick of the clock is as important as the tick of the market. Whether you’re just starting your career or eyeing retirement, the role of time in investing is second to none. At Objective Measure, our mission is to unravel the mysteries of investing and empower individuals to get involved in their financial futures. Join us as we explore how time is your greatest asset and why it’s never too early—or too late—to start investing.

Why is Time So Important?

Time, often underestimated and overlooked, holds the key to unlocking the full potential of your investments. It’s the secret ingredient that fuels compound interest and amplifies your wealth with each passing year. Time is also the resource we squander the most, succumbing to feelings of embarrassment or procrastination when it comes to investing.

There’s a famous quote that applies here: “The best time to start investing was 20 years ago; the second best time is today.” This simple yet profound statement encapsulates the essence of time as a factor in investing. Whether you’re a recent college graduate or approaching retirement, every moment wasted is a missed opportunity for financial growth.

The Beauty of Compound Interest

Compound interest, described by Albert Einstein as the eighth wonder of the world, illustrates the exponential impact of time on your investments. When you reinvest your earnings, you magnify the effect of interest and allow your wealth to grow exponentially over time. The longer your money is invested, the more that growth compounds, making early investing the cornerstone of long-term financial success.

The Wisdom of Life Experience

Time is the keeper of all your compounding knowledge and experience. The journey of financial literacy begins with the fundamentals and leads to more advanced concepts. For example, the suitability of different investment products for different time horizons. Some assets offer more volatility and growth, while others offer stability and consistency—understanding the difference will enable you to make the most of each. But it’s not just about the returns; it’s about the experience gained along the way.

Time as it Influences Retirement

Even if you’re nearing retirement or already retired, time remains a valuable tool in your investment kit. By staying engaged with your investments and adopting strategies that align with your changing financial priorities, you can continue to grow your wealth while enjoying the fruits of your labor. From assets designed to build income to those that protect your savings, there are plenty of options available to keep you financially secure throughout retirement.

Seize the Moment

Time is not just a fleeting moment—it’s the driving force behind successful investing. And in a world of uncertainty and volatility, investing offers stability, resilience, and empowerment. Whether you’re just starting out or nearing retirement, remember that it’s never too early (or too late) to start investing. So, seize the moment, embrace the power of time, and get started investing today. Your future self will thank you for it.

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The Strategic Approach You Need to Know for Financial Success

3 May 2024
The Brand Office
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Categories: Uncategorized

The journey towards financial success is a long and winding one, filled with distractions and temptations. The best guide for this adventure is a well-drawn map, which accounts for your unique strategy, priorities, and goals. Developing a strategic approach to your financial vision can be overwhelming, but at Objective Measure we know the key: Active Investing. In this guide, we’ll walk you through the essential steps of creating a strategic plan for financial success.

A Foundation of Education: The First Step

All things begin with understanding. Take the time to learn the fundamentals of personal finance, from budgeting to saving, and emergency planning to retirement goals. This knowledge forms the foundation of your financial literacy, providing you with the necessary groundwork to navigate the complexities of investing.

Engaging with Your Investments

It can be easy to start with a “set and forget it” mindset, but passive participation will leave you in a reactive posture, missing opportunities and getting emotionally swept up in the market. Actively engaging with your investments gives you more information, control, and confidence. Start by understanding your investments: know what you own, ask the right questions, and stay informed about your assets.

Set Clear Goals and Milestones

A key component of strategic planning is setting clear, achievable goals and milestones. Whether you’re saving money for a new home, your children’s education, or your future retirement, specific targets will help you stay focused and motivated. Break down your long-term goals into smaller, manageable milestones, and don’t forget to track (and celebrate!) your progress along the way.

Understand Your Risk Tolerance

Every investor is different, and each carries a variable tolerance for risk. Before making investment decisions, take the time to assess your risk tolerance and understand how much volatility you can comfortably manage. Risk tolerance accounts for factors like your financial situation, personality and experience, liquidity needs, and investing goals and timelines.

