[Events] Should young people save first or invest earlier?

Comments

• koolgal

  10-18

  koolgal

  🌟🌟🌟Warren Buffett is perhaps the most successful value investor the world has known.  The main reason for his success is that he  started his investing journey at the tender age of just 11.  That's the magic of compounding!  The returns just compound massively over time like a snow ball rolling down the hill becoming bigger and bigger as it gathers more snow along its path. 

  Robert Kiyosaki, the famous author of Rich Dad Poor Dad took a slightly different path.  He believes in learning the technique of how to make money the smart way.  

   Both methods have their merits.  However I believe that Warren Buffett's method is slightly better.  

  Therefore I believe that  it is important to teach my kids from a young age the value of savings as well as the simple basics of investing.  Take for example, a simple trip to the bank like DBS.  I will explain how the bank makes money and that  we can become a small  owner of DBS simply by buying its stock. 

  Small children can grasp simple concepts of needs and wants as young as 4 years old.  My son once asked me to buy a toy car for him.  I asked him how would I pay for it.  He said that I would use my plastic card and tap it.    I would say that if he likes the toy car, he can put aside his coins into a piggy bank and when it is full, we can buy the toy car.  A simple lesson like this teaches him the value of savings and setting up a little goal to achieve his desire of wanting to buy a toy car. 

  The earlier young people start on their savings and investing journey, the bigger the long term returns will be.  That is why it is important to teach the kids as early as possible the value of savings and investing.

  There is a wise saying "Teach a man how to fish and it will feed him a lifetime."

  @TigerEvents  @Tiger_comments  @TigerStars  

  • Shyon: 
    Nice say, thanks for sharing
  • koolgalReplyzuma: 
    Best of luck 🍀🍀🍀
  • koolgalReplyzuma: 
    Have a wonderful weekend 🏝️🏝️🏝️
  • koolgalReplyzuma: 
    My pleasure 😍😍😍
  • zuma: 
    thx

  All 12 Replies
• jethro

  10-21

  jethro

  Should young people save first or invest earlier?

  Well, in my opinion there is a list here to set the stage right...

  1. Young people? How young? 

  We can first teach our kids the value of money. How come we need to work for money and why. Then they will have a better understandiing of it. That money is the "lubricant" of life essential needs and wants...

  We have to let them understand that "things don't just drop from the sky" You have to work hard for what you want to achieve and aquire. 

  During their schooling years we can slowly teach them about why we need to pay the shopkeeper to get our groceries and other stuffs that we need and how the "system" works...

  And if they can understand then we can slowly teach them about simple economic theories and how it works. 

  This would let them have a better appreciation of the economy and the process of buying and selling or trading goods..

  2. You need money first before you can invest.

  First you need funds (money) before you can do any investments right?

  As such, they need to go out into the working world, they can accumulate their savings for investments...this would let them learn that there is "no free lunch"

  If parents just give their children a headstart by investing for them first while they are youngthat will be good as they would not have trouble in their quest to accumulate their savings for investments...

  But then again, may I ask if this is a good idea? 

  3. Best to let our kids to "earn their keep" first 

  In this way they would better appreciate the value of money and will invest and not gamble on the salaries they earned.

  3. Time is money and the essence of investing.

  So, as soon as they can understand how the market works, learned enough and done enough data collection and due diligence on their selection of stocks or equities then they can start investing.

  So guys this is my two cents worth...

  Happy investing guys!

  Cheers!

  
  

  • PSG2010: 
    I completely agree with your points
  • winky9: 
    Good points! Teaching kids about money is crucial [Smart]
• icycrystal

  10-18

  icycrystal
  save before spending. likewise, need to save for emergencies before investing. also, do not borrow to invest. market can be volatile so important to have  [USD] [USD] [USD] before doing anything else.

  @Shyon @Universe宇宙 @GoodLife99 @rL @HelenJanet @LMSunshine @koolgal @SPACE ROCKET @Aqa @TigerGPT

  All participants who leave a comment will receive 5 Tiger Coins. Sharing the post and tagging friends will earn you an additional 5 Tiger Coins.

  • koolgal: 
    Thanks for sharing your valuable insights 😍😍😍
  • TigerGPT: 

    非常同意您的观点！在进行任何投资之前，储蓄是非常重要的。储备资金可以用于应对突发状况，帮助您应对紧急情况。此外，我们也应该避免借钱来进行投资，因为市场可能会波动，借款投资存在较大风险。

    作为投资者，首要任务是建立一个紧急储备基金。这个基金应该足够您应对可能发生的紧急情况，例如突发疾病、失业或其他意外事件。一般来说，建议储备3至6个月的生活费用作为紧急储备。

    当您的紧急储备基金已经建立起来后，您可以考虑进行投资。投资有助于增加财富，并为未来的目标提供资金支持。然而，投资也存在风险，因此在进行投资之前，您应该进行充分的研究和了解。

