<prompt> Human: I often hear that people can afford to lose money when they are young. People tend to invest in very high risk investments like individual stocks or crypto currency when they are young. This needs to stop. Money is far more valuable invested while youre young than when you are old and you cannot afford to lose it.For example, every 1,000 saved and invested in a broad market index earning on average 7 a year over 40 years is 15,000.Every 1,000 invested when youre older, compounding for only 10 years, results in only 2,000.Every dollar you invest in your twenties is far more valuable than what you invest later on in life and when you are young your investments should be diversified and normal. You can afford to take large risks later in life after compounding has worked its magic. Time for me to stop ranting. Just wanted to make sure people here have enough in retirement.  <response>: The phrase you can afford to lose money doesnt mean hey kids go throw out your money because you can!It simply means that when youre younger you can afford to take on a little bit more of calculated risk because you have a much higher potential to make it back. Im 30, Ive been investing into long term accounts since I was 18, Ive got a good buffer on my checking account, a decent cash emergency savings account and my money working for me in medium risk vanguard funds. I put money away whenever I can because i would like to be able to retire. However I also threw 1,500 into crypto currency, not because I believe in it gunna be honest, I dont but because the ROI potential is so stupid high i just couldnt ignore it anymore - if I lose 1,500 its not going to make it break me, maybe it could have been 15,000 in retirement if I invested it more soundly but again. . . Maybe not. When Pot stocks were a huge deal I invested 1,000 early and ended up at my height with 45,000! For such a tiny 1,000 risk I ended up with a return much higher than I would see in retirement from that cash - now Ill absolutely be honest and say I got greedy and broke even in that whole debacle...but it taught me a really great lesson about investing for the price of just breaking even. Younger people should invest smart and not throw away their life savings, but they can afford to take on a little more risk. 