Investment should be started at an early age. New Job seekers in their early 20s are at the perfect juncture in their life to start investing. While a new job rejuvenates a youthʼs life and lifestyle, investment adds a touch of pragmatism to this lifestyle. As soon as you start earning for the first time, fulfilling the material aspirations that you always dreamt of is quite normal. However, early investment doesnʼt demand a lot out of your paycheck.
Several reasons make early youth the perfect time to start investing. The primary advantage is the abundance of time that you have on your side. More time, which could be three to four decades till your retirement, means that you have a higher risk appetite. Even if the market goes through a slump, you will have years to recover from it. Secondly, when you start early, the power of compounding will have a massive role to play. Even if you invest small, the regular contributions will accumulate to huge proportions over the long duration. Besides, your spending habits will also improve when you plan your finances early in your life. This habit is something that will stick with you for the rest of your life, and with handsome returns along the way.