young investors

Since young people are the main contributors to the Gross Domestic Product (GDP), they make a big difference in the economy. All the greatest concern is focused on the young population. Compared to the past, today people have more financial potential and independence and it is all due to the strong increase in the tertiary sector. Nowadays spending a few dollars on coffee or shopping has become a casual activity that was very rare some time ago. It is all due to changes in lifestyle and the adoption of Western culture. Today’s young people hardly think about ‘saving’ for the future. It is necessary to focus on the inability to save even though there is not enough income.

There are just a few things we need to understand and minor changes we need to make to instill the habit of investing to close the gap between income and expenses. One must know the sum of money earned in the form of salary and the ways in which this income is spent. Now what is salary? It is the amount workers take home after tax and EPF contributions are deducted from gross income. This balance is also called net salary. Therefore, to save it is necessary to deduct the expenses from the salary.

Analyzing goals-
Goals are basically the personally set standards that one wants to achieve in order to reach the goal. These are our milestones that can help you make the right decisions. Goals can be set for different time periods, for example:
a) For one or two years, called short-term goals. They require immediate attention.
b) Five or seven years, called medium-term goals. They give us time to wait and analyze things between the investment period and the return period.
c) Ten or fifteen years, called long-term goals. These are intended for retirement.

Choose a suitable investment plan-
Investment plan means channeling your money in the most efficient method. Since several plans are available in the market, but only the right plan can earn benefits in the future and for that, expert advice is highly appreciable. After selecting an appropriate plan, start your investment by considering retirement because a small amount invested today can make your future bright.

Investment planning is not a one-time phenomenon, but must be received and readjusted according to the present need and trend for investment to be successful. Therefore, it is time for the youth of our country to learn about the best investment options and their benefits for them in the long term. Furthermore, since the young generation is the representative of the present and future economic condition of the country, it must be driven by the right motive and perspective.

1. Investment: a thoughtful task Making an investment is not an easy task, which requires a careful analysis of its advantages and disadvantages. You must know the purpose and necessity of using your hard earned income in the most profitable enterprise. Don’t be swayed by what your friends, neighbors or family members advise you to invest in because everyone has their own needs. In addition to realizing your need, you must also be aware of the risk associated with the investment plan. As it is said that the higher the risk, the higher the chances of return, so in order to earn more profit you need to make a careful decision about your ability to take risks. Let’s consider a situation where we want to buy a bungalow in the next seven or eight years, so that traditional investment method would not be efficient, instead we have to invest in stocks or mutual funds to get an extra edge.

2. Get insurance: Financial goals can only be met when you live a healthy and secure life. You should not get a term plan that has more coverage and lasts up to at least 75 years. It should also increase with the increase in income. In case of job change where insurance facilities are not available increasing coverage becomes essential. At any stage of life, you can suffer from health problems, so you should try to get the best facilities and the most efficient and reliable term plan. Investing in health or life insurance not only protects you but also your family from unpredictable circumstances. The young generation must establish an emergency fund that will benefit them in the long term. Therefore, young people are not so young that they do not know how to increase their income or obtain better returns. They are responsible for their own expenses and with other demands or commitments on their paycheck it becomes more important to do systematic investment planning at an early age to ensure life after retirement.

Therefore, it is essential to invest in better and profitable plans to reduce the risk of losing money. Also for some people, investing is a means of growth, as it keeps pace with inflation. By calculating your ROI, you can get a better idea of ​​how well your investment is planned.

ROI = Earnings/Investment Costs

Since investing is not an easy task and requires the help of an expert, for that you have to pay the fees to them, but with your efforts and research you can minimize it. You even have to pay taxes on the investments made. So considering all the pros and cons of investing at a young age, one can make provisions for the ins and outs of funds. It won’t always be successful, but then you learn from mistakes and experiences.

Making investments as soon as possible has an additional advantage and that is to spend time because if you lose your site, you have time to make up for the loss. It is advisable not to use your short-term money for investment purposes because you would not like to lock up your money during the time of need. Investing at the right time and in the right plan is your ladder to get rich.

CONCLUSION

Young investors should invest in stocks because it benefits them to meet their long-term goals. Also, they should not ignore the risks associated with it. It’s best to start a SIP in a mutual fund scheme if you don’t want to invest directly in stocks.