Why You Should Start Investing in Your 20's

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You're 20 years old and wondering how you'll ever be able to save enough to retire in your old age. Why not start investing while you're young? Investing starts pretty early in life. You should be investing in your 20's. It doesn't have to be much, but every little bit counts. And every little bit helps to get you prepared for the future, whether it's striking off on your own or buying a home.

Let's be real, it will be too late once you get to retirement age. At that point, it's much harder to work up to the amount of money you need to retire comfortably. Even if you have a 401k through your employer, you're not contributing enough to your retirement account.

You need to take matters into your own hands and start investing for yourself. To start, here are a few things you should know about investing in your 20s:
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You get a bigger return on your investment when you invest early. If you invest $5,000 at age 20 and the market grows by 8 percent over the next 30 years, that investment becomes about $35,000! That's nearly five times as much as the original investment. Investing early has a major impact on your future earnings.

If you start investing in your 20s, you’ll have a much higher chance of retiring comfortably. It’s never too late to start, but the sooner you begin, the better off you’ll be. There are plenty of options when it comes to investing your money.

You can choose stocks, bonds, mutual funds, cryptocurrency, and more. Working with a financial advisor can help you figure out what investment is right for you and how to get started. Investing in your 20s is one of the smartest things you can do for your future self.

Why You Should Start Investing in Your 20's

Investing early gives you a huge advantage

Compound interest is one of the most powerful forces in the universe, and it can work for you if you start early enough.

You'll have more time to ride out the ups and downs

The longer you invest, the more likely you are to weather the storm when the markets take a dip. If you start investing in your 20s, you'll have plenty of time to ride out any downturns before retirement.

You can afford to take more risks

When you're young, you have time to recover from any losses you might experience. That's why it's often best to take a riskier approach when investing in your 20s. You can afford to lose some money without jeopardizing your future financial security.

Investing can help you reach your financial goals

Whether you're looking to save for retirement or a rainy day fund, investing can help you reach your financial goals quicker than if you simply saved your money in a savings account.

You can start small

Many people think they need a lot of money to get started in investing, but that's not necessarily true. There are plenty of investment strategies that can be implemented with a relatively small amount of capital.

Conclusion

There are a lot of reasons why you should start investing in your 20s. For one, you have a longer time horizon to take advantage of compounding returns. Additionally, you'll likely have fewer financial commitments and responsibilities, making it easier to take on investment risk.

But perhaps the most important reason to start investing in your 20s is that it sets you up for a lifetime of good financial habits. Investing early gives you a chance to build discipline and learn about personal finance. These are habits that will pay off for the rest of your life.

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28 comments
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Na who get money dey invest 😪

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lol true but funny.... i believe at the right time the money will come and we will be able to invest, it really can't be forced at all

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Certainly. It's good to be knowledge about investments still.

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I believe it too.... This is an insightful response. Thanks for taking the time to educate more. I appreciate. ❤️

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I can agree the earlier the better and 20's is somehow an acceptable age to start as the majority of us are entering the working class industry by that age. ( hopefully still single and doesn't have a child any accountability like a child supporting yet. )

I started investing at around 26/27 perhaps kinda late as I am in transition of having my own family. But for the young ones I would really suggest they start it at a young age.

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Yes, this is true. Investing at a young age when one doesn't have a lot of responsibility is a good start.

I apologize if you feel investing at 26/27 was late for you. The most important thing is that you started investing and that's better than someone who probably lives in abundance at that age and doesn't even think of making such moves. So, you are on the right track.... Keep moving forward.

Thanks so much for sharing your experience and your thoughts. I appreciate. 💜

Thanks

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Your posts be shaking my table every night. But I actually like love it. I like the fact that I am learning to be better.

For me, of all the things I can learn about, Finance is where I am most ignorant. But we learn everyday, right??

Now, I do not know the exact next step to take with this knowledge, but I do know I am now more conscious about them and should make better decisions in the future.

Thanks for sharing.

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Your posts be shaking my table every night. But I actually like love it. I like the fact that I am learning to be better.

Hahaha, I am sorry for always shaking your table. But I am glad it's getting you to think about your finances.

For me, of all the things I can learn about, Finance is where I am most ignorant. But we learn everyday, right??

Well, welcome to Hive, where you will have the exclusive opportunity to learn the game. And you'll be getting this as you log into your account everyday. If you dip your feet deeper, you'll realize that in a few years, you'll be knowledgeable about finance.

Now, I do not know the exact next step to take with this knowledge, but I do know I am now more conscious about them and should make better decisions in the future

That's the spirit.

Thanks for reading too. I appreciate you always coming around. ❤️

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where you will have the exclusive opportunity to learn the game.

