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18 Feb 2021

How To Invest When You Are In Your 20’s?

Nisha Ramesh

The twenties are a golden period of everyone’s lives. It is in the twenties that you discover who you are in life. You may determine your career, find true love and define yourself. It also brings financial freedom along. It is in the twenties that you will earn your first big salary. 

As glorious as it is, it is the age that determines your wealth for the rest of your life. As you start earning, you suddenly have so much money in your hands, and you tend to spend more.

But, if you understand the importance of investing early and begin now, you can effortlessly create good wealth for your future. 

Why Should You Invest Early?

The word investing may sound overwhelming for young people, but it is the only path to a healthy financial future. There are several reasons why you should start investing now.


  • It helps you gain more experience in money management.
  • It enables you to grow your corpus.
  • Your goals and needs can be met.

But there is a primary and fundamental reason why investing early is essential – Power of Compounding.

You may not be a stranger to this term, but most of us have forgotten its importance. With more time by your side, the Power of Compounding works magic on your investment. 

Suppose you invest some money now at a reasonable rate of return, your money can double and multiply itself in the next few decades. Even the most negligible money put into an investment can make a significant difference to your wealth in the future. 

Invest In Crypto With Just Rs.100

A 20 Someone’s Guide to Investing 

Once you understand the importance of investing, the next step is to put that understanding to action. This guide may help you create a strategy of investment for the next few years and beyond. 

1. Pay Off Debts

The first step to take in your financial planning is to plan and pay off all your debts. Student loans are a significant investment hurdle for most youngsters. And few others may have other personal loans and credit card debts. 

Debt gnaws away on your Cash Flow. If you are earning ₹20,000 and have to pay off ₹8,000 towards loans, you are actually only earning ₹12,000. 

In a perfect world:

There would be no debt, but our world isn’t perfect. So if you cannot pay off all your debts, you will have to find a way to balance your debt and investments. Reduce your debt further along and increase your assets to enable the power of compounding to grow your money. 

2. Start Small

When we say investment, a large sum of money is what comes to mind. Studies show that more than 40% of the millennials don’t invest because they think they do not make enough money. 

But the truth is there is nothing such as ‘enough money to invest’. Even a rupee put aside today can grow multiple folds over time with the help of compounding.

You need not have a massive sum of money to invest. You can always start small and add to it in the future. 

3. Stay Consistent

Consistency is the key to building wealth. Even if you invest just a few hundreds every month, make sure you do it regularly without fail. When you keep adding to your wealth, it can grow enormously over time. 

If you think you do not have the time to regularly make such investments, you can opt for Systematic Investment Plans (SIP). These plans will automatically deduct money from your account on the set date and put it into the chosen investment. 

4. Understand Asset Allocation

Asset allocation means spreading your investment into different asset classes to reduce risk. People often tend to think that there are only a few classes of assets one can invest in. But if you look further, there are many new classes of stable assets you can invest in. 

There is no harm in starting with investing in one asset. But over time, it is essential to spread your money on various assets of different nature to reduce your risk. 

5. Face risk

Risk is often misunderstood as something terrible. It is nothing but the deviation of the price of an asset from its average price. It would help if you understood that risk is directly proportional to returns. 


Young people have time on their side; taking a risk can only increase their chances of generating higher returns. As time goes by, the level of commitment will increase, and your risk tolerance will decrease.

This may be an excellent time to take full advantage of risk and earn some good money. 

6. Invest in Alternate Assets

Most people are under the misconception that any asset beyond the traditional investments such as stocks, bonds and deposits are a hoax.

While investing in traditional assets is not a bad idea, it is also good to consider investing in alternate assets as a hedge against market downfalls. Alternate assets include gold, cryptocurrencies, real estate etc. 

Cryptocurrencies are a new asset class which have given millionfold returns to its early investors but carries a degree of risk. Since youngsters have more time and fewer commitments, cryptos can be the right alternative investment choice. 

7. Keep Learning

Learning how to manage money and invest in your 20’s is not a one time process. Even after absorbing a lot of knowledge, you may still be fuzzy about how to invest as you grow older. 

Continually educating yourself on finances and investment strategies can help you stay on par with the changing world. 

There are many money management and personal finance knowledge repositories available online. Kuberverse is one such blog which aims to educate you more simply. Follow us for more knowledge and ideas regarding investing.

The Takeaway

Investing in your 20’s can be quite challenging because both learning and saving have to happen simultaneously. But once you get a hold of your finances, it becomes a part of your daily life. 

The earlier you get started, the more time you have to add to your wealth. 

Also, who said you need a lot of money to invest. Thanks to platforms like CoinSwitch Kuber you can now start investing with a minimum investment of ₹100. 

Enjoy and Invest!

[su_note] KuberVerse is an educational initiative. Anything expressed here directly or indirectly is not investment advice. And we ask you to do your own research before investing. [/su_note]


Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.


Nisha Ramesh

Content Writer

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