Investing 101 for your 20s

When you’re in your 20s, saving and investing money are probably the last things on your mind. You’ve got your first job, and all you want to do is spend your salary on parties, gifts and dinners. But the secret to stability later in life is to start investing your money at an early age.

You may think that you’re not making enough to be investing a portion of your salary already, but these are the years in which you will make the most money by investing for the long-term. After all, small drops is what makes an ocean!

Here are some quick tips for choosing your investments:

1. Take advantage of your youth

When you’re young, the biggest advantage you have is the number of years you have left to grow your cash. Compound your money like never before by starting small now and watch your cash reserves widen in the future.

Think of it this way — investing just Rs.1000 a month from the age of 25 to 60 will give you around Rs.3.5 Crores while the same amount gets you Rs.58 Lakhs if you start investing it only by the age of 35. That’s just Rs.1000 a month, which is two drinks lesser with friends on a night out!

2. Save more

It may feel like you’re giving up on too many parties, dinners and gifts right now, but saving now when you have lesser demands than you will in the future (like your yearly foreign vacation or children’s college education!) is far easier.

This also means that at some point in the future, even if your income takes a hit, or you have to stop saving as much, you won’t lose this base fund you’ve already created.

3. Think Long Term

When you start to save and invest your money, don’t be eager to pull it out the second you see it making some progress. Re-invest this money in riskier ventures because they tend to have the largest pay-offs.
Your 20s are the best time for this strategy as you have a high risk appetite that will probably wane as you get older. Also, you have time on your side to absorb and learn from your mistakes. But let’s avoid that situation completely, by choosing to plan your investments with Upwardly!

4. Be aggressive

The greater the risk, the greater the reward. Take a more aggressive approach to your investments and manage your money more fiercely, after all these are the golden years for making investments! Figure out avenues where you will get the most profit and invest big in them so you get larger rewards.

Wish all of this was automated?

At Upwardly, we automate the entire investing process so that you spend your time doing what you like the most. Our algorithm based investing understands your aspirations and goals to automatically build your portfolio of funds. We manage your portfolio 24X7, 365 days so that you spend time doing what you love the most instead of worrying about your investment.

All of this wasn’t possible earlier but with the advance in technology and giga-bytes of data now accessible, we are able to build, automate and act with the click of a few buttons.

Make the best investment choices with Upwardly. Find out the most suited options for yourself HERE.

Check out the Top Mutual Funds of 2016 HERE and the best suited Mutual Funds with our Mutual Funds Explorer HERE.

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*All returns are indicative basis past performance. Actual performance can vary.*

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