Why You NEED to Start Investing Today

To most, the term inflation doesn't mean much. But to a select few, it causes nightmares. If you're like the majority of people who neglect the reality of what inflation is doing to our economy, then you are going to live life paycheck-to-paycheck for the rest of your life. However, if you realize the threats that come with inflation and act accordingly now (i.e. The Minority Mindset), you will be thanking yourself for years to come. In this post, I go over the reasons you need to start investing today, and how taking the initial steps now will create a better tomorrow for you and your loved ones.

The average annual inflation rate is at record highs, currently sitting around 3.22%. That doesn't sound too bad, until we realize that at that rate, prices will double every 20 years. So, if you're currently purchasing your Starbucks's Grande Americano with hazelnut (yes, this is my preferred drink while I'm traveling for work) for $3.98 now, this means that it could likely get close to $5.00 in the next decade or so.

While you may believe that you are a frugal spender and are living below your means, that's great and all, unless you are have your money sitting in a savings account. According to FDIC data, the average interest rates for savings accounts are below 0.1%, at 0.09%. So, what does this mean for you? Well, given that you are only accruing less than 1% in interest on your savings while inflation rates are 300 times greater, the money that you have saved now will not be worth that amount on the same date next year, the year after, and so on.

Alright, you're now somewhat aware of inflation and how it is creating a greater gap between with rich and the poor, and you're ready to begin investing. So, what's next? There are many reasons why you need to begin investing today, but these are the fours areas that elevated my interests in doing so.

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Talk to a few people who have been investing, both long-term and short-term.

By talking to those who have been investing for many years, you'll be able to learn about the benefits of investing for retirement as well as what they have done to continue contributing after all of these years. On the other hand, you should look into talking with individuals who recently began investing, as they are likely involved with some of the investment apps that I will be mentioning later in this post.

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\Watch content on YouTube, read books, and follow discussion boards on LinkedIn to learn more about the options you have with investing.

You'll be able to receive several perspectives from others on investing in industries/companies that are mature (i.e. McDonald's) or are still new to the market (i.e. A.I. Technology companies). Furthermore, the conversations you'll begin to have with others will be more focused on further educating yourself as well as gaining invaluable insight on becoming financially free. Your friends and family will begin to see your commitment to this, which will likely make them also motivated to begin investing.

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Open an investment account or portfolio with a bank, broker, etc.

We live in an era where investing shouldn't be an option, but a priority. It is now as simple as using only your thumbs to begin your steps to a better future. Before, you would have had to contact a broker to set up an account for you, where you typically needed a minimum of $1,000 to open the portfolio. Not only that, but there were annual fees for having an account with that broker, and it costed you money to trade shares of stocks each time you requested to do so.

Although going through a broker is great if you have a larger sum of funds on hand and hope to stay away from the nooks & crannies of doing your own research, you now have the opportunity to open your own investment accounts for free or as little as $5. The overload of investment apps that have sprouted in the past few years has made it almost second nature to begin investing. Below are some of the better investment apps out there. If you're looking for more information about some of the amenities these apps offer, head on over to our other blog posts about investing.

M1 Finance, Robinhood, Acorns, Betterment, Stockpile, Stash, WeBull, TD Ameritrade, Charles Schwab, and many other investment brokers enable you to invest with little-to-nothing.

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Ask as many questions as possible! It might be the most important thing.

As silly as your question may seem, you won't know the answer to it unless you just ask. Investment brokers and regular individuals alike should not degrade someone for not knowing everything about investing. Just like a doctor who has 20-plus years of experience in the medical field, but is continuously learning new methods, medicines, etc., people who have been successful investors are also learning new information everyday.

You'll also be able to learn if certain investment opportunities are right for you, while pushing away potential options that you don't feel comfortable with. For instance, I have a few friends who are fully devoted to Forex trading (the buying and selling of foreign currencies) and are doing quite well in it. I was interested in learning more about the opportunities it presented and talked to them about the ins-and-outs of it all. After further consideration and discussion, I realized that Forex trading wasn't for me, as it was an area I wasn't committed to learning or investing in. Don't just invest in something because others are appearing to do well in it!

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Note: I am not a financial adviser, but I have been able to take the necessary steps to begin my future to a better future. I was able to pay off $32,000 of student loan debt in less than 18 months after graduating from my undergraduate studies. I also have close to $30,000 saved up in several investment portfolios in less than three years as well as no debt whatsoever. This is not my way of "rubbing it in" your face, but I do believe I have been able to recognize the importance of investing today in order to create a better tomorrow.