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However, with the right mindset, habits, and strategies, you can lay the foundation for long-term financial prosperity.
There are many ways to achieve smaller milestones that can build your wealth, and the sooner you get going, the better. Remember that no investment is ever too small or insignificant.
Here are some ways to build wealth in your 20s.
It takes time and effort to learn how to invest, but it's a whole new way of looking at life and is essential to building wealth. Consider these options to increase your knowledge:
When you first embark on your investment journey, it’s important to start early, start small and not risk too much of your money.
Start with completing a risk profile so you can understand what investment strategies can work for you. You can then start making investments according to your risk profile and investment objective.
Putting all your money into one investment could be risky, which is why many people choose to invest in different asset classes and industries. This can minimise risk and maximise returns in the long term.
Taking a long-term view is essential to achieving your financial goals. Don't try to time the market or chase short-term gains. Instead, focus on building a diversified portfolio of high-quality investments and hold them for a long time.
Financial goals may include saving for a down payment on a house, paying off student loans, starting a business, or saving for retirement. Write down your goals and prioritise them based on their importance.
Read more about planning for your goals.
Budgeting is essential to achieving your financial goals. Start by tracking your income and expenses, and identify areas where you can reduce your spending. Allocate a portion of your income towards your financial goals and make sure to stick to your budget.
It helps to choose the best investment vehicles for your circumstances. Consider your investment horizon, risk tolerance, and investment goals when choosing investments. It helps to choose the best investment vehicles for your circumstances.
Remember that monitoring your investments is important to ensure they continue to meet your investment goals. Review your portfolio regularly and rebalance it when necessary to maintain your desired asset allocation.
The more you pay attention to saving and investing in your 20s, the better you’ll get at building your wealth.
For better results, you can also make some lifestyle changes. Start saving early, live within your means, avoid unnecessary debt, invest in yourself, and take advantage of any employee benefits you may have. These can help you stick to your financial goals and grow your wealth.
When you’re focused on your future, it’s easier to direct your existing resources towards it. While it takes time to accumulate wealth, with these steps it’s certainly possible and within your reach.
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This article is brought to you by The Hongkong and Shanghai Banking Corporation Limited, India (HSBC India). All information provided is for informational purposes only and is not intended to be construed as advice or an offer for any product or service. HSBC India is not liable for any informational errors, incompleteness, delays, or for any actions taken in reliance on information contained herein. All products are subject to suitability and availability.
Be cautious against the allure of high returns in a short amount of time, as this can lead to trouble. Investments or opportunities promising unrealistically high returns can be indicators of investment scams, get-rich-quick schemes, or other fraudulent activities. It's essential for individuals to thoroughly research and understand the risk, and be wary of any offers that sound too good to be true.
Grievance Redressal
In case of any complaint related to the securities market, you may first approach the concerned intermediary or company. The concerned intermediary or company shall facilitate your complaint redressal. In case the grievance remains unresolved, you may approach the concerned Stock, Exchange or Depository against your stockbroker or listed company. If you are still not satisfied with the redressal, you may lodge a complaint with SEBI through a web based centralised grievance redressal called SCORES (SEBI Complaints Redress System).
