Reasons why young people must start investing immediately

Ayu is 32 years old and has worked in a foreign-owned packaging factory for 8 years, earning 50,000 yuan a month (working night shifts). His wife earns 30,000 yuan a month, and with their combined year-end bonuses, their annual family income is about 1.1 million yuan. They have a 3-year-old child and currently rent an apartment without a mortgage, but they have a 600,000 yuan car loan. After deducting rent, car loan payments, nanny fees, filial expenses, and living expenses each month, there is very little left. Looking at the ever-rising housing prices, the idea of buying a house to settle down seems like a distant dream. Perhaps you don't have a rich father, so you need to invest and manage your finances as early as possible. Here are the reasons why you must start investing immediately:

Inflation is eating up your income

Thinking that since the salary is low and you can't save money anyway, you might as well enjoy life and pursue small joys, unwilling to sacrifice your quality of life for saving money. But have you felt it? Everything you need in life—fried chicken, coffee, bubble tea, toilet paper… everything you can see and use has quietly increased in price. Prices won't stop inflating just because you decide to become a "laid-back" person. The ever-increasing prices are eroding the quality of life you thought would never change. You must start investing and managing your finances to fight inflation.

Avoid becoming a vulgar old man

As the population ages, young people become unwilling to have children, the elderly live longer, and social welfare conditions deteriorate, don't assume that the plight of becoming homeless and receiving social assistance won't happen to you. The National Development Council predicts that by 2040, on average, every two young adults will have to support one elderly person or child. In the past, a father could support a family by working alone; now, let alone supporting a family, he can barely support himself. As you age and gradually lose your ability to work, an unexpected event can turn you into a "low-income elderly person." Investing can help you preserve your assets, avoid becoming a low-income elderly person, and prevent you from becoming a burden on society.

"Shōrū lōroku" is a new term that has emerged in Japan. It refers to elderly people who live a low-class life.

People who still have the idea of buying a house

If you haven't been scared off by housing prices and haven't given up on the idea of buying a house, then you should start investing immediately. Establish a simple and achievable investment plan and execute it with discipline over the long term. Buying a house isn't an unattainable dream for those willing to invest; it just requires time to accumulate. But for those who love to complain, blame everything, and talk the talk but don't walk the walk, it's truly a pipe dream. As Warren Buffett famously said, "Investing is like rolling a snowball. Find a road with wet snow and a long slope, and the snowball will grow bigger and bigger." A young person's greatest asset is time; the earlier you start, the greater your chance of reaping profits.

Warren Buffett famously said, "Investing is like rolling a snowball. If you find a road with wet snow and a long slope, the snowball will just keep rolling and getting bigger."

People who aspire to financial freedom

What is financial freedom? It's the FIRE (Financial Independence Retire Early) concept that's become popular in recent years. Financial freedom means having enough money to use without having to work. Early retirement doesn't mean not working, but rather not having to work for money and being able to do what you want. For salaried workers to achieve financial freedom, you must invest and manage your finances. This doesn't mean you have to start a business like Terry Gou or Morris Chang, but rather that you need to understand financial knowledge and accumulate assets through investment to achieve your financial freedom (FIRE) through passive income.

FIRE (Financial Independence Retire Early) means "financial independence and early retirement".

Doing nothing is the riskiest time.

My parents often told us that starting a business is very dangerous and could lead to financial ruin. They used their own failures to warn me against investing in businesses lightly, advising me to just work hard. As a result, I only dared to put my money in bank fixed deposits and buy savings insurance. I did nothing or made the wrong decisions at the age when I should have been investing and managing my finances. At first glance, there seemed to be no loss, but in fact, doing nothing is the riskiest time. Because if you don't invest any more money, your 1 million will be 14.78 million in 35 years (calculated at 8% compound interest). If you do nothing, your 1 million will still be 1 million, and it may even have the purchasing power of only 800,000 due to inflation.

Achieving an 8% return on long-term investments is not difficult. For example, the annualized return of the Yuanta ETF (0050) over 15 years is approximately 8% to 11%.

Note: Past performance is not indicative of future performance.

Saving 7,148 yuan per month will still amount to 14.8 million yuan after 35 years.

Image: MSN Finance

in conclusion

Faced with the world's indifference, you helplessly resort to "lying down" as a silent protest. But can lying down really change anything? Nothing. If you're tired, lie down and rest for a while, but please don't lie down forever, because doing nothing is the riskiest time. If you hope for a happier and wealthier future, to be able to buy a house, to have money to do what you want, and not to become a burden on society, living the life of a lowly old person, then from now on, please make some changes. Start trying to save and invest money, even if it's just a few thousand yuan a month. Let time be the greatest weapon for accumulating assets. This is not an easy thing, but it's never too late to start.


This article states:
The author has no financial dealings with Yuanta Securities Investment Trust. The content of this article represents only the author's personal views. Please think independently and make a careful assessment before investing, and be solely responsible for any subsequent profits or losses of any investment.

(This article is copyrighted by Darryl. Unauthorized reproduction of the text and images is prohibited.)