When you are in your 20s, you are bound to make a lot of mistakes and learn from them as well. However, the benefit of making smart investment decisions in your 20s is that even if your long-term goals are not decided, good investments ensure that you have the money to follow your dreams later.
In your 20s, you have either just completed your studies or might be looking at pursuing further studies. In either case, most definitely you would have student loans to pay off. Instead of thinking about where to spend or invest your earnings, your first step would be to identify ways in which you can pay off your debts at the earliest. One way to do that is to set an automated debit from your account every month for the loan repayment. Curb your credit card bills by removing unnecessary expenses which can thus facilitate the reduction in bill payments.
Savings account is the most basic investment option you can begin with. You can earn steady interest rates beginning from 4% with a regular deposit in your savings account. Fixed deposits available for tenures of 7 days to 10 years also earn you steady returns on the invested amount at maturity. You can also choose from various types of mutual funds, bonds, stocks, and real estate investments to diversify your portfolio.
Although you might not have the habit of maintaining a budget plan, 20s is the right time to begin. Splurging on discretionary items is the last thing you should be doing when you have just started earning. Making a budget will ensure that you are able to balance your income and expenses efficiently, while saving simultaneously.
Once you have a steady income source, it makes sense to start an emergency fund with monthly savings in it. While there is a good possibility that you might not have to use this fund, it can definitely be a financial support in times of a medical emergency or when you suddenly encounter a financial crisis.
Your 20s acquaint you to endless opportunities wherein you can take huge risks. At the same time, it is also the best age to begin financial planning for a secure future.
Digital Wallet with free Virtual card and UPI which can be used to send/receive money, mobile/DTH recharge, pay bills and much moreRead More