To those in your 20s who aren't using NISA

Many people around me still haven't started using NISA.

I'm interested,
I know I should do it,
but I don't know how,
it seems kind of difficult,
investing feels like gambling and it's scary.

I hear these kinds of things quite often.

I certainly understand how you feel.

When you hear the word investment, you get an image of having to do difficult things like watching charts, buying when prices are low, and selling when they are high.
That's the kind of difficult image people have.

If I fail, I'll lose my money.
I might get scammed.
I don't know what to buy.

I think it's natural to feel that way.

But I also think it's a bit of a waste not to use NISA in your 20s.

NISA became a new system in 2024, with an annual investment limit of up to 3.6 million yen and a lifetime tax-free holding limit of 18 million yen. In other words, it has become a very significant system for those building assets over the long term.

Of course, not everyone can use up the full 18 million yen.

But if the government has provided a tax-free system, I think it's better to use it, even if only a little.

The reason I started NISA was because a colleague from my old company told me about it.

I wasn't knowledgeable about investing from the start.
In fact, I knew nothing at all.

But once I actually started, I began to study money.

Why is it going up?
Why is it going down?
It increased today, why is that?

In that way, I gradually became interested in money and the economy.

This might be the best thing about starting NISA.

It wasn't just about increasing my money,
it became a catalyst for thinking about money.

Many people find investing scary.

But I think the true nature of that fear is probably just not knowing.

It's scary because you don't know.
It's scary because you don't know how much it might drop.
It's scary because you don't know what you are buying.
It's scary because you think if you put in 1 million yen, it might all disappear.

But, for example, how much did it drop during past market crashes?
How do investment trusts work?
Why do we diversify investments?

As you learn these things little by little, the way you perceive the fear will change.

Of course, there are risks in investing.

It is not guaranteed to increase.
In the short term, it will naturally drop.
There are days when it is less than it was yesterday.
If a market crash occurs, you could see a significant loss.

This is something you must never forget.

The Financial Services Agency also explains that while stocks and investment trusts can be expected to provide higher returns than savings, there is a risk of losing the principal. Based on that, they suggest the concept of "long-term, installment, and diversified investment" as a way to manage anxiety.

That is why I believe there is no need to put in your living expenses.

There is also no need to force yourself to put in a large amount of money.

First, try putting in just a little bit from the money you can afford to use.
I think that first step is important.

There are many services where you can start NISA with as little as 100 yen.

100 yen is about the price of a single juice.

Use that 100 yen to enter the world of investing just once.
Even just doing that is completely different from doing nothing at all.

If it were me, I think it's fine for beginners to start with about 1,000 yen.

Try putting in 1,000 yen.
If it becomes 1,050 yen, you have gained 50 yen.

It might only be 50 yen.

But when you see that,

"I wonder what would happen if this were 1 million yen."

You start to think like that.

I think this feeling is important.

You don't have to try to make a huge profit from the start.
You don't have to understand everything perfectly from the start.
First, try participating in the market with a small amount.

I think that alone is a pretty big step forward.

Honestly, I think it's better to put 1,000 yen into NISA than to spend 1,000 yen on pachinko.

I don't mean to say that pachinko is bad.
I think having fun is also important.

But if you have 1,000 yen that's just going to disappear anyway, I think it might be a good idea to set aside some of that for your future self.

I think many people don't know what to buy.

S&P 500.
All Country.
TOPIX.
Nikkei Stock Average.
Indian stocks.

There are so many options that it actually becomes confusing.

I understand that feeling too.

At first, I think one way is to look at the rankings or popular products on brokerage websites.
However, rather than deciding based solely on rankings, it's better to gradually look into what kind of assets the product is investing in and how much the fees are.

You don't need to understand everything from the start.
But since you are putting in your own money, I think it's important to have an attitude of trying to learn little by little.

If you're going to start NISA, I think the first step is to open a brokerage account.

The ones you hear about often are SBI Securities and Rakuten Securities.

If you use Rakuten often, Rakuten Securities might be easier to use, and I think many people choose SBI Securities otherwise.
I've also heard that Rakuten Securities has an easier-to-read screen.

I think you should research this yourself and choose the one that seems easier to use.

The important thing is not to get stuck on choosing the perfect brokerage firm.

Research, open an account, and try buying a small amount.

Just doing that will make investing feel much more accessible.

I think the biggest advantage of starting NISA in your 20s is, after all, having time.

In investing, there is a concept called compound interest.

Simply put, it is a mechanism where money grows over time by reinvesting the profits you have earned. The Financial Services Agency also explains that the effect of compound interest becomes greater when you continue investing for a long period.

This is quite significant for those in their 20s.

You don't have to put in a large amount of money right away.
There is meaning in being able to continue even with a small amount for a long time.

It is easier to make time your ally if you start in your 20s rather than waiting until your 30s, 40s, or 50s.

That is why I think it is a bit of a waste when I see people in their 20s who are not using NISA.

I don't mean to go as far as to say that you are "wasting your time."

But I think that if you can put your limited time to work for your money as well, your anxiety about the future will decrease a little.

There are many anxieties about money in the future, such as the need for 20 million yen for retirement or the fact that prices are rising.

Just leaving your money in the bank won't make it grow very much.

Of course, cash is important.
Emergency funds are also important.
I think it is necessary to have money that you can use immediately if something happens.

But instead of keeping everything in cash, using NISA within your means is something I think is important for the coming era.

That is what I believe is important for the times ahead.

To you in your 20s who are not using NISA.

I understand that it is scary.
I understand that it seems difficult.
I also understand that you don't know where to start.

But why not try starting with just 100 yen for now?

100 yen is about the price of a juice.

You don't have to save tens of thousands of yen every month from the start.
Open an account and try buying just 100 yen worth in the growth investment quota.
Try setting up a small amount in the installment investment quota.

I think even just that is fine.

What is important is not to start only after you have understood everything perfectly.

Start small and learn while you continue.

Since I started using NISA, my perspective on money has changed a little.

Instead of just spending my salary,
I learned the feeling of putting my money to work little by little.

Investing can be scary.
But not knowing anything and doing nothing is also scary in a different way.

So, let's start with just 100 yen.

I think it's worth taking a small step today for your future self.