Most individuals are lucky enough to get an ideal job in their early 20s just after passing out of college education. As soon as you get the job you should think about saving a portion of your salary. One part of your salary you can keep for your monthly expenses, the second part you can keep to fulfill your desires, and the last one to save the Funds for emergencies or to manage your future financial accomplishments.

Yes, it is true as soon as we enter corporate life we all want to access life luxury, trips, and other fundamental living but along with this, you should also focus on saving. You have at least 30 years of Investment and create a strong base of wealth.

Many big capitalists have started focusing on their savings and investment from the initial years of their job.

To attract people towards the saving and investment options many apps have developed. In the early 20s, most people had no idea about the investment process and its functionality. Many people know investment instruments but can’t differentiate the best one!

Get financial investment guidance for your 20s

To make your life simpler than ever you can take the guidance from here.

The first thing you should do is to divide the ideal amount or share, for savings, expenses, and other things. Maintain consistency to build a strong bar.

Before selecting an investment option you should check if any loan or debt or credit balance needs to be cleared off. If it is available you need to deal with high interest.

Do you have any life and health insurance?

Is there any emergency fund base to manage the critical life scenarios?

You can invest a share of your salary in learning productive skills that can upgrade your career goals and graph.

If you want to increase your wealth, invest your amount in Mutual Funds, Tax-saving accounts, Debt, and other investments.

Tax-saving accounts 

You can release yourself from tax by investing in PPF, Fixed Deposits, RDs, ELSS, NSS, etc. All of the great options to manage your finances in the early days of employment that come with great return benefits. 

Currency/ Metal investment 

You can purchase gold ornaments or coins, cryptocurrency(bitcoins), stock market, etc. All of them have different risks and produce different returns or financial benefits over time.

Debt

You are not a retail investor so Debt can be the way to become financially stronger before you turn 30. You can invest in any of the Debt mutual fund schemes that come with a tenure of less than 1 year, 1-3year. Less than 5year or more. Consider the risk, portfolio, and your ability to manage finance.

Mutual Funds

There are direct and indirect mutual fund options scalable to invest. To invest in direct mutual funds, a person should be proficient in analytical skills. Either you can invest in direct equity or mutual fund equity.

Based on your stock market skills, portfolio, and risk capacity you can invest in passive index funds or active funds.

Active funds contain high risk because here the manager analyzes the performance of stocks and chooses accordingly to access high returns.

Passive index funds have low risk and deliver high returns. You don’t have to spend much time picking the stocks.

Before selecting an option of a mutual fund, decide the amount of investment. Also, separate a share of your salary for insurance and emergency financial crisis, enroll yourself in any activity class or skills worth for your life.

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