As a young adult who is in their twenties, you must be managing a hundred tasks on a daily basis on your own. These tasks include your studies, curricular activities, following your passion, enjoying the twenties and ah the most crucial one: worrying about your future almost a thousand times in a day. Well, where there are a few things which will take its own time to accomplish no matter how much you worry about it, like your studies but there is one thing which we can help you with, by sharing some knowledge with you about how to save and invest in your twenties.
Investing in the twenties is the best financial advice one can give, because investing correctly in your young life help you in “n” number of ways. Let’s start with how to start saving: we all know saving in college life is a bit tough considering there is no earning and a long list of spending’s but the good point is we don’t need a large amount of money for further investment. Saving money on a weekly and monthly basis by cutting that extra cappuccino and leaving those extra pair of shoes for the sake of fashion can collect you enough to invest in different resources. After saving the next question that arises is how and where to invest. The market has many options for investing like share market, mutual funds, cryptocurrency etc. The best and the most risk-free investment can be done through mutual funds. You can invest a small amount of money on monthly basis and get larger returns in a few years. The mutual funds take money from different organizations and platforms and are invested by a fund manager in the market and the fund manager makes sure you get larger returns. There are different schemes for mutual funds or investments with different interest rates per year. Interest rate is the rate you get on your investment after a year, example: 1000 rupees every month means 12 * 1000 = 12000 rupees and suppose it has interest rate return for 15% that means 1800 extra money in a year, although it doesn’t sound like a big return it is better when done for longer period of time. As stated above investment done in the initial years of life is really helpful in the later years it keeps you in discipline because you have to take some money out of your monthly budget, it gives you higher returns in 10-20 years, it is a very safe and secure investment for your later life, the money you invest is spent on the market which helps in the creation of good and services and which subsequently increases the economy of the country.
India is going through a really tough time in this pandemic the GDP rate has fallen the unemployment rate has risen, people investing in the market will help the country to flourish once again. However, investing in markets can be a little addictive and there are many fraud agencies too. Thus it is good to make sure of where you are investing and is safe. Always calculate your risks before making any financial move. And Investing doesn’t mean you won’t have to work, it is just an investment you make for the betterment of your future. Talk to your teachers, elders, banks, seniors etc educate yourself on these markets and make the best of your youth. Best of luck!
Written by: Ms Saba Sayyed, BA (Hons) Economics, Department of Economics, Faculty of Behavioural and Social Science (FBSS), Manav Rachna International Institute of Research and Studies (MRIIRS), Faridabad.
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