Jan 28
One thing that you must start doing in your 20s to become a wealthy/rich
By the time you discover the secret to wealth, it is too late to become one. So don’t miss the secret to wealth.
People of age 20 to 29 years are called in their 20s. The 20s is the best time. We are full of energy, have a lot of time but have very less or zero direction for life. We have a very less financial IQ. By the time we get financial understanding, it's too late to act upon. In this story, I am going to tell you one important thing that you never miss doing in your 20s.
That one thing that you start doing in your 20s (or even you can start it before your 20s) is investing your money.
I know you will say I don't have enough money while I am in my 20s, where can I get money to invest. I understand that in the 20s people do not have much money. But you can figure out some way to reduce your expenses, learn to live below your means and save some amount from your earnings or from your pocket money. So that you can invest it.
You will say,
Why should I take on so much struggle to invest in my 20s?
Don't I have a lifetime to start my investing?
The answer is NO.
If you delay your investment then you will lose on a very important ingredient that is capable of making you rich or wealthy. That ingredient is TIME.
The early you start your investing journey, the more you get time to compound your money.
Mr Warren Buffet is one of the most successful investors in America has started investing at age of 11, and his net worth is over $101.1 billion as of October 2021. He is considered one of the wealthiest people. The secret to his wealth is his early investing.
Let's see how compounding works better for more time duration with this example.
Mr X started investing at age of 25, and Mr Y started investing at age of 40. They both want a good return on their investment at age of their retirement i.e. at age of 60.
From the above table, you can see that in spite of investing less amount monthly, Mr X is getting more money than Mr Y, at age 60.
More time you will give to your investment to grow, the magic of compounding works better.
So start your investment journey as early as possible. If can start with a small amount to invest monthly. But be consistent in your investment and do increase investing amount by the passing time.
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Poonam Bhatt is an avid reader, blogger, and author of the book GOAL TO SUCCESS.
This article was originally written here. Hope you like to read it!