Can't say it's any different with my experience.

Of course, in a few years I'll be much more knowledgeable.

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I realised this important lesson from my grandmother, the woman is in her 70s and still hustling! I don't want to live a life like that lol. So I do my research and invest the bag. There are more investment opportunities now than before so I spend a good time researching about them too.

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Oh my, glad to know you already have a life you do not want to live before you and you have decided to take actions that keeps youvfar away from it. This is a good mentality. And I am glad you are consciously taking this step. I wish you good luck with everything. ❤️

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Yes, I don't think anyone should live their life on default, you have to consciously choose your path and walk towards it. Thank you!

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I agree completely. Leaving life to fate is a bad move. Thanks too.

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Investment is the way to financial freedom, but there are some people that barely eat three square meals, such people can't invest and also there are some people whose income is not enough to cater for their responsibilities so they cant invest either...

But you are right , for those who have the means investment is the best way to be financially free ...

Love this post and will be curated by neoxian city and i would also be promoting it on listnerd for more engagement....

My mentor gave me three advice

stay out of debt

save money

invest in a business people demand from you.......

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Investment is the way to financial freedom, but there are some people that barely eat three square meals, such people can't invest and also there are some people whose income is not enough to cater for their responsibilities so they cant invest either...

I completely understand. This category of people would barely be able to invest because the money they are earning isn't even enough to cater for their needs. The best advice to give them would be to ask them to find other ways to increase their earning power. And that would put them on the right track to invest for their future.

But you are right , for those who have the means investment is the best way to be financially free ...

I am glad you agree.

Love this post and will be curated by neoxian city and i would also be promoting it on listnerd for more engagement....

Thank you so much for your support. I appreciate you. ❤️❤️

My mentor gave me three advice. Stay out of debt. Save money. invest in a business people demand from you.......

And here's a valuable advice. Right now, I am trying to get out of debt. And when I do, the next step will be saving, in between jumping on investment opportunities.... Of course after doing my due diligence.

Thank you so much for being here. I sincerely appreciate.

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Nice article and good advice. I started investing in my early 20s only because I landed an excellent job with equally advantageous benefits, one of which was a 401(k) savings plan. I was hesitant at first to place a weekly amount into the plan until other, long-time co-workers advised me of its potential benefits due to the company matching 100% up to a certain amount.

And the key was, as you say, you can start small. I did. When I read my monthly statements and was surprised at the growth, I increased my participation.

Then, only after I actually needed it five years later was I happy I took the plunge and enrolled in the savings plans. I didn't have to borrow a substantial amount from financial institutions, repaying with high interest rates. I borrowed from myself as withdrawals were allowed.

The best decision I ever made. I also advised my children to do the same once they finished college and were employed. So they have been investing since their 20s.

Thanks for sharing.

Take care.

Read from LN.

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Nice article and good advice.

Thank you.

I started investing in my early 20s only because I landed an excellent job with equally advantageous benefits, one of which was a 401(k) savings plan. I was hesitant at first to place a weekly amount into the plan until other, long-time co-workers advised me of its potential benefits due to the company matching 100% up to a certain amount.

Now, you started off on the right foot and that's enviable. I am glad you had good people around who gave you that valuable insights into the world of 401(k) and I am happy you took that advice.

I understand your hesitation, it's not easy to put money away like that... We all suffer from loss aversion. Even when the money is ours, we still have this feeling of losing.

But it's good that you moved past that hesitation and put those percentages away for your future. Well done. ❤️

And the key was, as you say, you can start small. I did. When I read my monthly statements and was surprised at the growth, I increased my participation.

Oh wow, you found the benefits outweighed everything else you would have thought of doing with the money... Nice one.

Then, only after I actually needed it five years later was I happy I took the plunge and enrolled in the savings plans. I didn't have to borrow a substantial amount from financial institutions, repaying with high interest rates. I borrowed from myself as withdrawals were allowed.

Gosh. This is amazing. I am so proud of you right now. 🥰🥰

The best decision I ever made. I also advised my children to do the same once they finished college and were employed. So they have been investing since their 20s

You are doing well. Soon, they too will see the benefits and will be glad they started early.

Thanks so much for being here, and sharing your thoughts and experiences with me.

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You're welcome.

!LUV
!LADY

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Thanks hivebuzz

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Nice article. It is good to invest as early is it feasible - the earlier the better.

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I am glad you agree. Thanks for reading. ❤️

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Some very salient points here. Wish i'd had that kind of advice when I was venturing out into the adult world. Back then it was all about living for the moment, spending money on things that, on looking back, I didn't really need.

Thanks for sharing
!CTP

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I am sorry about how your youth went. I do hope you made great changes going forward. 🥺

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