How to start invest in your 20's

 If you are in your 20's , sure that just finished education or started earning. This is the right phase of your life to start investing, This could be useful for your future or fulfilling your needs.

Steps to investing

   The first and foremost is the emergency fund - Anyone can't we even know what's gonna happen, so it's better to build an emergency fund that is equal to your 6 month salary that you are earning now or atleast have a 2 months of your income.

   Pay off debt - If you are paying debt then it should be better to solve that in a short period of time, because it takes money and we stuck in a trap for long days.

   Start putting money into retirement - If working on a 9 to 5 job or any other, start investing for your future. It will be very helpful, at that time ,you definitely need money.

Financial words to know

   Stock - It is a share in a company that you can invest. For example, take a company Nestle, if you invest in that company stock thenyou will be a part of the Nestle company (i.e)one of the partly owners. If the company grows then you stock also slowly grows and get the benefit from that

    Stock market - Collection of companies and exchanges when you can buy and sell stocks of whatever you need.

    Bond - Loan to a company or the government that pays to invest a fixed rate of return over a specific period of time frame. This consider as a low risk investment.

Top reasons for investing

    Start a retirement fund - If someone starts investing at the age of 20's think about the time period and the amount have in a hand when the age of retirement or whenever it is needed. Little allocation of some money every month will help you in the future.

    Your money will grown when you are sleeping as well.

    To reach our financial goals, investing is the best way to keep a reach in financial wealth.

Investing in 20's

    Power of compounding - If investing in 100 rs then we must know how this 100 will grow in 10years? 20 years? 30years? etc.

    Saving in 25 vs 45 - If you start saving in your 20's then it would become a high amount when you are in 45, then slowly we can save money. But if you are saving money from your 40's then we need to put double the effort and work until your retirement.

    There are so many opportunities to save in this period, even though we have the family responsibilities but not that much, so the 1000rs itself that definitely pay off.

    Time is in our favour - In this age, we can take that much risk even when the market goes down. You can invest your money in index funds itself, that will give you more than enough equity exposure.

    Savings rate is more important than your return.

     Have financial goals - Our financial growth will be as aggressive  as the longest we postpone any lifestyle upgrades.

Mistakes while investing your money

    The first and foremost is when you are investing your money in something kindly find the difference between the assets and liabilities. Assets - it puts money into your pocket. Liabilities - it gets money out of your pocket.

    Invest your 100% amount in the stocks - If you are a beginner to the trading world then go step by step then only you can able to understand the trading world, the up's and down's.

    Don't put all the eggs in the single basket - that means if you are investing in stocks don't put all your money in a single stock. Diversify your values. Definitely you won't lose.

Don't invest for a short period, invest for a long period of time that will pay off.

Understand and learn about trading then invest. It's not a delay starting from today, be the millionaire or the person who solves your needs and better future. Happy investing!!!