Investing while you're young with no money is a good strategy

To all those young investors or investor wannabes or those who think it's just too complicated for them.

I'm here to tell you:

1) The world of investing is not just for the over 30's;
2) It's not something you should think about later; and
3) It's never too early to start.

There are probably hundreds of investors, like me, who wish that they thought about these things earlier on. I constantly feel like chiding my blissfully ignorant 18 year old self. But the beautiful thing about investing is that it's never too late to start either.

Once you have $100 in the bank it's time to start thinking about what to do with it. The banks notoriously have the worst interest rates around and there is a lot of money that is sitting around doing nothing in particular. Make it work for you. Make your money make money.

Remember 1% makes a difference!

$1,000 at 4% interest:
 Year 1: $1,040.00
 Year 2: $1081.50

$1,000 at 5% interest:
 Year 1: $1,050.00
 Year 2: $1,102.50

A $10.00 difference becomes a $21.00 difference in year two and keeps compounding. Now, I started thinking, well it's only $20, what do I care about that? But every dollar helps. The next difference is $32.87. You see what I mean? That extra money is working for you. It starts as only $10 but in the course of a year it starts to add up.

Now interest is not that high currently. But do you have money in your account at 1.8% interest? It could be earning you 3% or 3.3% in a term deposit or high interest savings account. Little things make big differences later on.