A Short Guide for Young Investors to Set themselves On the Right Financial Trajectory

You might have heard people saying that one should start investing

early in life to maximize your returns. A common question that usually arises here

is, what is the best time to start with your investment journey?

Amongst people of all different ages, it is usually the young

adults in their 20s who may feel unsure about the need for financial planning.

While the 20s are the time when most of us have a carefree lifestyle and an

apparent lack of responsibilities, it is also the right time for you to investment

planning. If you are in your 20s, here’s how you can set yourself up for the

future.

If you are ready to pave the foundation of the lifestyle you wish for, now is the right time to start investing.

Here are a few crucial pointers you should keep in mind:

1. Invest

Early to Utilize the Power of Compounding

When people are in their 20’s, they think they have much time to

plan for their financial life, believing they would live for the next fifty-sixty

years at least. They feel it would make no difference if they start putting off

some money and invest it in the right way. Waiting for the right time; however,

it can make a massive difference in the investment returns one would get.

Consider this example –

You start investing a few thousand rupees per month at the age of

24 and continue until you are at the age of 60. If you manage to get a five or

six percent return during that period, you will have a few crore rupees waiting

to welcome you in the retirement age. Now, let’s say you wait till you become

30 to start investing. By the age of 60, you will receive only half the returns

as compared to the other choice. The first ten years of your investment can

make wonders happen in your life with the power of compounding.

It is no wonder why the great Albert Einstein remarked about compound

interest as the eighth wonder of the world.

2. Think

of Investing as a Part of Bigger Goals in Life

People are not wrong when they think that investing is not the

answer to all their problems. However, investing early does help in beginning

the wealth creation journey. One of the best ways to look at investment planning is to associate it with broader financial plans in life.

You are advised to consider diverse aspects of your life while starting to

invest your money in different assets.

For instance – after you get married and have children, you will need more money to cater to the related expenses. You will have to think about your children’s future, your retirement, and much else. If you are not financially secure in any phase of life, you will be most likely to regret not investing in the earlier time. To be at the safe side, you can invest in Max Life Savings Advantage Plan to achieve both the short-term and long-term goals in life.

So, it would help if you start to think about bigger goals in life

and plan investing your money accordingly. At this age, you need not worry

about the next rising stock, but focus on building fundamental investing habits

to meet the basic investment objectives at least.

3. Consider

Smart Investing a Resource for a Good Life

Most of the people in their 20’s think of investment plans as just

a solution to their problems. However, they are much more than that. Smart

investments are resources you can use to create the life of your dreams. Keep

in mind that your choices of spending, saving, and investing your money matters

a lot.

So, learn to become a careful money-saver and a smart investor.

Start investing early in some of the best investment plans to save tax while

also creating wealth to do more of the things that you want in life.

Final

Thoughts

Investing works best when you start doing it early in life. There

is an upper limit to everyone’s income. It is how you manage to save money and

invest it smartly that will let your money grow well, thus giving you a better

future to live and enjoy.