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Four Ways To Start Investing In Your 20s.

It’s widely considered that your twenties are the best time to start considering investments for your future financial stability. It might be considered boring to start investing at a younger age but the benefits could be helpful to getting yourself ahead.

Even though more 20-30 year olds are already saving for the future, on average, the figure is still less than £1000. Unfortunately, many people in their twenties don’t know how to start their investments.

Here are four simple ways to start investing in your twenties:

1 .  Be more assertive

It is commonly believed that investments in stocks and shares  do not provide a fixed interest return, which means they are high risk investments. Even though this is not fully wrong, these opportunities also provide a higher potential on return.

This additional growth and risk is perfect when you’re in your twenties, so you could benefit from the financial increase whilst also being able to afford to run the risks.

If you’re holding back from these types of opportunities, you could be missing out on huge market and stock growth. This means that your savings  could become a better source of finances in the long run, so  i It’s important to consider the benefits long term.

2 . Take advantage of the years.

Saving your money for the future is always a great idea. Were you ever told to save up for a rainy day? Most likely yes and for a good reason. The earlier you start saving, the better.

A simple example is if you were to start a new savings account, with an annual target of £1,200 pounds – that is £100 every month and that investment would look minor in the short term. However, when you look at the bigger picture, if you start this when you are 20, by the time you are 60 you will have saved £48,000 before any interest benefits. You might be thinking that these long term investments could be delayed a year but it’s important to remember the interest benefits from that added £1,200 in the account, each year you delay the process.

3 . Don’t be afraid to save more.

As previously mentioned, a savings account can offer great benefits for you in the long term. This was only saving £100 a month, but if you’re able to save more than just £100, you will have less to worry about in  future.

You might not think of it as something useful as you will be thinking ‘’there is still a long time for me to reach 60, I do not need to save that much’’- but right now is the perfect time for you to invest into your savings as there are fewer demands on your income compared to when you reach your 30’s or 40’s. This age usually means you have a family, which brings more financial obligations and stress.

In addition, ensure that the money you save is in a reliable financial institution, otherwise you could encounter the issues like the 2008 financial crisis, meaning a rush to withdraw all your savings or poor investments to protect your payments.

4 . Save your time.

There are many cases when it is completely normal for your best benefit to take your time before investing. However, this is not to be used as an excuse to delay investing.

You can start looking for an index fund to put your money in and mirror the stock market for you to learn the ropes. This tactic will prepare you for future investments of the stock market, so you can be assured that your investments will be  profitable.