Why You Should Start Investing When You're In Your Early 20s!
Achieve financial freedom with a small SIP.
If you are unable to make money with money, you will work until you leave this world.
So, my simple question is to you, is your money working for you? If not, you are walking the wrong way.
A few days back, I watched Parnajal Kamra and Sandeep Maheshwari's seminar on the "Sandeep Maheshwari" YouTube channel. Pranjal Kamra is a financial expert who believes in quality investing.
Sandeep Maheshwari asked his audiences, "How many people are investing in the stock market? Please raise your hands." Among the thousands of people, only a few raised their hands. And almost the remaining 99% don't invest in equities or mutual funds.
They keep their money in saving accounts because they think the stock market is a scam. And those who are investing in equities and mutual funds; are investing blindly in penny stocks. That is a too horrible thing.
And When it comes to India, we have made a negative mindset toward financial markets. Don't worry! Today I will tell you; why you should start investing in your early 20s.
- Learning Opportunities: "The more you learn, the more you earn." If you start your journey from today, you will get a huge opportunity to skill up yourself. Investing isn't a game but not rocket science. You have to learn with a trial and error method. Famous psychologists said that we learn through trial and error. So, don't worry about losing money; if you don't lose, you won't gain. Start today. "The most important investment you can invest in yourself."
- The bigger the risk, the greater the reward: "Risk Nahi to ask nhi" ( No risk, no love). A 20-years-old person can take more risks than a 40 years old person. As you are in your 20s, you have not too stressed about your family and life. Because still, your parents are supporting you. So, why you aren't taking the risk?
- Time is money: The stock market is the game of compounding. The longer you hold, the more wealth you will make. You have to let your money work for you. So, if you start in your early 20, you will get more time to hold your equities. According to 12% interest rules, if you start your journey in your 20s with a monthly SIP of Rs.10,000, then at your retirement age of 40, you will get Rs.1cr. That's not a win-win situation?
- Inflation: My father told me that when he was in 8th, he bought 40kg rice for Rs.3. After listening, my reaction was like this "oh my G-O-D!" Today you should have to pay at least Rs.20 for 1kg of rice. And that's how inflation stole our hard-earned money. There is no way to bit inflation without investment. But why not FD? Why only equities? FD can give you an average 6% annual return where the average inflation rate of India is 6%. It means you can't generate wealth with FD, although you can balance inflation. And saving account gives you only 3% annual interest, whereas mutual funds or equities can give you an average 12% return. That means after cutting the 6% inflation, your wealth is growing by 6% annually. So, why do you keep money in a saving account or FD? Start now, take risks. Believe me, one day you will win. And that one day will be your day one.
Tiny Changes, Remarkable Results.
I didn’t think that one day I could get an opportunity to write for Coffe Times. But I have read Yana Bostongirl's articles on Coffee Times, and I really like her easy-peasy writing.
Thanks Coffee Times for giving me an opportunity to write on this remarkable publication.
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