A young age is the best time to save and invest money for a variety of reasons. First, by investing at a young age, you develop an emergency cash fund, which you can tap into for the inevitable rainy-day emergency. Second, young investors learn the financial world at an early age and develop sound savings habits. But most of all, if you save and invest at a young age, you enjoy the benefit of what Albert Einstein described as the most powerful force in the universe: compound interest. The earlier you save and invest money, the faster the money will grow into a healthy savings that can be used for the purchase of a home, a child’s education, retirement or other major life events.
December 3, 2008
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