How to Invest in Your 20s (Simple guides to investing)
Growing up, we are dependent on our parents and as we grow up, they taught us the basics of life but as we grow, we start to make decisions and these decisions either make or break us. The early twenties of a person’s life are a point where two things either happen, it is a time to either invest in the future or investing in fashion, cars, or holiday. The 20s is the beginning of a human’s adult hood and investing at an early age gives people an edge in the financial race. How do you invest at your first early adult years?
Never Invest in a Business you do not Understand
While investing at an early age, you need to understand that you are to invest in businesses that you understand. Never invest in things you do not understand, never invest in businesses that are complex and not understandable because you want to put your money into a business. If you are also investing in the stock market, you need to invest like you are buying into a company and not just buying into a good stock based on market. Investing in a business you understand and invest for a long time.
Use Compound Interest while investing
As youths in your early 20s, it is true that there will be inflow of money from several places including parents, friends, pocket money, and many more. This point is where you must increase and improve your financial investment. You must add up to your investment and make it grow.
Be Ready to Make Mistake
One thing you should know is that you are learning how to invest, and you are meant to make mistakes. If you are in your early 20s, making mistakes should be part of the game so you should be willing to make some very good one.
Buy into Businesses you understand
Not everyone loves to build new businesses, so many people find this disturbing while some find it boring, in this case, the best you can do is buy into a business. You can either buy an already established business, buy shares in already existing businesses and if you are someone who loves the real estate world, you could invest in REITs. REITs are companies that manage real estates and sell shares to individual who are interested in investing in stocks of real estate.
@tipu curate
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This age comes with temptations to live a flashy lifestyle but with self control and proper understanding of the market, one can decide to make proper investment and enjoy the benefits at the long run.
Self control is one habit that will help us, thanks for reading my publication.
@ajewa at the age of 20 we are at learning face we first need to understand what is good and what is bad for us then only we can try for investment. We need to get proper knowledge first.
I agree with you that way investment errors can be avoided.
I agree with you
That way investment errors
Can be avoided.
- ajewa
I'm a bot. I detect haiku.
The age of 20 is an ideal to start a career in the financial world. In fact, in developed countries this is the common denominator. Being young, you have enough time to study the different markets that present you with investment opportunities and take the necessary steps to increase your finances.
I believe so,it is a young age when we can carry out proper research, thanks for reading my publication.
With age comes wisdom and I think that during the early twenties it is difficult to have a more complete thought about it.
Nice text anyway, @ajewa.
You're very right in what you say, but the reality is that most people in their 20s are only thinking about having fun and spending money on unnecessary things, of course it's something to do with education, I'm not saying it's wrong to have fun because it's obviously part of life too, but as long as you set priorities too. It would be great if we all looked at the future much more closely and worried about our old age but I think that's asking too much.
I don't think it is asking for too much although we can never plan enough but we have to plan in our own little way.
Starting a business is not for everyone, it boils down to understanding ourselves and what we can perfectly do.
Very well said, for some it will be to invest or buy into a business and not starting it from scratch.