Investment Ideas for individuals in their 20’s.💡 First steps!👣
1️⃣ Learn the basics : It is a true but sad fact that important subjects such as money, investing and personal finance are not taught a lot in school. So, we as individuals have to put in the time and effort to learn these super important and essential financial skills on our own.
📍Key areas of personal finance for individual’s in their 20’s
- Budgeting 📒
- Saving💰
- Investment Products 📈
- Taxes 🧾
2️⃣ Start Investing early : Do not delay the process of starting to invest. Time is of the essence here and every minute counts. Make a plan today. Don’t focus only on the planning process alone, take actions too.
- An emergency fund can be the first step towards investing. A fund that covers expenses for 9 to 12 months. 🏦
- Start with SIP’s in a Mutual Fund by investing amounts as low as Rs. 500.💵
3️⃣ Set Goals and create a Financial Plan :
Outline your Money Goals
- Immediate Money : Food, rent, utility, medicals🥪🏥💊📑
- Mid term Money : Home down payments, travel, wedding 🏠✈️💒
- Long term Money : Retirement funds, future children’s education etc 👵🏻🧓🏻
Create a Financial Plan
- Investment Tenure (How long to invest) 🕐
- Investment Amount (How much to invest) 🤔
- Investment Products (Where to invest)🧐
4️⃣ Invest in Equities (But learn more about it first)
For long term goals, a fixed deposit might not suffice. So, investing in equities is the way to go. Although there’s a significant risk involved but learning and making calculated risks is probably easier in your 20’s than in your 50’s.
5️⃣ Don’t shy away from other investment alternatives
It is a good practise to diversify your investments. So, as the saying goes - don’t put all your🥚 in one 🧺. Invest in real estate, precious metals, commodities, bonds etc too.
Hope this article helps fellow young adults gain a decent perspective on how to start investing! 🙂