Investing In Your 20's and 30's
Tips for people in their 20’s and 30’s who may want to start investing.
The best time to learn investment strategies is in your 20’s and 30’s. Starting early is key to building a good and successful investment portfolio. Whether you are a collage graduate, gainfully employed or own your own business at an early age, you should begin thinking of where and how to invest your money.
Here's some tips for investing money in your 20’s and 30’s.
Taking Risk
Risk taking is very important if you want to build wealth. Wealth usually comes through uncertainty, the traditional way of doing things only makes you comfortable. Many investors find that a modest amount of risk in their portfolio is an acceptable way to increase the potential of achieving their financial goals. (Ken L, 2019)
Find Suitable Mentor
Finding a mentor suitable for your investment goal is very significant. Investing is very challenging and requires you to make some difficult choices. Sometimes, you may need advice from someone with more experience than you. (Wetzel, 2020) says that an investment mentor will be able to answer your questions about the details of investing.
Put Automation in Your Investment
Use automation investment, so you don’t have to start wasting time on how to load money into your investment account, how to receive your dividends etc... (Vinay, 2020) states that investment through robotic automation helps with accuracy, consistency, cost effectiveness, improved analytics and improved productivity.
Set Your Investment Goal
You should aim to set goals for what you want to achieve through investment. Whether it is to retire at age 50, live a lavish lifestyle in future, become a billionaire investor like Warren Buffet or any other pursuit of a particular goal. (Joshua, 2020) says that learning to set investment goals is one of the most important things you can do as a new investor, because it helps you keep track of where you have been, where you are currently and where you are going.
Check Charges Before Making Investments
Before you invest, you should take time to know all investment fees associated with your investment (Gordon, 2020). You should know charges such as investment management, investment advisory fee, transaction fee, annual account fee, front end load or back end load fees etc...
Other tips include:
- Find a broker that meets your needs.
- Study your portfolio.
- Always seek out information and more knowledge.
- Diversify your investment
- Make an investment plan
(John, 2018) says that investing early helps you to develop better spending habits.
In today’s uncertainty economy, it will not be good to use your young age to work the next 20-40 years, only to later realize you don’t have enough money for retirement. Also, if you have decided to invest your money while you are still young it would be wrong to lose all your money due to bad investment decisions. So it is equally as important to invest your money wisely.
