Young adults want to become rich as early as possible. They start saving from the first pay cheque to fulfil their desires such as buying an expensive car, vacationing at the best of places, living among the who’s who, etc.
Saving is, indeed, a good habit and can bring financial freedom and discipline. But is your saving growing enough money to meet your desires in time? How much interest are you getting on your savings?
Here comes the importance of investing. Saving and investing are two different aspects and one has to give significant time to the latter for achieving financial goals.
And 20s is an opportune time. In your 20s, you don’t have much responsibilities, expenses and needs.
“Saving and investing gives you greater flexibility. When you have spare money, you can take a break in case you don’t like your job, fund your higher education and see the magic of compounding work,” said Vishal Dhawan, Founder & CEO, Plan Ahead Wealth Advisors.
Investing in 20s is an intelligent decision to make in order to keep your future safe and secure.
“Control your lifestyle expenses. You can surely become rich when you touch 40s,” said Dhawan.
So, the question is where to invest. Investment can be tricky and you must do your homework well. In this backdrop, ETFs are an ideal option for investment among others such as mutual funds, balanced funds, real estate, etc.
“While searching for investment options, keep in mind your ability to take risks, see the tax implications, for how long you are committing your money into a specific investment and identify a good mix,” said Dhawan.
“In your 20s, you can invest and put in more money when your salary increases with time. The money invested grows and so does the interest. You should reap the benefits of compounding,” said Dhawan.
The trick to become rich, indeed, lies in investing and taking risks. Automate your investment portfolio. Bring in discipline and watch your money grow.
So, watch out how much you save and invest.