Learn and Practice Decision-Making

Investing is not just about returns; it’s about developing an intentional strategy that accounts for your individual goals and circumstances. Take the time to research different investment options, understand their potential risks and rewards, and practice making investment decisions that align with your long-term objectives. Remember, investing is a journey, and mistakes are inevitable; treat each mistake as a learning opportunity and use it to refine your investment strategy.

Regularly Review and Adjust Your Plan

The financial landscape is constantly evolving, and your investment strategy should adapt to fit these changes. Regularly review your investment portfolio, monitor its performance, and adjust as needed. Whether it’s rebalancing your portfolio or exploring new investment opportunities, staying proactive and adaptable is key to long-term financial success.

Embrace Patience and Persistence

Rome wasn’t built in a day, and neither is wealth. Practice patience and discipline as you work towards your goals, knowing that success takes time and dedication. Stay focused on your long-term objectives, and don’t let short-term market fluctuations distract you or derail your progress.

An enriched and abundant financial future requires a strategic approach, active participation, and an adaptive plan. By learning the fundamentals and creating a personalized strategy, you can navigate the complexities of investing without ever losing track of your goal. Remember, the journey to financial success is unique for each individual, but with practice, discipline, and patience, you can move with confidence toward financial freedom and success.

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Building a Better Safety Net: From Emergency Funds to the Gift of Wealth

5 April 2024
The Brand Office
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Categories: Financial Literacy, Financial Management, Investing

At Objective Measure, we believe in empowering individuals to take control of their financial future. Today, we’re diving into the crucial steps of establishing an emergency fund and stepping into the world of investing. These are not just tasks to check off your financial to-do list; they’re essential components of a robust financial safety net that will enable you to weather the storms of life.

Emergency Funds: Invest in Your Peace of Mind

An emergency fund is a short-term investment tool, designed to save you from moments of financial stress. It’s your backup plan and your first step toward peace of mind. In order to endure financial ups and downs without derailing your long-term goals, an emergency fund cushions you from unexpected hardships. The more you have saved, the more flexibility and relief you experience when financial difficulties hit.

If you’re just beginning your saving journey, aim to set aside $1,000 for emergencies. It’s a modest start, but a crucial step in the right direction. Once you’ve hit that mark, expand your emergency savings to cover expenses or income for a set period of time (3 months, 6 months, etc.). This cushion will provide breathing room in the event of a job loss, medical bills, or other financial emergencies, and will stop the financial impact from boiling over.

Investing: Planting Seeds for Future Growth

After securing your emergency fund, it’s time to turn your attention to investing.Before diving in headfirst though, take a moment to reflect on your goals: what are your plans for the next five to 10 years? Be sure to include any major financial goals such as buying a home, getting married, starting a family, or going back to school. This exercise will help you determine your short-term priorities and cash needs, as well as your risk tolerance and long-term timeline.

Investing isn’t a one-size-fits-all endeavor; it’s about developing a strategy that aligns with your unique circumstances and aspirations. While your emergency fund provides short-term relief and security, your investments should aim to leverage time and compound interest, building wealth over the long haul and serving as a safety net for the future.

Laying the Foundation: Education and Engagement

Education serves as the groundwork for your financial well-being and will unlock the tools for successful saving and investing. Just as you wouldn’t build a house without a solid foundation, you shouldn’t dive into investing without understanding the basics. Take the time to educate yourself on investing strategies, financial products, the market, and risk management. With these pieces firmly understood, you will be able to build a path toward your unique goals.

Active participation will move you forward from education into engagement: the key to unlocking your full potential. To make the most of your investments, it’s important to know what you own, what it costs you, and how it’s affected by changes in the market. Research, regular reviews of your portfolio, and asking the right questions will keep you tuned into what’s happening with your investments. This type of active engagement empowers you to make decisions with confidence.

