Your early 20’s is the perfect time to start investing. For one, you would have entered the earning age and therefore would be investing your own earnings, instead of your allowance from parents or your pocket money.
There are many reasons you should start early.
- Time is the most valuable asset that you can have on your side when it comes to investing. The power of compounding can reach its maximum potential when the money has been invested for longer durations.
- Starting early would give you an opportunity to try different things and learn. Your mistakes won’t set you back and you will have ample time to rectify them. The later you begin, the lesser the scope for error. It is not just money that compounds, but knowledge also. Keep that in mind while investing.
- Starting early would also give you breathing time in later part of your life. If you invest aggressively in early years, then you can start earning passive income in the later years, which means you will have a choice whether to reinvest the earnings or to just keep the investments at the same level.
Don’t be hung up on making this decision. Start investing already.