Your early 20s are a time for growth. New friends, new jobs, new towns. But with so many firsts, mistakes are only natural. Financial mistakes, however, can be costly. Chartered accountant and tax consultant Yash Shah is here to help you.
1. Start getting to know the concept of investing as soon as possible the moment you reach your 20s. Remember that passive income is as important and much sweeter than active income. The goal should be financial independence which means that you have the freedom to utilise the time in the best way that you deem fit to be used.
2. Equities are the best way to create large long-term wealth.
3. Invest in yourself first till at least you are 30. No asset class can match the returns generated by investing in your own self.
4. Try to follow delayed gratification. Avoid the urge of spending on luxurious depreciable assets just for the sake of showmanship and society.
5. Remember the story of marshmallows, if you have 10 marshmallows, it is important to periodically eat them, or else they get stale, investments and wealth generation is not the only objective of life. To enjoy the wealth created is equally important.
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