Realizing Your Financial Dreams

The journey to financial independence is a marathon, not a sprint. Along the way, you’ll encounter challenges and moments of doubt. Be patient with the learning curve, give yourself grace, and embrace the journey. With the right knowledge and approach, you will be equipped to navigate the journey with confidence. Investing isn’t just about chasing returns; it’s about building your future of freedom, security, and abundance.

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Navigating Market Volatility: How Active Investing Provides Stability

5 April 2024
The Brand Office
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Categories: Financial Literacy, Investing

Welcome to the dynamic world of investing, where the markets swing like a pendulum and financial landscapes change in the blink of an eye. Amidst this ever-shifting terrain, finding mental and emotional stability can seem nearly impossible. With active investing, though, experience leads to confidence, which grows into resilience, leaving you cool and calm in the face of market volatility.

At Objective Measure, we believe in equipping individuals with the knowledge and tools they need to actively participate in their financial journeys. Through active investing, you can not only achieve stability but also empower yourself to navigate the complexities of financial markets with intention and clarity.

The Foundation: Financial Literacy

Like building a house, investing starts with a solid foundation – one of financial literacy. Before delving into the intricacies of investing, it’s essential to grasp the basics of personal finance. From budgeting to saving, emergency planning to retirement goals, financial literacy lays the groundwork for an active journey through future planning and investing.

Investing introduces a new realm of possibilities and challenges; adding to the balancing act is the evolving landscape, with its new products and trends emerging every day. It’s like learning a new language, with its own vocabulary and nuances. Our Investment Essentials course serves as your guide, bridging the gap between personal finance and investing, and instilling the confidence needed to embark on your investment journey.

Active Participation: Engaging with Your Investments

Passive participation can be an enticing option, but it usually leads to unpreparedness and missed opportunities. Active investing, on the other hand, engages you in the process, giving you more understanding and awareness so you can make thoughtful and informed decisions.

Being actively involved in your investments gives you control over your vision for the future, providing meaningful context on your unique circumstances, priorities, and risk tolerance. Being engaged in this way means knowing what you own (and how much it’s costing you,) asking the right questions, and staying informed about market changes. While it doesn’t require constant buying or selling, active participation equips you to understand all the pieces and make strategic adjustments when needed.

The Benefits of Experience: Confidence and Resilience

As you learn and explore the world of investing, you gain invaluable experience and inevitably find yourself feeling more confident in your financial plans and decision-making. Through education and engagement, you’ll develop a deeper understanding of financial principles and market dynamics. This knowledge not only reduces anxiety but also fosters a sense of control over your financial future.

Beyond confidence, active investing builds resilience. The journey will certainly have its ups and downs, but with experience comes the ability to weather the storms. Mistakes become learning opportunities, and setbacks fuel your determination to succeed. Investing is indeed a marathon, not a sprint – and with resilience comes the capacity to stay the course and achieve your long-term goals.

Embracing Active Investing

In a world of market volatility and uncertainty, active investing offers stability and empowerment. By educating yourself, engaging with your investments, and embracing the learning experience, you can navigate the ever-changing financial landscape with confidence and resilience. Remember, investing is not just about earning – it’s about building a financial future of freedom and generosity. So, take charge of your financial journey, and with active investing as your guide, you are sure to reach your destination.

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The Trap of Passive Participation: Active Investing Provides Better Results

11 March 2024
The Brand Office
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Categories: Financial Inspiration, Investing

In the realm of finance, the term “passive investing” suggests the idea of setting and forgetting your investments, relinquishing control to the whims of the market. However, this is a dangerous approach that exposes you to risks you can’t necessarily recognize. Passive investing, characterized by a lack of engagement and involvement, sets investors up for failure with less information, less confidence, and less experience than engaged investors. In contrast, active participation in your investments offers a pathway to informed decision-making, resilience, and ultimately, financial success.

