Simple Ways To Start Investing At An Early Age & Build A Secure Future

When it comes to finances, Indian millennials are facing unique challenges. This generation is forced to find creative ways to achieve goals such as buying a house, planning a family and saving for retirement. Amid COVID-19 pandemic, Indians across the country have also realised the impact financial health can have on their well-being.

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But are Indian millennial aware of the necessary financial instruments? When we think of investment the first that comes to mid for most of us is stock markets and the let alone charts and numbers, the mere word scares some into not wanting to learn anything about how it really works.

Investments are important because in today¡¯s world, just earning money is not enough. You work hard for the money you earn. But that may not be adequate for you to lead a comfortable lifestyle or fulfill your dreams and goals Invest money in your bank account smartly will get you good returns out of it.

The keys to successful investing are to hold a mix of assets (stocks, bonds, and cash) and to diversify or spread your money across different investments by buying the stock of different companies spanning different industries. As is the case for saving for retirement, compounding interest will help grow your invested money more quickly, and the sooner you start, the better off you¡¯ll be.

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Most people are initially hesitant when starting to invest. But it is very important to face our fears early so we're financially secure later. Knowledge is an essential asset when you're investing. Understanding how and where to invest, doing proper homework can help alleviate investor fear.

You can also reduce anxiety by becoming more familiar with the economy, various businesses, and government influences on the market. And of course, thanks to the Internet there¡¯s really no dearth of information. It¡¯s all about wrapping your head around a few concepts and helping your money grow for a more secure future.

Keep in mind, saving and investing are like two sides of a coin. While saving is about setting money aside, investing is about growth, and essentially, the key to financial freedom.

If you are still apprehensive about taking the first few steps about starting your journey towards investments, here are a few simple tips that will help you get a kick-start:

1. Early bird advantage

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Investing, as with anything in life, benefits from an early start. In investing, slow and steady is good. Planning early and often for retirement will empower you to control every stage of life that could be quite exciting, if done right.

2. Savings, a thumb rule

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Your investment strategy depends on your saving goals, how much money you need to reach them and your time horizon. If you¡¯ve never been a saver, you can start by putting away just Rs 700 per week. That may not seem like a lot, but over the course of a year it will grow. Start with small amounts of money, and then increase as you get more comfortable with the process. It may be a matter of deciding not to go to McDonald¡¯s or passing on the movies, and putting that money into the cookie instead. Saving for a rainy day has also grown into another major priority after what all of us have experienced in 2020.

3. Set aside a realistic amount to invest money

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A common investment goal is a retirement. As a general rule of thumb, you want to aim to invest a total of 10% to 15% of your income each year for retirement ¡ª your employer match counts toward that goal. T== For other investing goals, consider time horizon and the amount you need and go on to break the amount down into monthly or weekly investments.

4. Feeling lost? Don't worry, we have Robo advisors

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Robo-advisors are digital platforms that provide automated, algorithm-driven financial planning services with little to no human supervision. They offer easy account setup, robust goal planning, account services, portfolio management, and security features, attentive customer service, comprehensive education, and low fees. According to the Financial express, Robo advisory today is gaining momentum considering its unbiasedness and its capability of predictive analysis for effective financial planning

5. Health and life covers

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Life and health insurance typically are not supposed to be considered as investments. However, both are very important and must be considered as one of the priority money move to be made before turning hitting your 30s and it's aboslutely essential to understand how they work and ways in which they benefit you.

In today¡¯s world, a faster pace of life, high-stress levels and lack of physical exercise have given rise to numerous lifestyle diseases. Investing some money in a health insurance cover will help you tide over rising healthcare costs and easily funding any future treatments.

6. Learning Lessons

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The COVID-19 pandemic is the best experience realise the importance of having an emergency fund. Probably happened for the first time in our lives wherein the whole economy had stopped. It's a good idea to think of scenarios like job loss, pay cuts and some such and give priority to investments to power through crisis.

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