A little money, a lot of patience.

October 2, 2009 – 6:19 am

I recently made a posting on Facebook asking my friends about their involvement in the stock market. I wanted to know if people my age are investing, and if not—why not? What I found was intriguing – most young people aren’t investing, but not because they don’t have the money. Young adults in school or starting their career may not have lots of spare cash, but once bills are paid, there’s usually a little left for a good time. And investment opportunities can often begin with as little as $100?

So why isn’t it happening? Patience. Or rather, lack of patience.

If we really wanted, we could skip a night out with the friends and buy a few stock shares. But we choose not to because the rewards are not immediate. Success in the stock market requires a great amount of patience and a $100 dollar investment certainly won’t make you wealthy, so most wait for that larger income to invest.

The problem is that procrastination doesn’t produce dividends. And as income increases, so do the bills. Do yourself a favor and make a budget now – regardless of your income. Figure out the percentage of your income you’d like to be spending for different areas in your life, and most importantly don’t forget a category dedicated to savings or investments and watch as that number grows as your income increases. Visit http://www.practicalmoneyskills.com/personalfinance/savingspending/budgeting/ to get started. You’ll thank me later.

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