In the world of a growing economy, disposable income, show-off and people with big dreams, many aspire to be rich and fulfil their materialistic goals. But, the truth is that you cannot accomplish all your goals with just the monthly salary. You need the right financial planning for that And you must start investing at a young age.
You may ask- why do I need to do financial planning?
The answer is very simple, to replicate your dreams into a reality.
Financial planning and analysis from a young age give you the time and appetite to take bigger risks and do various investment planning both for your short term and long term financial goals. It is like a well-maintained car, it will stay with you for a long.
Time is on your side
Starting young gives you an upper hand over others, you have more time to take risks and recover if something goes wrong. Ventures with a high volatile market yield more return on investment.
Long term financial planning early in life allows one to take more risks and see the magic of compounding which is referred to as “the eighth wonder of the world” by Nobel laureate Albert Einstein.
Compounding returns are very powerful and the earlier you start and the longer you let it stay, the more benefits you reap. But do not forget to take the right financial advice or proper research before investing.
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Better Financial Planning
Starting young makes you a better financial planner. You start understanding the need for financial planning and that makes you well prepared for the future.
A financially literate person develops a disciplined spending habit by focusing on increasing money and cutting down unnecessary expenses. You can start doing personal financial management where you can plan your current and future financial management goals, make a financial budget and monitor it every week (I do it every week)
This comes in handy in the future, as you have more capital which helps you to make better insightful decisions.
The internet era has brought the world at our fingertips. We have access to almost any information at the touch of a button. Youngsters practically thrive on the internet these days.
Tech-savvy individuals can study, do research and then plan the right investment at a young age. Financially educated humans usually don’t need a financial advisor to help them with the money.
They study the market and figure out the right investing options. Numerous online portals, YouTube videos, social media, and apps are available these days to help you to learn about mutual funds, the stock market, and other investing options.
Earning money is fundamental to investment and then to your retirement plans. Investing in your 20’s gives you adequate time to grow in your field. The discipline for continuous financial planning and analysis is a must.
Financial planning is a long term game and you need to have solid self-control and self-discipline for years if you want huge returns.
The millennials invest a lot in themselves through earning a degree, improving their current skills, which eventually helps them to earn higher wages. These can also be considered as one of the forms of investment.
Saving for the raining day is great but remember, not to put all the eggs in one basket. Investing smartly can ensure a safe and secure future.
Your investment plans should depend on your goals. So find the perfect plans and start investing at a young age.
Investing in short-term plans like Recurring Deposit, Fixed Deposit, Post Office Time Deposit, etc. and long term plans like Mutual Funds (SIP), Unit Linked Insurance Plans, National Pension Scheme, etc. will lead you to a prodigious future.