Understanding the Risks of Passive Investing

Passive investing may seem appealing in its simplicity, but it comes with unavoidable pitfalls. Investing is not one-size-fits-all, so an untailored approach means you are investing blindly and without a strategy in place. Without a clear understanding of what you own or the associated costs, you may be paying excessive fees for unsuitable assets. Furthermore, failing to regularly assess your portfolio leaves you vulnerable to market fluctuations and unresponsive to changes in your own needs and circumstances. Ultimately, passive investing can lead to excessive costs, missed opportunities, and subpar returns, while setting you up to be unprepared for future challenges.

The Importance of Active Participation

Active engagement in your investments is essential for limiting these risks and fostering financial resilience. By taking the time to know your investments inside and out, you gain valuable insights into their performance, costs, and alignment with your goals. This knowledge empowers you to ask the right questions, make informed decisions, and adapt your investment strategies as things change. Whether it’s reassessing your risk tolerance, reallocating assets, or exploring new opportunities, active participation allows you to stay agile and responsive in an ever-changing financial landscape.

The Benefits of Being Actively Engaged

The benefits of active engagement in investing extend far beyond mere financial returns. By actively participating in your investments, you gain experience and cultivate confidence in your financial decision-making. You gain a deeper understanding of financial principles, reducing anxiety and fostering a sense of control over your financial future. All of this builds resilience in the face of market volatility and changing circumstances. Moreover, active participation enables you to seize opportunities for growth and pursue your long-term financial goals with clarity and purpose.

While passive investing may offer a semblance of ease and convenience, it’s important to recognize the inherent risks it poses. By embracing active participation in your investments—knowing your investments, regularly assessing your portfolio, asking the right questions, and adapting your strategies—you empower yourself to navigate the complexities of the financial markets with confidence and resilience. Don’t settle for passive indifference; take charge of your financial future today and pave the way to freedom and prosperity.

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Build a Vibrant Financial Future: Why Engaged Investing is Better

7 March 2024
The Brand Office
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Categories: Financial Inspiration, Investing

Investing is daunting to many; it seems shrouded in mystery and uncertainty. Because of this, many individuals avoid investing, allowing fear to hold them back from securing their financial future. The truth is, though, that active engagement in investing can unlock relief, freedom, and empowerment. By embracing knowledge, practice, and personal experience, you can learn to navigate the world of investing with confidence, paving the way to your financial goals.

Financial Goals May Vary

Everyone has different financial objectives but ultimately, most of us want less fear and more freedom. That may look like early retirement, more travel, or paying for your grandchildren’s college education. How you reach these goals will vary just as much and will inevitably involve a wide variety of methods, but investing will be one of the strongest.

How to Start Engaging in Investing

Regardless of where you currently stand, or where you hope to someday be, fully participating in your investments will allow you to control your financial future. This doesn’t require a finance degree, only a willingness to learn. Start wherever you are right now; if you need to learn some Investment Essentials, we can help with that. Once you understand the basics, start investing! Practicing will provide the critical experience needed to develop confidence and resilience.

How to Engage Further with Your Investments

Once you know a bit about investing and have started collecting your own experience, you are ready to go a step further. Research new investment opportunities, understand how the market changes, and learn to recognize what impacts your investments. Maintain a balanced portfolio and regularly review your strategies, tailoring your investments to suit your changing needs and aspirations. By actively participating in your investments to a higher degree, you are empowered to make fully informed decisions and create your own financial future.

The Many Benefits of Engaged Investing

Engaged investing offers benefits that extend beyond financial gains. It instills confidence by equipping you to ask the right questions and make smart choices. Confidence breeds resilience, which enables you to weather market swings and avoid major mistakes. Finally, engaged investing fosters a deeper understanding of financial principles, reducing anxiety and expanding financial freedom. Through strategic and engaged investing, you can secure your future and give generously to those you care about.

Achieving your financial goals requires more than just passive participation; it demands active engagement and informed decision-making. By embracing the principles of engaged investing—learning, practicing, and adapting—you can build toward financial security and freedom. Take charge of your financial future today and watch as your investments pave the way to your dreams.

