Much of the investment stuff we have been preaching is really best addressed to young people because you stand to benefit most. Much as grownups, even those in advanced age, can bring a lot of impact on their finances through investing, the scope for outstanding results gets limited with time. Why is that? Because, first, they have limited time to allow their investments to blossom. Two, you get more cautious with age (you can't easily afford errors since time is short) and that means that some investment positions that could be seen as aggressive but lending to better returns prospects would be considered too risky and unattractive. That simply leaves the coastline free to young people who are in the reverse position: plenty of time to take chances and assume aggressive investment positions which could prove high-yielding; enough time for investment gestation and growth.
That's why we passionately seek to sell a message to the you, not withstanding that you may have limited resources to work with. Two factors make this compelling:
What to Do
If you would really want to get in shape early - that's financially - there is no better time to begin than now, while still in your teens or early adulthood. What to begin to do will depend on the circumstances, but what is most compelling is to begin to learn how money works. That's financial education and it's much different from the academic or professional education you seek now (unless you're majoring in financial education). Yet, without it, you will diminish you effectiveness. So, begin early to learn about the financial market and instruments, financial products and concepts (like interest rates, savings, stocks, capital appreciation, inflation and its impact, companies and their structure, shareholding, fixed deposits, banking, types of bank accounts, insurance, earnings, debt, risk and a lot more) and what they mean for a person's financial success. If you begin early to know how these variables can affect your fortunes positively or negatively, it positions you for taking the steps that will yield early success to you.
Take steps, too, to begin to try your hand at money management. As you learn, nothing can reinforce your conviction as much as seeing pleasant results from some modest actions you have taken. For instance, in learning to put some money aside and withstand the pressure to spend it. Or opening a bank account and beginning to gradually build a reserve. Or buying some stocks and, hopefully, seeing some good movement in value. Not only will these fast track your learning process, they quickly begin to get you into financial maturity before you've had a chance to access big money. When you finally do, it can only be imagined how well you will run with it.
Using Mutual Funds
By the way, one easy way for beginners to start accessing the stock market is by using mutual funds. Rookies worry about the price movements and the jitters they send down the spine and may stay scared off. It doesn't have to be. Funds are designed to help you invest without worrying about those difficult decisions about buying or selling stocks. The fund manager handles all that. Your basic responsibility is to buy into the fund - just pick up the number of units you can afford and the rest is up to the fund manager. If you consider doing so, be sure to buy into a fund that has a proven track record of good yield.
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