3 Words Every 20-Year Old Must Know While Investing

There’s nothing more demarcating than the decade which starts when one turns 20. Most of you would agree that 20s acts as the pivot of anyone’s life! Also, there is no running away from the fact that this period can make or break your financial success.

Things that you do during this span will invariably influence the future. It stands true for finances as well. This makes it very important to cultivate a sound financial habit, and the apt time to do so is the when-you-turn-20 decade! Well, better late than never; even if you have seen through your 20s, you still do this exercise.


Although it is a cliché, it still makes the point that one should have a predefined budget. It might seem that you are being restricted to use your hard-earned money in a certain way. However, it only helps you keep a tab on your spending pattern. The budget makes your money go, where you want it to go. This is the time to have a budget for you and to save a portion of the income. This brings us to the next point – Save!


What most people do is that they earn, they spend it, and the residual is their savings. It should be the other way round, earn – keep aside your savings – spend! Borrowing from the idea of budgeting, make sure you have a separated the savings from your income. Try to minimise your expenses too. That way, you will be able to add more to the savings kept aside initially. Keep building upon your savings. However, will savings suffice your future needs? The answer is plain no! and hence, the third habit you want to develop is to invest.


Mere savings are not going to help you in the long term. Have a broad outlook, invest your savings. Mobilising your money helps your money to grow. There are many financial instruments to invest in. You probably can start with investing in mutual funds, or you can start by SIPs. In fact, SIPs work in lines with your savings (which is the second habit learned). Gradually you can explore equity market, derivatives, etc. Consult a financial planner, have an investment plan.

Keep following up on these habits, wishing you a happy decade.