Tomorrow. Tomorrow is the worst day to start investing, let me explain.
One of my favorite quotes from Warren Buffet is “Never depend on a single income. Make investments to create a second source of income.” You want the money you are able to save to be put to work, ultimately increasing in value.
You’re going to hear thousands of get rich quick schemes, many of which involve investments. Some of the most popular ones involve real estate, or stock trading. However, good investments take time to bear fruit.
In the long term, investing in the stock
market is perhaps the safest investment. Stocks outperform bonds, and in most cases stocks outperform real estate. Stocks move up and down quickly, making them unpredictable in the short term. However, looking at the bigger picture stock investments are actually safe.
One of the best things about being a millennial is that we are young. We have time on our side for investments. For example, over any 20 year period of the S&P500 the worst it has ever done was a 6% return annually. Meaning if you invested $10,000, and just let it sit during the historically worst time of the stock market you would have over $32,000 after 20 years without having to do anything. The lowest rate occurred during the heart of the great depression. On average over a 20 year period the return of the S&P500 is 8%, or 10% if you include dividends. That same $10,000 invested under average conditions would be worth $67,275, assuming you re-invested the dividends. Dividends are a sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits (or reserves).
The later you put off investing, the less you will be rewarded. Start investing as soon as you can (even if it is small amounts).