5 reasons to start invest in your 20s

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5 reasons to start invest in your 20s

5 reasons to start invest in your 20s
Most young people think it's better to get into investing after they are older, have more stable capital, have graduated from university, and have a job. In fact, twenty is a great age to start learning how to invest, and here are five reasons why:


Young people have the very thing they need most in investing. Time and patience. Being able to invest money, make a profit after the investment and put it back into business is a great way to multiply your capital and create wealth.

Based on a 5% interest rate, one $10,000 investment you make in 20 years will grow to $70000. The same $10,000 you invested at age 30 can turn into $43,000 by age 60, but if you invest that $10,000 40 years, it will only bring you $6,000 by age 60, leaving you with capital of $26,000. Money has a way of accumulating itself if it works long enough.

Greater risk.

The youthfulness of a man who has no debt of any kind behind him, the need to pay for his child's education may help his case. More risk always gives you the opportunity to learn faster and find the right path in your investment activity. 


A young person has time to even out the losses from their investment mistakes, have the opportunity to be flexible with their portfolio, try interesting tactics and learn from their successes and failures. Learning is always easier with practice. 

Young people's technical knowledge

Your media knowledge and ability to work with the latest gadgets, apps and tools can be a great way to apply new techniques and technology to your investing. The Internet and online businesses are growing rapidly, media platforms are targeting young people and your knowledge in these areas opens up more investment opportunities for you.

Human capital

All of your future salaries depend on your current human capital. Investing in yourself through training, obtaining a degree, gaining manufacturing experience or learning the latest IT skills is a great investment in your future, your retirement and the opportunity to invest a larger budget. The younger you are, the easier it will be for you to learn something new, so develop yourself, take the most knowledge you can carry and start investing!

To summarize:

Investing isn't just an option for those who want to save in retirement. Most investments, such as dividend stocks, provide you with income over the life of the investment.
If you're in your twenties, you really have an undeniable advantage over people who are waiting to start investing. You have the time, the ability and willingness to take high risk, the opportunity to practice and minimize the damage of failed attempts, the opportunity to work with new technology and to get an education in parallel.
Was this article helpful? Yes -0 No -066 Posted by: 👨 Jonathon E. Perry
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