Twenties are great time. We are exploring financial freedom and taking responsibility for our own life. Somewhat it is also confusing because we are still trying to figure out our place under the sun at both professional and personal levels.
When we got our first job and all we want to do is spend our salary on parties, gifts and dinners. But one thing is very important for the later stability in life is to start investing the money at an early age. In our 20s, saving and investing money are the two last things that we probably have in our minds.
Firstly, we have to take advantage of our youth, is the number of years we have left to grow cash. Collect and combine your money like never before by starting now at small level and see your cash expand in future.
Second is to save more, you may feel that you are giving up on parties, dinners, gifts right now but saving now is far easier than in future because of the lesser demand and responsibility we have in our 20’s as compared to the future.
Third is to think of long term perspective, where you start to save and invest your money and don’t be impatient to take it out the second you see it making some progress. Reinvest it in some little riskier ventures because they tend to give the largest pay offs. This is the best time to make this type of strategies as we have a high risk avidity that will probably disappear as we get older. I suggest to take more aggressive approach for the investment and manage your money more hopelessly because the greater the risk, the greater the reward. As far as investment of money is concerned the best way is to invest it in mutual funds.
At a personal level also we can or I say we should do some investments like:
1, Self education – For including every professional qualification, one must add 5-7% additional to his or her income per year. Get yourself trained on latest things or stuffs , that makes you always valuable to any employer.
2, New experiences- We all have a long life ahead. So strive new experiences belligerently which helps in learning alot about life and yourself. Go on a adventure, you will be this young ever again. Go on a physical trip, take risk.
3. Lastly I just want to mentioned that from this age only we should start giving back to others. Give to your college, school, town or any cause that attracts you or your are passionate about. Just learn to give!