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The Three E’s Of Investing: Fundamentals for Your Future

21 February 2024
The Brand Office
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Categories: Financial Inspiration, Investing

At Objective Measure, our mission is to teach investment literacy and empower individuals to be active participants in their investments. The goal? For people to feel educated and engaged so that they can excel in life. When you are equipped with knowledge and actively participating in your investments, you are primed to excel in your financial goals. Join us as we review the “Three E’s of Investing” and give you the tools to enrich your life.

Educate

Investing starts with your time, not your money. Knowledge is the foundation of financial literacy and in order to grow and advance through the process, you must be willing to learn. There are many components that make up the basics of personal finance; from budgeting to saving, and emergency planning to vacation planning, it’s important to establish the groundwork of financial knowledge to plan for the future.

Beyond personal finance, there is a deeper level of financial education available: investments. This can be a difficult progression with its new jargon and challenging topics like financial markets, assets, interest, and risk management. Many people feel intimidated trying to bridge the gap between personal finance and investing, but this is where you develop a deeper understanding of financial systems and how you can participate in them. Our Investment Essentials course was designed to introduce you to the basics of investing and give you the confidence needed to advance from apprehensive to engaged with your investments.

Engage

Plenty of people invest their money and leave it untouched for the next 20 to 40 years. However, through active participation in your investments, you can be informed and empowered to reach your goals. This means understanding your investments and asking the right questions every step of the way. Objective Measure aims to fully equip you to set goals, make decisions, and handle the inevitable changes that come throughout the journey. As you gain experience, you can tailor and adjust the rules to best fit your unique goals.

Engagement includes a variety of behaviors which will help you move with confidence. First, you should create a thorough plan, complete with goals, risk mitigation, time, and discipline. It’s important to actively participate in your plan: understanding how the markets are changing and how your investments are affected. Additionally, regular monitoring provides checkpoints for reviewing investment performance and costs.

Lastly, active participation does NOT mean you are always buying, selling or changing your investments – sometimes there is no change needed. But in order to understand when to do or not do, you must be diligently attentive to all of these factors.

Excel

The experience gained through education and engagement will give you the tools you need to excel in life. Investing can deeply enrich your life, but it all starts with a vision. What is the future you want to realize for yourself? By creating, pursuing, and achieving financial milestones, you gain access to the life you always dreamed of: one with countless opportunities for generosity, adventure, and financial freedom.

Another part of excelling is developing an earnest perspective for the process. Remember: investing is a marathon, not a sprint. You will make mistakes; they are impossible to avoid. It’s incredibly important to be patient and give yourself grace. Mistakes are learning opportunities that deepen our understanding. When you chase the vision, instead of the money, you create capacity for these learning experiences and leverage them for growth.

The 3 E’s are three major stages of financial development. Education is a time for curiosity, learning, and building confidence; it’s the necessary groundwork everyone must lay. Engagement is active participation, where experience expands and understanding evolves. And finally excelling is the enriched life you’ve been dreaming of; a season of freedom and abundance. Investing always involves risk, but with the three E’s of investing, you can increase success and achieve your ultimate vision.

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Investing: The One Tactic That Can Make or Break Your Early Retirement

9 February 2024
The Brand Office
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Categories: Financial Management, Investing

While 65 is the standard age for retirement, many people dream of crossing that finish line early. What was traditionally referred to as ‘early retirement’ has morphed into a more robust mission of financial independence, which provides the freedom to choose when and how to retire (or continue working) on your own terms.

Since social programs that support retirement are based on age eligibility, an early start must be self-funded. Retirees cannot receive Medicare until age 65 and they cannot receive full social security benefits until age 66 or 67. So to retire early, you must have enough money saved to pay everyday living expenses, as well as healthcare, taxes, and other expenses. This is where investing can make a huge impact.

Financial Planning for Early Retirement

When working towards early retirement, the financial goal is simple: you want to earn and save as much as you can, as early as you can. This effort is driven by a standard tactic of spending less, and making more. Squeeze your current budget as much as possible; get debt free and get creative on saving when it comes to daily life. Earn extra income through side hustles, odd jobs, and entrepreneurship.

