As a fresh start in your investments journey, one needs to truly learn where to park their money at the right place and at the right time. Grasp the Finest knowledge on how to do investments in your 20s and attain the lifelong learner benchmark.
Your Financial future will be decided on the decisions you make early on in life. The sooner you start, the better your financial decisions will be.
This underrated subject would pretty sure change the course of your life.
Allot a portion of your earnings or savings in your 20’s, no matter how small to either stock/bonds, mutual funds, buying cryptos (risky avenue yet a good place to start with a proper knowledge), etc.
Life-long learners are also those individuals who start their financial journey at an early age and become nearly investments tycoons with a stress-free life and income statements.
When in the ’20s, many students indulge in bad habits and spend their or their parent’s money on useless status-symbol items. Sometimes it may be fine, but one needs to know the situation when there would be no money in your pockets left and cry later on. They should start investing very little from the beginning right from college, to create your investments to grow exponentially.
So the question arises from nowhere –
How to begin and become a investment guru in no time?
First, you need to become aware of the investments plans and decisions you take in your life.
Take baby steps in every investment and keep it as easy as possible.
When you come fresh out of your college with either salary or internships to deal in the real world, I would recommend having patience.
Many people become eagerly excited to invest their money somewhere but without analyzing anything, you should not deep into it.
Watch the market scenario and create an investment plan to start with peace in mind.
These steps seem too easy and boring and but trust me, the easier steps you follow in life, the easier & happy your life will be.
Do not trust and blindly follow complications investments as well as in daily life. That may lead to unhappiness & destruction in your life.
Personal finance is all about how easily you can hold money without losing it and at the same time grow it exponentially.
That’s why I say, first, have patience and do comprehensive research on the decisions you make to create a good life.
Start to create investment habits early in your late teens and 20’s, so that you are reward with Zen peace and extra knowledge for life.
So, here is the realm of different investments options for young adults as well as life-long learners –
1. SIPs – Systematic Investment Planning (Best option to begin)
Most young adults either get pocket money from family or the paid internships.
So the best place to start will be with SIPs. When investing in the MF(Mutual funds), stocks, shares, bonds, etc, choose the SIP option.
Some portion of your monthly savings should be kept aside and SIP should be paid in a good company or Asset management company.
This is the easiest guide to SIP –
- Keep aside a portion of it
- Pay in small amounts for a big investment to happen.
2. Invest in Recurring Deposits
The RD is a special kind of investment offered by several banks with regular incomes ( it may be small salaries for young adults) to put in their fixed amount of money in a recurring deposit’s account. Through this, the person can earn interest as applicable as fixed deposits.
In simple terms –
- Fixed Deposits – One provides a fixed amount for a fixed time to earn interest as applicable.
- Recurring deposits – One provides small amounts for a fixed time to earn interest similar to fixed deposits (5-8.5%).
These deposits are best applicable to students who don’t have a large amount for fixed deposits to earn good interest.
Rather they deposit a small amount of money to the RD account for a period of around (6 months-10 years) to get a really good amount in your 20’s without ever worrying about money again.
3. Underrated education – Treat yourself to make better investments plans.
Do not deprive yourself of the thighs you love the most. For the sake of savings and investing and creating a better future, we tend to forget to treat ourselves.
If you don’t treat yourself and spend wisely when you are young, you will regret it in the later stages of your life. I bet you.
So, everything is fine (rather excellent) if done wisely and smartly.
To take your financial level to the next level, you have to start investing in your 20s – This simple and repeated statement has tremendous powers and will truly change your life if understood early (The later you release, the later you get out of financial burden). Even if you are late, Dont worry, it’s is never too late to explore the ocean of investment journey.
Life is like a game you need to play smartly and happily to win it. In addition, keep the finances in control and never let others take away the money from you (since everyone tries to).
If you want to go for a dinner night, do adventurous stuff, spend on clothes, cars, home and whatever maybe you like. Just do it, it provides you to think and stay in peace (specially calmness for the investments and maintain the finances for your life). I promise you.
4. Try to Exponentially grow your income.
With a regular monthly salary, one cannot achieve its Financial Independence journey. To grow your investment portfolio, you have to increase your income with time.
The age of the ’20s and ’30s are most efficient in terms of physical and mental state. These age groups have enough stamina and drive to work along with the tough tasks and make investment strategies.
So do not waste that energy on other worthless pleasures for your mind. You can enjoy once in a while but stay focused on creating investments ideas and growing yourself silently.
Along with your job, Have other income sources and streams.
Invest in the schemes that grow your money rapidly and safely such as stocks(risk involved), dividend plans, government bonds, buy gold, silver, investing in banks, investments in shares, liquid funds(good option), etc.
You can also do different small businesses such as taking tuition for kids, making online stores (Shopify), freelancing, become a consultant for any expertise, etc.
5. If you want to grow finance, invest in Liquid Funds
What are Liquid Funds-
Liquid Fund’s best use is for the people who want to park their funds for a short duration with almost no risk in their capital.
Liquid funds are perfect for the student who is not aware of these investments.
Investors try to do investments to save tax in the liquid funds & decrease the amount of stress for risking their capital.
This short-term investment is very popular among investors because of its low maturity period or tenure of almost 91 days (3 months) it.
Recommended for beginners and students who have less patience while not risking their money at a higher level.
Simple investment options yet can be very aggressive in terms of return. Liquid funds are also one of the safest mutual funds across the entire investment options. You should have any kind of liquid funds to invest in your investments portfolio.
6. Life & Health Insurance – Fundamental Right of every Person
Whether you are in your 20’s, the ’30s, or more, your life insurance investment should be prioritized over any other investments you make.
The sooner the better. Buy Term life insurance with a high lumpsum amount by paying a yearly premium of a small amount of money.
Your loved ones would enough capital to survive for life if they invest in fixed deposits with monthly payouts if any mishappening occurs to you.
Also, taking term life insurance in your 20’s will give you the benefit of paying a lower premium for insurance as you have started your survival (life) insurance. Take the advantage of this by starting early investments not just in the insurance rather in every aspect of your investment journey.
Buy Health Insurance for sure to secure yourself from unexpected diseases and deadly viruses. Especially in these hard times when the Covid is trying to hit every individual.
The recommendation will be to buy a high deductible policy or super-top-up policy for health insurance.
The high deductible policy is nothing but a health plan with lower premiums and much higher and easier deductible in comparison to the traditional methods through which we but Health plans.
This plan is for the consumers who have decent savings in their bank account and they can self-assured a fixed amount.
But after the self-assured amount, the health insurance plan (HDP) will provide a very high capital for a medical emergency in comparison to a simple health insurance plan.
Without health and term insurance, your life can be disastrous if any incident occurs. Please try to understand the depth and importance of health insurance and life insurance so that you reap the benefits before anyone else does it.
– Learn to begin with these steps in investments and naturally, you will understand how to manage the investments and maintain the investment portfolio.
Stay a healthy and abundant life!