INVESTING IN YOUR 20S.
Your 20s are a crucial stage when you probably have more control over your cash flow than you will later.Your 20s are also a time when you can afford to invest aggresively and take on a little more risk in order to earn better returns.Your 20s are a crucial stage when you probably have more control over your cash flow than you will later when you have kids and college plans kicking.there are some of the ways you can use these golden decade years to set yourself up for decadesto come.
STEP 1:Leverage the years.
You have it before but when you are 20s, time is truly your friend.The power of compounding can help your cash grow in a way that it never will again because right now you have got decades on your side, and responsibilities are not as many as when you have already started a family therefore creating room for alot of investments forfuture use.
STEP 2:Save time.
You have got alot going on, but if you do not feel like an expert in the stock market,do not use it as an excuse to postpone investing.
The key really is simply to open an investing or retirement account and regularly transfer money in to it,preferably automatically from your paycheck so that you cannot forget.You can do this at the end of every month,and ensuring that you do not forget or get the money planned for other activities, saving at the end of every month is actually the best not only for investing but also security for any emergency.
The key really is simply to open an investing or retirement account and regularly transfer money in to it,preferably automatically from your paycheck so that you cannot forget.You can do this at the end of every month,and ensuring that you do not forget or get the money planned for other activities, saving at the end of every month is actually the best not only for investing but also security for any emergency.
STEP 3:Save more.
It might seem like a sacrifice to save 20% of your income right now,but think about it this way:By saving as much as you can while there are a fewer demands on your income compared to your 40s or 50s when you have kids in college, say you put yourself ahead.
Then, if you lose your job at some point or raising kids and running house means you temporarily have to save a little less you are not giving up as much ground.This are only some exceptions that can make you to save less but you just have to sacrifice for you to safely guard the future.
Then, if you lose your job at some point or raising kids and running house means you temporarily have to save a little less you are not giving up as much ground.This are only some exceptions that can make you to save less but you just have to sacrifice for you to safely guard the future.
STEP 4:Be aggresive.
Very few kenyans have their money in a money market or stable value fund.There is not much chance that those accounts will keep up with inflation, which makes them just slightly more useful than stashing the money in a freezer.
While putting your money into equities does entail ,more risk,it also provides you with more growth at a time of life when you need the growth nad can probably handle the risk.By being more conservative you risk losing out on market gains and jeopardizing your savings.
There are a plenty of examples of young people who are saving for retirement and they put it all in cash.that is not going to move the needle in your retirement account
While putting your money into equities does entail ,more risk,it also provides you with more growth at a time of life when you need the growth nad can probably handle the risk.By being more conservative you risk losing out on market gains and jeopardizing your savings.
There are a plenty of examples of young people who are saving for retirement and they put it all in cash.that is not going to move the needle in your retirement account
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