When you are in your 20s, career is your main priority. You happen to be so focused on achieving your professional goals that financial security and investment plans tend to be a distant thought. Most in their 20s consider savings and investments as something that concern the middle-aged people, which is a very wrong notion. In fact, the earlier you start building a corpus fund, the better it is for achieving financial security. Won’t you like being financially secured in the latter half of your life?
Why should you build a corpus in your 20s?
The following reasons will provide you a sneak peek into the perks of investing early:
Power of compounding: This feature of reinvesting the Returns on Investment, earns you high returns over time. Though the earning may seems slightly low in the beginning, it will help you to accumulate huge wealth in the long run. Start investing early to witness the power of compounding.
Ability to deal with risks: Although investing in mutual funds or equities may earn you higher returns, they bear potential risk due to their dependence on market volatility. Young people in their 20s usually do not have a lot of responsibilities, which make it easier for them to deal with the risks involved in the investment. The risk appetite of a youngster is bigger than a married person with kids and debt. Use your risk appetite to build the desired corpus with your investments.
Higher retirement fund: When a person in their 20s starts planning for their retirement, it gives the person sufficient time to build a solid corpus to rely on in their retired life. Even an investment of a small sum would enable the youth to build a desired fund for retirement. A strong corpus fund will help you to lead a financially independent life even after you retire.
Zero debt: There are numerous schemes available in the market that enable people to avail loan both instantly and easily. Although it may seem feasible in the moment of need, such schemes are expensive and come with a huge burden of interests. If you begin to invest from an early age, you will not be required to take a loan to meet your financial needs. A solid financial plan and a regular investment discipline will ensure you a debt-free future.
Money management skills: We do understand that when a youngster lands the first job, the first thing they want to do with their income, is to splurge it. After covering their expenses, they would not be much interested to consider investing in a financial scheme. However, the habit of investing regularly from an early age is effective against unnecessary expenditure. Over the years, it will help young people like you to inculcate a sense of fiscal discipline and will also help you to manage your finances better.
Well-designed financial plans like Systematic Investment Plans will help you to accumulate a corpus through investment in various types of mutual funds and equities. We offer assistance to the youngsters by helping them in selecting the best financial plan for them.Follow Us: