Investment Tips for Beginners: Start investing by earning but avoid these 5 mistakes or you will always end up empty pocket

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5 Investing Tips for Beginners: In the world of investing, it doesn’t matter how much you deposit. The timing of your deposit is very important. The longer you invest, the higher the returns. This is the reason why financial experts advise that the habit of investing should be inculcated from the very beginning. Investment should start immediately after graduation and start earning. No need to deposit only 10-20k every month. Whatever you earn, you should save a part of it for the future.

How to Get Out of Debt

CA Kanan Bahl, founder of Learn Personal Finance and Chartered Accountant, says that when young people are in their 20s, they are earning and taking on huge debt. Due to the lack of proper financial planning, the lives of these people are buried under the burden of debt. They start investing from scratch but due to debt, they are not able to get proper benefits. By the time all these things came to their attention, it was too late. In this article, experts talk about 5 mistakes they should not make at the beginning of their careers (Investment Tips for Beginners).

Buy insurance before investing

In addition to earning, buy insurance for yourself first. First buy health insurance for yourself and your family. Buy term insurance for you later. It is necessary to buy insurance before investing.

Avoid home loans at the start of your career

Salary is low at the beginning of the job. In such a situation, the city and the company keep changing to increase the salary. Don’t take on the burden of a home loan in your 20s. Staying in a rented house will not burden you financially. The house, place and even the city can be changed according to need and convenience.

Avoid buying luxury items on EMI

Youngsters are often seen buying luxury goods through credit cards or EMIs. They get trapped in the world of zero cost EMI or instant loans. Avoid these mistakes. Save first, buy expensive things later. A person’s habit of buying luxury items on EMI can haunt him for the rest of his life.

Save at least 20% of your income

Set a financial goal in life and start investing. The 50:30:20 formula means investing at least 20 percent of income. You can invest anything at most. In such a situation, focus should be on saving.

Understand the power of composition

Start SIP as soon as possible. The longer the investment period (Investment Tips for Beginners), the higher the returns. Let us understand it with an example. Let’s say you start depositing Rs 3000 every month at the age of 20. After 30 years, when you turn 50, your total income will be Rs. 1 crore will be 5 lakhs. If you start a SIP of Rs 3000 a little late at the age of 25, you will get only Rs 57 lakh in 50 years. Starting to invest before 5 years can double your income. This is called a power-off combination.

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