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Think you’re too young to start investing? Think again

. 5 min read . Written by Vanshika Goenka
Think you’re too young to start investing? Think again

As kids, we’ve all harboured fantastical dreams, like becoming a millionaire or a superstar, and owning huge mansions and private jets. But one dream—the dream of finally becoming an independent adult—is one we knew would happen for certain. However, somewhere down the line, reality hit us hard, and adulting got in the way of those naive dreams.

Investments, for instance, are an “adult activity” most of us try to put on hold. But what if I tell you that the right time to invest is NOW? That’s right, there is no better time to start investing than the present, and there’s no such thing as being too young to invest!

The fact is, with education right at our fingertips, investing has never been as easy as it is today. With the Kool Kanya course, “Finance Pass”: Personal Finance made easy”, just a few clicks away, you can kickstart your investment learning journey and learn all about stock market investments, mutual funds, fixed deposits and other saving instruments that will help you reap the benefits of your own personal finance decisions.  

Additionally, if you want to broaden your horizon of knowledge you should check out the Kool Kanya PowerPass, whose powers will unlock access to courses that delve into digital marketing, consumer research, content creation and so much more. Thus, helping you elevate your sense of self, gain useful knowledge and ultimately #RaiseYourPower.

With time comes experience, and what is better than being young and having a truckload of time to experience new things, learn as you go, and grow from your mistakes? Hence, we have collated a few reasons for you to start investing early:


  • Your post-retirement future
  • Time is on your side and so is compound interest
  • The time value of money concept
  • Helps save on taxes
  • Investing mistakes for you to avoid
  • Not investing
  • Putting all your eggs in one basket
  • Don’t be a follower
  • Don’t be a follower
  • Your post-retirement future

Some of us dream of retiring from work as soon as we begin, but getting to the point of early retirement requires us to be 100% financially safe and secure. This financial security can be achieved when we view our post-retirement phase through a financial lens.

When we account for the constantly fluctuating rate of inflation in India, we see how unpredictable market conditions can be. An apartment that was once bought at 20 lakhs is now valued at over 1 crore. So who is to say what the cost of living would be at the time of your retirement?

This unpredictability would result in a delay in your retirement plans and having to work for longer to afford the cost of living in the future. But by investing at an early age, and meeting your investment targets, you can fund your retirement with all the cash you rake in.

  • Time is on your side, and so is compound interest

When it comes to investing, time can be your best asset, because the longer you invest the larger your returns will be. This is only possible due to a simple phenomenon known as - Compound Interest.

Simply put, if you invest ₹10,000 this year and earn about 10% on the same, you’ve now earned an additional ₹1,000 which brings your total to ₹11,000. Furthermore, your money will still increase even if you don’t add additional investments in the subsequent years.

How, you might ask?

Because of compound interest, you will now earn 10% on the ₹11,000 instead of the base amount which was ₹10,000—giving you an additional ₹1,100 and bringing your total to ₹12,100.

This goes on for as long as you wish to invest, and by simply adding additional investments each year, you can earn a lot more than ₹12,100.

Earlier investment = Longer investment = Getting rich

(Trust us when we say that your future self will thank you for this!)

  • The time value of money concept

The concept of the time value of money states that the sum of money you possess today is worth more in the present than it would be in the future. This means that the money idling in your bank account will reduce in value over time, even considering the interest you gain on it.

Inflation reduces the value of money and thus its purchasing power over time, but one way to ensure that your money keeps increasing in value is to start investing. By simply letting compound interest do its thing, you will notice a subsequent increase in the worth of money you have invested instead of a gradual decrease. So don’t just save, but also invest!

  • Investing helps save on taxes

The Public Provident Fund (PPF) and the Tax Saving Fixed Deposit are 2 of the many types of safe investment instruments that can help you save on tax.

The PPF for instance, is a very popular tax-saving investment because all contributions, interest earned and maturity proceeds towards the fund are exempt from income tax. The Tax Saving Fixed Deposit, on the other hand, is great for individuals looking for a low-risk investment. It has a 5–6% rate of interest annually and according to Section 80 C, you can now receive a tax deduction for investments in the fixed deposit up to ₹1,50,000. Doesn’t that sound sweet?

Investing mistakes for you to avoid

  • Not investing

Quite ironically, the biggest mistake you could make is the decision to not invest at all.

No investments = No interest on savings.

Let’s put it into perspective -

Imagine saving about ₹2000/month for the next 40 years (480 months). Your savings would amount to only ₹9,60,000 at the end of this time period. That's not even a 10 lakh saving, not to mention what the value would look like after you factor in inflation.

But with a compound interest rate of 10% a year, your ₹2000/month investment a month would equal to ₹1.29 Crore in 40 years.

See what we’re getting at?

  • Putting all your eggs in one basket

Having a diversified investment portfolio has always been advisable because if you put all your eggs in one basket all it would take is one negative event to fully shake up your future financial stability.

By making stock market investments and real estate investments alongside PPFs, mutual funds and fixed deposits you can experience all the benefits of investing early and stay financially safe and secure, even in the eye of a storm.

  • Don’t be a follower

Being a follower is not inherently a bad trait but having a herd mentality alongside generalised FOMO could result in you following a bandwagon of investors only to be put in a bad spot. What is important to understand here is that you cannot fully be sure of whom or what the herd is following.

This is why forming your own opinions and strategies when it comes to making an investment is critical. So do your due diligence when it comes to researching investment opportunities and don’t let the crowd sway you.

The truth is, mistakes are inevitable, but with proper financial guidance, you can avoid making the mistakes that cost. This is why you should check the Kool Kanya course “Finance Pass: Personal Finance Made Easy” and gain additional insight on the basics and types of investments to help fastrack your investment journey and start investing early.

So invest in your future and sign up for the course now!

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