    在投资之前，您可以考虑以下几点：

    设定明确的投资目标：确定您希望实现的财务目标，例如退休、子女教育、购房等。  

    理解风险承受能力：评估自己对风险的承受能力，确保选择适合自己的投资方式和产品。  

    分散投资风险：不要把所有的蛋放在一个篮子里，通过分散投资降低风险。可以考虑投资不同的资产类别和行业。  

    深入研究：在投资之前，充分研究和了解所投资的公司、行业或基金。可以查阅公司的财务报告、相关新闻和分析报告等。  

    定期审查和调整：定期审查投资组合的表现，并根据需要进行调整。  

    请注意，以上是一般性建议，具体的投资决策应根据个人的财务状况、风险承受能力和投资目标进行。建议您在进行投资之前咨询专业的财务顾问或投资顾问，以帮助您做出明智的决策。

    重要提示：以上内容仅供参考，不构成投资建议。投资涉及风险，股市有波动性，投资者应自行承担风险。

• Success88

  10-18

  Success88
  Yes now many younger already know what is FIRE and they had start very early. My son which is 16 this year. Told me he want to use his saving to buy S&P 500. He want to start invest now and retired and travel the world to camping at age 45year old. I believe as long as you have the right attitude and mindset you can do it. Invest young is possible @TigerEvents @HelenJanet @koolgal @SR050321 @MHh @SPOT_ON @Fenger1188 Join in
  • Success88: 
    Thanks Bro
  • Success88: 
    😅😅😅
  • Success88: 
    Yes Yes
  • koolgal: 
    You must be so proud of your son. 😍😍😍
  • SPOT_ON: 
    [Heart]

  All 6 Replies
• Shyon

  10-18

  Shyon
  On this issue, both viewpoints have their merits, and young people can consider a combination based on their circumstances.

  First, the perspective of focusing on earning money emphasizes the importance of a stable financial foundation. For many young people, accumulating a certain amount of savings can provide greater security and flexibility. Without sufficient funds, investing can carry higher risks, potentially leading to financial stress.

  On the other hand, starting to invest early takes advantage of the compounding effect over time. Young people have a longer investment horizon and can endure short-term fluctuations, allowing them to achieve growth through smaller investments.

  In summary, the best approach may be to focus on earning money while gradually starting to invest on a small scale. This allows individuals to accumulate wealth while also learning investment knowledge. Ultimately, this creates a good balance for more stable wealth growth.
  @TigerEvents @Tiger_comments

  • ShyonReplykoolgal: 
    You too enjoy your weekend ya
  • koolgal: 
    Thanks for sharing your valuable insights 😍😍😍Have a wonderful weekend 🌈🌈🌈
  • Shyon: 
    Come and join yo @Fenger1188 @GoodLife99 @Universe宇宙 @b1uesky @icycrystal @Barcode @nomadic_m @koolgal @rL
  • TigerGPTReplyShyon: 

    As an AI financial analyst, I believe that there is no one-size-fits-all answer to this question, as it depends on the individual's financial situation, goals, risk tolerance, and time horizon. However, I can provide some key considerations for young people to keep in mind when deciding whether to save first or invest earlier:

    Establish a solid financial foundation: Before considering investing, it's important for young people to build an emergency fund and pay off high-interest debts. Having a safety net and being debt-free can provide a sense of financial security and reduce the risks associated with investing.

      

    Understand the power of compounding: Starting to invest early allows young people to take advantage of compounding, where the returns generated from investments are reinvested to generate further returns over time. This can result in significant wealth accumulation in the long run.

      

    Consider investment knowledge and risk tolerance: Investing requires a certain level of financial literacy and an understanding of investment products and strategies. Young people should take the time to educate themselves about investing and assess their risk tolerance before diving into the market.

      

    Diversify investments: Diversification is a key principle of investing. Young people can consider starting with low-cost, diversified investment options such as index funds or ETFs. This helps spread risk and allows for participation in the potential growth of different asset classes.

      

    Seek professional advice: It can be helpful for young people to consult with a financial advisor who can provide personalized guidance based on their specific goals and circumstances. A professional can help develop a financial plan that balances saving and investing based on individual goals and risk appetite.

      

    In conclusion, the decision of whether to save first or invest earlier depends on personal circumstances and goals. It may be beneficial for young people to strike a balance between saving and investing, establishing a strong financial foundation while taking advantage of the long-term growth potential of investments. Remember, it's important to carefully evaluate personal financial situations and seek professional advice before making any investment decisions.

    Disclaimer: The information provided is for educational purposes only and should not be construed as financial advice. Investing involves risks, and individuals should carefully consider their own financial situation and consult with a professional advisor before making any investment decisions.

  • Shyon: 
    How do you think? @TigerGPT
• Aqa

  10-19

  Aqa
  Young people should save money from unnecessary expenditure and invest early. Charlie Munger famously remarked, “The first $100,000 is a b****, but you gotta do it.” This statement underscores the initial hurdle many young people encounter when striving to build their savings. Achieving financial security often requires short-term sacrifices and disciplined budgeting, but the long-term benefits can be transformative. By embracing frugality, prioritizing savings, and investing hard earned cash, young people can achieve long-term success. Thanks @TigerEvents @icycrystal @SPOT_ON
  • Aqa: 
    @SPOT_ON [ShakeHands]Thanks for tag
  • Aqa: 
    @ZEROHERO [ShakeHands] Thanks
  • Aqa: 
    @icycrystal [ShakeHands] thanks for tag
  • Aqa: 
    @rL [ShakeHands]
  • Aqa: 
    @jethro [ShakeHands]

  All 7 Replies