You know the saying – the best time to plant a tree was 25 years ago. The next-best time to do it is now. It is also the case for investing as well. Just a few years of a head start can often lead to hundreds, if not thousands of dollars more money by the time you retire.
Your 20s are a good time to start. You would not have too many expenses then. But be mindful to clear off any debts before you begin. It is very likely that you may have taken a student loan or have amassed quite a bit as credit-card debt. During this period, it’s best to start out by focusing on paying off debts.
Debts work just the opposite of investments, exponentially decreasing your wealth rather than exponentially growing it, so it’s a good idea to make getting debt-free your first and foremost goal. Once you have your debt under control, start researching the stock market and investing as much as you can. Take in as much information as you are able and start highlighting quality companies that you believe will grow in value over time.
It is always a good idea to invest as much as you are able, but if you start in your 20s investing as little as a few thousand dollars a year, you will be well on your way to preparing for retirement.