After you’re established in a lifestyle that is aligned with your goal of early retirement, you’re ready to get planning. Use your current monthly budget to start estimating your retirement monthly budget. Make the necessary adjustments to account for expenses that will increase or decrease, as well as new expenses that will start or end, during retirement.

Don’t forget about health insurance! Many people overlook this detail when budgeting for early retirement because health insurance has always been provided through their job. But if you stop working and you’re not yet old enough to receive Medicare, you’ll need to pay out-of-pocket for medical insurance, and it can be a high-impact expense.

Estimating How Much You Need to Save

Once you have your annual expenses budgeted, you’re ready to set a savings goal. The standard rule of thumb is to save 25 times your estimated expenses. That is, of course, an estimate that will serve you for 25 years at a consistent annual rate. Another rule, called the 4% rule, states that you can spend 4% of your invested savings in the first year of your retirement, and then adjust that 4% each year for inflation. This rule is based on data from 30-year retirements.

Needless to say, both of these recommendations will need to be adjusted if you are planning to retire early, because you may need your money to last 40 or 50 years. Once you determine an annual budget for retirement, you’ll be able to use what you know about your budget, time, and investment capacity, to calculate how much you need to save.

Investing for Early Retirement

Investing is the best tool available to grow your savings for early retirement. You are hoping to spend less time “sitting” on savings and more time spending your savings, which means you need long-term, sustained growth from your investments. Because of this, you might be tempted to invest in a more conservative portfolio. But remember that high-risk portfolios typically offer higher growth potential. It’s critical to maintain balance and to remember that the time spent in retirement is still time during which your investments can grow.

Managing Investments During Early Retirement

Ideally, your investments are continuing to grow even as you’re starting to use money to cover your living expenses. This requires a careful management system, for which there are several strategies and recommendations. The main idea is to separate your short-term money from your long-term money, allowing most of your investments to continue growing as you start spending.

It is commonly suggested to create a short-term pool of money and investments that will serve to cover your living expenses during your first two, five, or ten years of early retirement. The swings of the market, while volatile and unpredictable, are natural and tend to balance out in the long term; so, if you can stomach the roller coaster, you can continue to collect returns on the bulk of your savings while it’s invested.

Early retirement doesn’t have to be a distant, ambiguous dream. With meticulous planning, self-discipline, and strategic money management, it can be an attainable goal. The impact of investing is irreplaceable on this journey, as it offers the potential for resilience and sustained growth. Early retirement isn’t simply about escaping the workforce early—it’s about building a future of freedom, fulfillment, and financial well-being. Objective Measure’s Investment Essentials Course teaches the building blocks and critical components of investing, allowing you to start building that future today.

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Why is it Important to Regularly Review Your Investment Portfolio?

26 January 2024
The Brand Office
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Categories: Financial Management, Investing

The investment market is constantly changing, sometimes in large swings. It can be extremely challenging to understand when and how to adjust your investments. By regularly reviewing your portfolio, you accumulate new knowledge about the market, different asset types, and your specific investments.

Identify & Seize Opportunities to Reduce Risk & Improve Performance

If you are an experienced investor or if you work with an advisor, you likely have insight into current market conditions and the implications of various swings. As your experience grows, you will be able to make decisions with increasing confidence, understanding the short-term and long-term effects of different market conditions.

A regular review of your investments provides a consistent opportunity to check-in. Whether you are keeping an eye on shifts, monitoring performance, maintaining balance, or researching new opportunities, a consistent review will help you stay engaged with all the moving pieces.

It also provides the perfect opportunity to investigate new types of assets, and new possibilities in the world of investing. By checking in on your portfolio consistently, you’ll never miss the chance to research and get in on a new opportunity.

Rebalancing and Diversifying Your Portfolio

A regular review of your portfolio also offers the chance to reassess and expand your asset mix. The benefit of rebalancing is twofold: you can reinvest your profits into new assets and protect yourself from excessive risk.

