Go Back
Why should young people start investing right now

Why Should Young People Start Investing Right Now, and What Are the Options?

By Gurmanpreet | May 5, 2023

Emergency funds are important when life throws unexpected expenses. You may be doing everything right, but if you don’t set aside funds, it can cause problems. Moreover, most people don’t invest money to earn passive income for emergencies.

Talking about investments a few years back, you would think of an image of grey-haired businessmen in suits shaking hands after a successful deal. Most youngsters would be satisfied with their well-paying jobs providing regular payments. 

Unlock the Secrets: Find the Best Ways to Build an Emergency Fund Now.

But this has changed now!

Young people have different perspectives on investment. Not because they’re mature, but because technology has made investing easier. There’s a pool of information online, communities to coach, and microlending platforms that guide young and all investors every step of the way. 

Young people have different perspectives on investment

Finder’s survey shows that 75% of Gen Zers and millennials are planning to invest since most social media influencers are entrepreneurs and investors. That pushes us to ask this question-

Is investing while you are young a good option?

Many young individuals find it more convenient to delay making investment decisions until their financial situation is more stable. However, even with student loan debt and low earnings, you are actually in a good position to enter the investing world.

You still have a lot of time to research and invest

1. You still have a lot of time to research and invest

Time is in your favor in many ways as a young investor. Young individuals frequently have lots of free time to dive in and research the finest investments and keep up with current trends. The money you invest now has more time to grow before you probably need it, which is more important. A lesser investment made now may yield a higher return than one made later with a bigger sum. 

You can build good financial habits

2. You can build good financial habits

The kind of reckless spending habits in young people won’t work if your primary focus is investing. You can become much more aware of the money coming in and going out if you take the time to research and invest. There’s a big difference between spending $100 on fun activities with no returns vs. meaningful investments.

3. You can easily bounce back from any risk

Although investing is a fantastic strategy to create long-term wealth, it is also fundamentally risky. So it’s preferable to take a chance while you’re still young to recover if things don’t work out. You’ll probably become far less willing to take the risk after you have a family, a mortgage, and other obligations. 

Where should you put your money?

There are a lot of possibilities available. The stock market is typically the first thing that comes to mind when thinking about investing. Nowadays, cryptocurrencies are extremely popular. 

You can argue whether investing in stocks or cryptocurrencies will yield greater returns. However, once you dig into the details, it becomes clear that neither stocks nor cryptocurrencies are reliable and stable. 

Ready to make your money work for you? Learn how to invest online today.

Microlending or microloan investment is one of the best options for young, amateur investors. Why? They are less risky and simpler than stocks and crypto. Google microlending and you’ll find a lot of platforms to start investing. Trusted microlending platforms like Lendee even allow you to invest as low as $100 to start your journey of making profits. 

How much should you invest?

There are a few things you should keep in mind while deciding how much money to invest, whether in microloans, stocks, or cryptocurrencies:

1. Be clear about your goals before investing

Your goals can help you get a general notion of how much you wish to save. If it’s a REIT (real estate investment trust), a deposit of $1000 might be sufficient. It will eventually increase with time. If you are looking for a good return with less risk, it’s best to have an investment plan.

Knowing how much you want to save can help you determine the appropriate portfolio allocation and level of diversification. Your rate of return may vary depending on the type of investment you make. Microloan investment can offer even greater potential returns. 

It’s critical to get started as soon as you can, regardless of the option you choose. Your money will grow slowly if you only save and don’t invest, especially now that interest rates are at historic lows. With compound interest, your savings can grow faster.

2. Invest in what you’re comfortable with

What if you want to limit risk to a minimum and are uncomfortable investing in riskier asset classes? It’s referred to as risk tolerance. It’s crucial to invest in things you find comfortable.

If you tend to worry a lot and prefer to sleep soundly at night, you should prioritize low-risk investments. You can invest in higher-risk assets if your main goal is to achieve large returns no matter what.

If you have decided on a low-risk investment, microloans can be your best bet compared to other asset classes. 

What is the accessibility of the asset?

It is important to know how simple it is to start investing and how much money is required. Investing in any plan requires a certain level of knowledge and funds.

For instance, you may begin trading in stocks with a little amount. If you plan to pick stocks to invest in, you must research the broker and the businesses you’ll be investing in. This may be time-consuming and take a lot of effort. 

You need to invest a lot of money and conduct extensive studies when dealing with other sectors, such as real estate financing. One of the key advantages of investing in microloans is that you can get started with as little as $100 without extensive study or research. If you invest in microloans in your 20s, you are entering the investment world at the right time.

What are the biggest problems in investing money?

Modern investors have various options and simple access to free information. But with so many options, research can be overwhelming. Many investors can filter the information and compile trustworthy sources that adhere to their investing preferences.

Even if you have a firm grasp of reliable information, you still run the risk of losing money if wrong information or unfounded uncertainty enters the market. Inaccurate information finds its way into the market, even if the time for correction or exposure is frequently shorter.

However, the risk of losing money due to uncertainty and wrong information is much less in microloans. It minimizes the risk factor by allowing you to diversify your investments. 

Microlending is the newest way of earning passive income for youngsters right now! 

What are the benefits of microloan investment?

  • The primary benefit of microloan investment is that it’s an online process. You don’t have to go physically any place.
  • You get complete control over your investments. You can view the profiles of borrowers before investing in them and decide the profit you want to make. 
  • If you are starting for the first time, you can start small and then reinvest once you gain profit through the platform. 
  • You can lower the risk of investing in microloans by diversifying. 

Although there are numerous advantages, finding a reliable microlending platform is the real challenge. Lendee is a transparent money-investing app that removes any unnecessary stress.

Don’t wait another minute! Start earning more with your money by investing now.


Investing in your early 20s has several benefits, with the biggest of all becoming financially independent. 

In all honesty, the microlending industry is growing rapidly. So don’t wait anymore.