Young Canadian Investor #13 — The Benefits of Delayed Gratification
Far be it from me to tell you to not indulge in the pleasures of youth, whatever those amount to for you. You need to fill your time with experiences now to be able to look back fondly on them later when energy, passion, and priorities have evolved you into a different person. Don’t worry, I’m not here to be a wet blanket.
What I’m here for is to illustrate how investing is the bridge between your horny, idealistic, sleep-deprived self to the person you’re going to become after you’ve lived your fair share. It may not be immediately worth it, but investing now can lead to opportunities that aren’t presently available to you.
If you follow through on some of my suggestions about saving money, invest in stocks for at least a decade, and stick to making regular contributions, that extra 40 or 50 grand just lying around, while unimaginable now, will be available for you to take the next major step in your life. That may be starting a business, starting over somewhere new, or putting a down payment on a house, really any fantasy turned into tangible reality due to the benefits of compound interest and living below your means.
If I may get a little heady and sentimental, what do you dream about? If I may get a little more to the point, you already know that time is an inexorable progression toward pushing daisies, so what are you waiting on to move closer to the life you want?
It’s really all about rustling up your first $1000, investing it in a TFSA, and contributing to it from there until you reach your target number. If you think this investing business is too complicated for you, I beg to differ. My new book, Nine Steps to Successful Investing: A Guide for Young Canadians, will walk you through the process in plain language in no more than an afternoon. Give it a go if you’re ready for your nest egg to grow at a considerably greater clip than the pennies your bank throws into your savings account every month.
Feel free to drop any questions in the comments!
Disclaimer: This article is meant for general education purposes only. It does not constitute financial advice as I am unaware of your personal situation. Consult with a professional who abides by a fiduciary standard before making any investment decisions.