Its good that you started saving up and getting interested to learn about investments early. Time is the essence when it comes to investments; the earlier you start, the more time you have to grow your investment pot(s).
As most investment platforms allow 18 years old as the minimum Age to open and investment account,you can start to prepare yourself first.
Here are some areas you can prepare yourself:
1) set aside emergency funds of 6-12months: emergency fund is important as it preapres us for unexpected life events (losing a job, or growing through low times in entrepreneurship) and help us to tide through hard times by aiding in paying our expenses and debts.
2) Spend within your income means: when comes to personal budget/finace planning, set aside some money for monthly expenses. If your spending is less than your allowance/income, you will have additional funds set aside every month for your investments
3) Read up/Learn about investments: go to NLB library to borrow investment books to read and build up your knowledgeable like stocks /REITS/ETFS/Bonds etc.
Check out on forums like seedly on the blog writeups and answers by seedly users. There are many useful information shared on seedly by experience investors, and its good to understand and build up your understanding on investments
4) Read financial news daily: reading news can be a pain to most students is on reading up news. News around the world are important as events shape today's financial markets. By understanding how events can drive the markets to eithee bullish or bearish, this helps you to build your concepts on investments which helps you make better decisions.
Congrats, You are fortunate to start early! Do continue to practice prudent Savings habits to building up your first pot of gold (savings), which opens up many investment opportunities in near future when you reaches 18 years old.
My advice would be to save up for a lump sum investments. Since you are currently 16, you have limited avenues to invest in the market. Take these 2 years to read up about stock picking and when the time is right, open a brokerage account and start investing in indivdual stocks with the amount you saved up. Thereafter, continue individual stock investments together with RSPs and robo-advisors as means of passive investing. Of course, don't forget to leave some of your savings for rainy days as your emergency fund. Even if you are young, you have to factor in a certain amount of risk you are taking in your everyday life that something might happen. Respect Murphy's Law!
On a separate note, just wanted to say you have a huge headstart over many others when you are already thinking about getting your financial journey planned out this early. Keep it up and all the best pal!
Nice here’s a hidden secret. When you are investing at a young age, you don’t need to put in as much...
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