Why should I start investing in my 20s

Why should I start investing in my 20s

Investing when you are young makes you financially successful as early as possible. During this period you may enjoy spending more money than investing money. But the fact is that the earlier you start the better results you get.

Investing in your 20s gives jumpstart to achieve your financial goals.

·     

            Still  you didn’t start your investment?  

   Just start without any hesitation else you will regret later.

Usually this age category people have less amount for investment. But that doesn’t matter, even your lesser investment in your early stage create more impact in latter stage.

But don’t forget that investment comes with risk. Don’t invest blindly. Gather some financial knowledge before investing.

Lets discuss about advantage of an early investment and also about some the basic things one should do before investing..

Set your investment goal

     To achieve something, first you should know what is to be achieved. Setting your goal is most important thing. It will show you the direction of your success. Don’t start investment without having any investment goals. Setting the goal helps to stay motivated in your investment.

Select the type of investment

     There are several types of investment in which you can make money. Each type of investment offers different level of risk and reward. Investors should consider each type of investment and you should choose which one suits you to achieve your goals. Some of the famous types of investment are

• ·        Real estate
• ·        Gold
• ·        Stock market
• ·        Bonds
• ·        Mutual funds
• ·        ETF

Make your own plan and stick to it

        After choosing the type of investment , you should create your plan to accomplish to goal. Goal without plan is just a wish.
 
        Some of the points u should keep in mind while creating your plan. They are

• ·        Always look for a long term
• ·        Your comfort zone in taking risk
• ·        Follow consistency
• ·        Diversify your investment

Learn consistently

     Learning is an essential thing when it comes to an investment. Learning gives you great knowledge and about investment. It keeps you updated. It gives you new perspective in investment. All big investors are keep updating their knowledge through consistent learning.

Always have an Emergency fund

     All investors should keep some emergency fund for backup. It will be helpful when some unexpected things happened.

How much should I save?

It completely depends upon the person, but make sure you have minimum three months of your salary or savings.

Also read: Why should i invest?

Have patience, Be positive

     Last but not least, have patience. Investors should keep in mind that prices is not same all the time also you cannot stop correction in valuation. Don’t react to the temporary panic. Don’t watch your portfolio daily that will create stress and fear. Have patience and be positive.

Take advantage by start investing now and soon you will be financially successful.

Happy investing