Earning from a very young age has its benefits, especially when you are 18 years old. You have enough time to make money and use that surplus for investment which gives a good start to life. Investing at a young age is considered fruitful. Age is never a barrier when it comes to investing. The sooner you invest, the better your chances and the richer you will be. Not only that, you learn the important meanings of financial independence and disciplined savings. It is a process of hard work and wise investing to protect your retirement as well as that of a teenager.
There has been a steady increase among Gen Zs in achieving financial independence at a very young age. For example, the vast majority of GenZ are using social media platforms to become content creators and influencers, and share their experiences with their audience which in turn helps to create Pennies, Or many are emerging as tech-savvy, while some join companies as interns or do some social events during their education period. These are some of the opportunities that GenZ uses to generate lucrative income. In this way investment interests have increased. stock and cryptocurrency There are a few investment pools that GenZ is looking for.
Generation Z (Gen Z) is known as the Millennials born from the late 1990s to the early 2010s.
Utung Malkan, Country Manager, Tiffin India, said, “Over the years, we have seen a growing trend among Gen Zs to achieve financial independence at the earliest, leading to an increase in investment interest. Inculcating healthy financial habits quickly. Developing brings benefits. Young individuals make a prime start in life.”
According to Malkan, timely investing, saving and budgeting can help young individuals pursue ambitious goals while simultaneously protecting their finances and becoming financially independent.
Three important steps to financial planning:
In Malkan’s opinion, there are three important elements one needs to focus on in planning one’s investments as a first time investor.
1. The initial step is to understand the power of compounding and the magic of your investment portfolio. Compounding is the process in which asset earnings from capital gains or interest are reinvested to generate additional earnings over time. Such reinvestment yields higher returns in the long run.
2. The second most important step in the investment process is to understand the risk appetite. Risk taking ability Simply put, the amount of risk you are willing to accept while investing is the amount. For example, an investment option in which a
High loss/high-profit ref-off will be treated as a “high risk” investment.
Malkan said, “One must always keep in mind that the pursuit of instant gratification and high returns may not always be the best.
Investment plan in the grand scheme of things. It is always advisable to invest in stable long term return schemes for sustained wealth.”
3. Lastly, it is important and imperative for first time investors to diversify their investment portfolio as much as possible. Diversification is one of the core principles of risk management and yet is most often overlooked by first time investors. It is important for individuals to start with a diversified portfolio to stay on the path of improving their financial wellbeing.
How to invest:
“Diversification is a simple concept – don’t “put all your eggs in one basket”, but spread your money across multiple securities to reduce risk. A truly diversified portfolio can be diversified across asset classes, sectors, sectors and individual securities. Must go,” said Malkan.
Highlighting some investment options, Malkan said, “There are many ways to diversify one’s portfolio, such as investing in
Exchange Traded Funds (ETFs), a type of deposit investment security that operates like mutual funds and another option is to invest in mutual funds.
He finally concluded, “All in all, it is important that young individuals manage their personal finances to plan, budget, and invest their money, keeping in mind the 3 essential principles of investing in order to achieve financial independence. Take control and safety early in life.”
catch all business News, market news, today’s fresh news events and breaking news Updates on Live Mint. download mint news app To get daily market updates.