3 Words Every 20-Year Old Must Know While Investing

No image Priyanka Sharma

Last Updated: 13th December 2022 - 01:25 am

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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 isno 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 stilldo this exercise.

3 words


Althoughit is a cliché, it still makes the point that one should have a predefinedbudget. It might seem that you are being restricted to use your hard-earnedmoney in a certain way. However, it only helps you keep a tab on your spendingpattern. The budget makes your money go, where you want it to go. This is thetime to have a budget for you and to save a portion of the income. This bringsus to the next point – Save!


Whatmost 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! Borrowingfrom the idea of budgeting, make sure you have a separated the savings fromyour income. Try to minimise your expenses too. That way, you will be able toadd more to the savings kept aside initially. Keep building upon your savings.However, will savings suffice your future needs? The answer is plain no! andhence, the third habit you want to develop is to invest.


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

Keepfollowing up on these habits, wishing you a happy decade.

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