Investing Smarter While You’re Young can feel out of reach for many young people. They may think they need thousands saved up or a finance degree to get started. But the truth is, you don’t need either to start investing early in life. What you do need is time and a willingness to learn about the process.

You may also need to be patient and stick with your strategy, even if markets drop. Many young investors find it helpful to begin with a more conservative investing approach and then gradually increase their risk as they gain confidence and experience. This can be one of the most sensible ways to build wealth from a young age.

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If you begin investing early in life, you can also take advantage of a powerful concept known as compounding interest. Essentially, this means that every dollar you invest grows over time by continually reinvesting your earnings. For example, if you began investing $1,000 at age 20 and never added anything else, it could grow to more than $32,000 by the time you retire at age 70.

Investing early in life can also help you achieve retirement goals much earlier than you might have thought possible. The combination of the magic of compounding, the ability to diversify your portfolio, and tax breaks can make it easier than ever for young adults to pursue financial independence. This could mean freedom to work when you want, travel, and live life on your terms.