Start Investing Early

For many young Nepalis, money usually means earning, spending and saving. A student may save pocket money, a young employee may keep part of their salary in a bank account, and someone working abroad may send money home for family needs. These habits are useful, but saving alone is not enough in today’s economy. They also need to learn the habit of investing early. Investing simply means using money wisely today so that we can get more return in the future. It does not mean getting rich overnight or following rumours in the share market. Real investment requires patience and knowledge. 

Time is one of the significant benefits for youths because when a person starts investing at a young age, they have more time to learn, grow, and learn from mistakes. Compounding refers to the process of earning returns on both the principal and the returns already generated. Initially, the growth may appear insignificant, but over time, it tends to multiply. By being consistent, a monthly investment of 500, 1000, or 2000 rupees can grow into a large amount. Due to inflation, prices of food, transportation, health services, rent, and education tend to rise, so saving is important, but keeping money just idle means nothing. It further reduces purchasing power in the future. So investing is necessary since it helps youths to protect their money from inflation and gain long-term financial security.  

So early investment may also help them become financially independent, and they can also be prepared for their future goals. Economic uncertainty is another challenge. There may be pressure to leave to look for better-paying opportunities. Work can be highly competitive, and earnings may be quite low at times. Investing your money can act as a security weapon. 

A young investor who is rushing to make money is risky. Social media raises unreasonable expectations. People make posts on making quick money on shares, betting, internet trading, or on some unknown software. So, youth with high aspirations may get influenced. But we need to know that investing is different from gambling. Investors must take their own time to invest. Youths must not invest in things they don’t know. They must stay away from schemes that guarantee them to double their money, which could be a fraud. 

Before putting money anywhere, young people should ask: What am I investing in? What are the risks? Is it regulated? Can I afford to lose this money? These questions help avoid serious financial mistakes. Young investors can choose simpler investments like fixed deposits, mutual funds, government securities, IPOs, or a few stocks if their understanding, risk-taking ability, and financial targets permit. Also, diversification refers to investing into different companies instead of one and compromising all your money in that one company and having a diversified portfolio is low-risk and offers steady income. 

What's more, mutual funds bear huge demand these days. It is because they are managed by professional managers. Youth should also set up an emergency fund before they spend a lot of money. This is cash that is saved in a safe place in case of an emergency, like getting sick, losing your job, or a family emergency. Once they have a basic emergency fund, they can spend regularly without having to take money out quickly when things go wrong. Businesses, banks, and development projects can all benefit from money spent in formal financial systems. This helps the country build a better financial culture.  Investing early on helps them become more disciplined, confident, and financially independent.