Welcome to the complete guide to Personal Finance and Investing in your 20s.
On this page:
- What is Investing?
- Why investing is important?
- What is the right age to invest?
- How to start investing in your 20s?
What is Investing?
Usually investing a small part of your salary or pocket money in such a place, from where you can get more return than investment after some time, is called investment. it’s the most important aspect of financial independence and future plannings. Everyone needs a financial backup plan in their life to achieve life goals.
Types of Investing:
- Mutual fund
- Fixed deposits (FD)
- Retirement planning
- Real estate Investment
- Gold Investment
- Stocks
- Provident funds
- Bonds
Why investing is important?
The main goal of investing is to increase wealth and build wealth. Investing allows you to meet your short-term and long-term goals. It helps you to lead a comfortable life after retirement. Investing ensures that you are prepared for emergencies.
“Someone’s sitting in the shade today because someone planted a tree a long time ago.”
— Warren Buffett
Basically, if a person keeps saving even a small part from his earnings on a monthly or yearly basis, then this amount makes his future secure.
Investment is necessary for future needs. If you start investing at the right time, you can achieve many goals in your life:
- Good education for kids
- Own Home
- A life full of financial independence after retirement.
What is the right age to invest?
According to Zerodha, more than 70% of their new customers are first-time investors and are under the age of 30.
It doesn’t matter if you are in your 20s or 30s, no one can define the right age to invest, the thing you focus on is “Start investing as soon as possible”.
If you’re in your 20s, this is the perfect time to focus on investing. Because investing at the age of 20s has many advantages. First, you’re single and don’t have a lot of expenses compared to those who are above their 30s and mingle. Second, your whole life is in front of you and investing is all about time and patience.
How to start investing in your 20s?
So far you have learned what investment is and why it is important. But the next question is where to start investing?
According to Warren Buffett, don’t put your eggs in one basket, it means don’t invest in one way, try and explore different ways of investing.
Start with stock market:
Our first suggestion for investing for teenagers is the stock market.
Many people think that the stock market is risky but I will suggest and prove that the stock market gives you huge returns.
For example: If you see Tata consumer products share price and 5 days chart activity. You can see big fluctuations, in other words, short term investment in stocks is totally equivalent to gambling.

But what if you look at these charts for the last 10 years. As the chart shows, the stock price continues to rise year after year.

So the next question that comes to your mind is how to invest in stocks? Can I invest all my money in one go with a large amount?
Use Monthly Investment Plan to invest in stocks It is very easy to invest a small amount in a month. Use this type of flow to invest in stocks for next five years.
Year | Investment Amount |
---|---|
2022 | 500/- Rupees Per Month |
2023 | 600/- Rupees Per Month |
2024 | 700/- Rupees Per Month |
2025 | 800/- Rupees Per Month |
2026 | 900/- Rupees Per Month |
In stocks, this type of frequency actually gives a minimum 10% return at the end of 5 years but the returns can be higher if the stock is popular.

Lastly, the last question is how to find a trustworthy brokerage company? The amazing thing in this age is that everything is digital. Anything can be found at your fingertips.
Here are five apps that we recommend and are easy-to-use for investing in your 20s.
- Upstox
- Zerodha Kite
- Angel Broking app
- Sherkhan
- Groww
We recommend Upstox for features and usability.
In Conclusion
Finally, all the information we have written in this article has been thoroughly researched. I hope the details help you to start investing. If we have missed something in this article please comment below.