Investing in your 20’s – Why it’s the best time to start

Investing.. you mean my pension? NO. I mean investing in other fields; stocks and shares, ETFs, index funds, cryptocurrency or property etc. The sooner you start investing in assets which can provide you passive income the better off financially you will be in the future.

The sooner you start the more time your investments have to compound and grow. The difference between this and your pension investments is that you can actually take it out before retirement age. Meaning you have full control over your assets, what you do with them and when you want to take profit. This is why investing in your 20’s or younger is the best time to start.


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What is compound interest? 

Compound interest is the addition of interest to the original sum of a deposit. Then reinvesting the interest made, rather than taking cash profit. In next next period that interest is earned and then added to the original sum which was deposited. Here is a great graphic which explains how Saving vs Investing could add up over time. 

Financial education isn’t something we are taught in schools. It’s typically something which is taught within the means of your family. Meaning sadly many people are not exposed to this type of education, unless they come from money. If you come from a working class family (like myself) investments wasn’t even a word used within our home. So this is something I’ve had to learn to myself and I have begun to actually bring it back into my family now.

Why it’s good to start investing in your 20’s 

Like I said before the sooner you start investing and allowing your investments interest to add on and compound each year the more money you will end up with. This diagram explains basically if you invested £1000 a year, showing the difference between starting early in your 20’s vs starting in your 30’s. Not that you shouldn’t start if you are older. Just starting as soon as you can will really benefit your total value of investments.

investing in 20's

My experience of investing in my 20’s

At the age of 23 I began to look into the stock market and looking at how I could invest some of my savings instead of them sitting in the bank decreasing in value each year. I stuck a chunk of my savings into 2 different stocks and it didn’t do too badly. But I still didn’t fully know what I was doing. 

Then I came across a company called Platinum University who teach about Financial independence and online businesses. I decided to get a membership with them and began to fully commit to learning about investments and how I can become finically independent. From them I’ve learnt how to create a financial portfolio which is divided into different sectors to keep it as diverse and as risk free as possible. 

Platinum University made sure to teach about risk and taught me the rules to follow for investing so I could make decisions for myself about where I put my money. I just simply had to follow the tutorials and decide which stocks and crypto currencies I wanted to buy. 

With these current investments I will look at partially selling in the future to help me purchase an investment property. Which is not a property I will be living in, it will be solely for renting. Which Platinum University also teach about, so it really does cover multiple ways to gain financial independence. 

How to start investing?

There are so many ways to learn this online nowadays but if you are a beginner like me I highly recommend a membership with Platinum University. As their tutorials are so easy to understand and follow. You also will have support along the way from the team, which I found so helpful when I felt stuck at all and any questions will be answered. You can literally have your first investment in place literally within a day. Their membership comes at a cost but it’s a small fee to invest in some quality education.

If you use my referral link here you can use code HAYLEYC50 to get 50% off your first month. 

If you have any questions about investing or Platinum University please reach out to me on instagram @headforhorizons or email I’m more than happy to help or answer any questions. Let’s get you investing!

If you are also interested in other online incomes check out my Remote Work page for more tips to earn online.

 

About Hayley Crone

Hayley is a Digital Nomad who has spent the past few years turning her love for travel into a full time income & lifestyle. Head for Horizons is designed to give you the BEST tips to help you travel better and work online. CLICK HERE to read more about me and how I could help you!