Christopher Linkas is a financial expert and an investment advisor. He has been in charge of a credit company in Europe that specialized in investments that offered great opportunities. He believes that not enough millennials pay attention to investing. He thinks that people in their 20s need to do more in order to secure their financial future and get out of debt, which includes paying off their student loans.
One of the great things about being young is that you can save money and prepare for retirement even if you are not that rich or are not in such a good financial situation. The reason for this is that if you are older, you need to make a lot more money to start saving up enough for your retirement years. However, if you are young, you can save even small amounts of money and still make a difference when it comes to retirement.
Why is this so? The answer lies in something called compound interest. When you invest money in stocks or even in savings accounts, you will earn interest on your investments. The more interest you earn, the larger your account is. The great part about this is that you can earn interest on your interest. If you start young, your account will be quite large by the time you turn sixty, even if you only invested a small amount of money each month, simply because the money that you did invest grew through compound interest.
Christopher Linkas gives the example of someone who invests ten thousand dollars when they are twenty years old. By the time they are sixty, their money will have grown to seventy thousand dollars, even if they did not invest any more money after that. If you were fifty nine, you would have to invest around seventy thousand dollars to have that much money in your account a year later.
If you do not have that much money when you are twenty, says Christopher Linkas, you can simply invest a small amount each week or month, which will eventually add up over time.