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The library of essays of Proakatemia

Investing, the growing trend today

Kirjoittanut: Aleksi Partio - tiimistä Ei tiimiä.

Esseen tyyppi: Blogiessee / 1 esseepistettä.
Esseen arvioitu lukuaika on 2 minuuttia.

Investing today is a fast growing trend. Especially teenagers and young adults are more interested in investing than before. The topic of investing is discussed in many coffee tables nowadays. One reason why interest in investing has grown is because of the advanced technology behind it. That makes it way much easier than for example 10 years ago. There are still many questions and fears about the topic.

Can you start investing if you have low income or not much money on savings? You don’t need to be rich or have a lot of money already in your bank account to be able to start investing. Investing is to put money to work, and that way make more money. It’s also saving money. If you have a saving account and you put money there every month, it would be more worth putting it in investments instead because there is the chance of making a profit. You can start investing with only 20€ per month. You just have to start doing it. Investing should start as young as possible.

There are many different ways to invest and different risk levels. The most common investment types are financial schemes, shares, property, or commercial ventures. I like to invest in stocks and mutual funds because I have some knowledge and I am interested to learn more. In my opinion, stocks are the easiest to understand and follow daily changes. When you buy stocks, you are basically buying an ownership share of the company. Investing in mutual you are giving money to a professional investor that invests your money to top shares on the market. For many mutual funds, there are annual costs from the profits for the bank but it’s safer to start with it.

One thing I haven’t opened yet is ASP-account. Its account where you put money and save it there till you are buying your own house. The interest you get from ASP-account is tax-free. The interest is not big but still easy and certain profit. When you want to buy a house and take the money out, you can get smaller interest for your mortgage because you have had ASP account. ASP-Account is also worth opening as young as possible. That’s on my to-do list when starting to get secure income.

Many people are scared about investing, why? There are of course risks when you invest but you must always remember that do not invest the money you won’t be ready to lose. This is probably the most important thing to keep in mind. If you have savings, why would you let the money lay in your bank account instead of putting the money work for you? There are low risk investing possibilities in every bank nowadays. You can always decide the specs of investments like small profit-small risk or big profit-big risk. Letting a professional investor for you is easy. You don’t need to know much about it, and there are no possibilities for stupid or emotional investments. Common sense and good money management is the key to starting investing.

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