3 Tips for Investing in Your 20s
As a 20 year old with an interest in investing, I've found that it can be pretty intimidating. Knowing what to do and how to do it is a daunting task when you're younger, but with all the resourcing available to us, I've compiled some tips on how to get started investing in your 20s!
The biggest thing that I've learned is to always invest early.
If you open a Roth IRA and start maxing it out every year starting from when you're 20 vs 25, the difference will actually shock you.
Even if you can't invest a lot to begin with, start small! We've got time on our side.
Invest and forget.
While the thought of day trading is something that I've falling pretty deep into, it's not necessary the easiest and most profitable way to make money off of your money.
There's a difference between short and long term investments, and let's just say that for tax purposes, you want to hold your investment for longer than one year.
This is why I divide up how I invest!
Most of my investments are what I like to call "invest and forget" investments. I still keep some cash in my accounts for when I want to experiment with a day or swing trade, but most of the time, I opt for long term investments.
Play it safe long term, and experiment with the short term if that interests you.
Similar to investing and forgetting, playing it safe long term is usually the way to go if you're not looking to make big money really quick.
I've read a few books about determining what type of investor you are, and all I can say is that I definitely will always choose to play it safe!
Figure out what type of investor you are, and go from there. When in doubt, play it safe long term, and play around with extra cash if you want to trade on a more regular basis.
I hope this helped inspire you to get involved in investing! I'm always open to learn, so if you have any tips, please share them with me! Have a great week everyone!