Investing in Early Twenties

Investing in Early Twenties makes a Huge Difference in the Wealth Later on…!!!

When it comes to retirement planning, most of the people think that, What’s hurry? I am in my 30s or 40s right now and there are still more years to retire so why to start investing early? But well, this is not true. One should start planning retirement from the day they start earning means in early twenties.

Most of the people in the world start making money in their twenties, few people start making money since their early twenties. So according to me, they should start investing in their early twenties.

Do you know that, Warren Buffet – The Legendary Investor had started investing when he was just 13 years old? And today he thinks that he was Late…!!!

Starting early is this much important. If you never save and invest your money, it will never work for you and the compound interest will never work in favour of you to make you rich. The more early you start, the more wealth you will accumulate over the time. People who are rich today have typically started regular savings and investing very early in their lives probably since their early twenties and that’s why the compound interest had worked more on their wealth to make them richer over the time.

Unfortunately, today’s youth prefers to spend all of the money they earn. Savings and Investing is the last priority. People go to their workplace to earn money and every month they receive a paycheck. And they pay all of their bills first and spend all of the money and they think that, if something will remain at the end of month, they will invest that money. But nothing remains at the end of the month for savings and investing.

While Rich people first invest their money from their monthly income. Every month when they receive a paycheck or any other form of Income, they first of all invest 15-20% of that money in the long term investments such as Stocks, bonds, gold, mutual funds or private businesses and they spend rest of the money behind their monthly household expenses.

This is known as “Pay Yourself First” Strategy.

So the Key of become very rich is – Start Investing in your Early Twenties…!!!!