8 BIG Reasons Why You Should Invest Your Money In Early Twenties!

Youth is the time when one wishes to remain carefree and enjoy life to the hilt.

But, it is also the time when sensible decisions related to life and making sound future plans can help to have a comfortable life later on.  In order to build lifelong wealth, one must start investing in early twenties only.

If you don’t invest in early years, you are missing out on opportunities to increase your financial worth in the later years of life. Money multiplies over the years, and more the number of years you put in, more the returns.

Here are 8 BIG reasons why you should invest your money in your early twenties!

1. You Seed Your Money At The Right Time

Investing your money in twenties can allow you to seed it for substantial number of years. Most investment vehicles, such as stocks, certificates of deposit, or bonds, offer returns on your money over the long term. This return allows your money to build, creating wealth over years, by the time you are ready to reap the returns.

2. Earn Higher Returns At A Young Age

In order to grow your money while you are still earning, you need to put it in a place where it can earn a high rate of return. The higher the rate of return, the more money you will make while sitting. Investment vehicles tend to offer the opportunity to earn higher rates of return than savings accounts. Therefore, if you wish to be a wealthy person, by the time you are ready to make a family, you must start investing money in early twenties.

3. Reach Your Financial Goals At The Appropriate Times

Early investing can help you reach big financial goals at just the right time, which is the prime of your life. If your money is earning a higher rate of return than a savings account, you will be earning more money both over the long term and within a faster period. This return on your investments can be used toward major financial goals, such as getting married, buying a home, buying a car, starting your own business, and starting a family.

4. Save On Your Tax Returns

Some investments like mutual funds etc., allow you to save on your taxes too. If you are in a job where your taxes are not paid by the company, you must invest your money in your early years, which can help you to save a big chunk on your taxes, without breaking the law. You can use that money in later years, to build something substantial for life.

5. Make Good Use of Company Investment Plans

Some companies offer to contribute equalled investments into employee investment plans. Especially for young investors to encourage financial planning in young minds. If the organisation you work for, have this kind of provision, you must make good use of it in the early twenties itself. So that you are ready to reap good profits, even if you plan a job shift.

6. You Can Start and Expand a Business At Early Stages In Life

Early investing must be an important part of business creation and expansion. If you have entrepreneurial bent, early investing will go a long way for you. Many big investors like to support young entrepreneurs who have a certain capital in hand, and contribute to the creation of new jobs and new products. They enjoy the process of creating and establishing new businesses and building them into successful entities that can provide them with a strong return on their investment.

7. Support Others At Right Age

If you have invested your money in the early years, you can help others do the same who are younger than you and need help to establish their ventures, by the time you reach a certain age. Many young investors are seen investing in people, whether they are business owners, artists, or manufacturers. These young and able investors feel good helping others achieve their goals. This way, you can not only build on your financial credits, but you can build on a happy life too.

8. You Can Save For Voluntary Retirements

If you are working you should be saving money for retirement. And if you start to save or invest at the right time, in early twenties that is, you can take sabbaticals from work, or early retirement, whenever you wish to. Put your retirement savings into a portfolio of investments, such as stocks, bonds, mutual funds, real estate, businesses, or precious metals. Then, at retirement age, you can live off funds earned from these investments.

So friends, these were some of the awesome benefits of saving and investing in your early twenties.

Hope this gives you a little insight and you make some sane decisions regarding your finances in your early twenties only.