Additionally, your annual review is a great time to invest new money. Whether you’re adding funds to existing assets or purchasing new financial products, your regular check-in is the perfect opportunity to make a contribution.

Adjusting your portfolio takes time and attention, it’s important to perform a thorough analysis and ensure all changes are serving your long-term goals. Also, there can be costs associated with this process, so it’s critical to understand your fee structure and how much changes will cost you in the long run.

Beginners and experienced investors may check their investments at different intervals. Reviewing your portfolio will always uncover new data and context, offering insight and knowledge that will build over time. This process will make you more confident and comfortable with investing, leading to a more empowered and engaged experience.

Stay Connected and On-Track with Long-Term Goals

A regular review of your investment portfolio is also the perfect opening to assess your long-term goals, whether they are changing or staying the same. It is a time to analyze past performance, understand the current market, and adjust your strategy for future returns.

When you are familiar with the swings of the market, you are more comfortable moving through changes. When you are informed about your portfolio, you can take ownership of your asset balance, ongoing contributions, and how performance impacts your financial goals.

Regularly reviewing your portfolio offers you a deeper understanding of the investment experience and empowers you to embrace the journey. Make investment decisions with confidence, trusting that you are on the path towards the future you want. Still not sure how to get more actively engaged in your investments? Our Investment Essentials course will give you the tools and knowledge you need to get started.

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Make the Most of Your Money: Why Young Adults Should Start Investing Right Now

24 January 2024
The Brand Office
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Categories: Financial Literacy, Investing

Many young people see investing as an activity reserved for older, more financially established individuals who are closer to retirement. Even though investing can be intimidating, the fact is that as a young adult, you have a huge advantage: time.

This extra time will serve to strengthen your investments in both the short term and the long term. It allows more space for risk and recovery, and it will inevitably increase the value of compounding interest. In addition, learning to invest now lays the foundation for a lifetime of financial literacy and independence. Investing allows you to take control of your finances and lead a more empowered and enriched life.

Short-Term Benefits of Investing Early

With fewer home and family responsibilities, young people often have more time in their day-to-day lives. This means more freedom to research, understand, and stay engaged with your investments.

Additionally, you are more likely to be open to new trends that could help you take full advantage of new technologies and evolving options in the world of investing. You also have the time and resource to be sure to carefully evaluate emerging investments trends and ensure you aren’t investing in anything you don’t understand. All of this sets you up to be an attentive and engaged participant in your investments.

Shielding investments from inflation is an instantaneous benefit. Each year, prices increase, which means cash loses its value. When your money is invested, there are options to protect it from the effects of inflation, which can allow it to continue growing unstifled.

Long-Term Benefits of Investing Early

The most significant advantage of investing early is time. Long-term investments offer the strongest returns thanks to compounding interest. When investments earn compound interest, they roll the money earned each period into the amount that collects interest moving forward. This has an exponential impact, meaning that the longer it is in effect, the more money is earned. After 5 years, the interest collected may be underwhelming but after 40 years, the money you invested is often quadrupled or more!

Another long-term benefit of investing early is a lower-risk learning period. Investing is a learning curve for everyone, whether you start at 25 or 50. However, when you start young, there’s less pressure to succeed right away. You can make mistakes early, recover, and improve your strategies.

This is a huge advantage because the market is constantly fluctuating, and while timing is impossible to predict, gains and losses tend to balance out over a lifetime. Because of this, long-term investments carry more balance and resilience. As a young investor, you have time to bounce back from these uncontrollable market swings and for the same reason, you can take on more risk early in your investing career.

How to Start Investing Right Now

The most common access point available to young adults is an employer-sponsored 401k or retirement account. You might also have an individual retirement account (or IRA) that is operated independently from your employer. The most important thing for you, as a young person starting to invest, is financial education. Even though time is on your side, it’s still important to be intentional. Objective Measure’s Investment Essentials course will teach you what to consider before you dive in, the building blocks you need, and how to ask the right questions to take advantage of your extra time.

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