The first step in beginning your journey is deciding how much to invest. How much you should invest depends on your investment goal and when you need to reach it. One common investment goal is retirement. As a general rule of thumb, you want to aim to invest a total of 10% to 15% of your income each year for retirement.

Decide The Investment Amount

As per the World Inequality Report, 2021, 50% of Indians hold no assets in their own name. Indians are incapable of generating wealth with the per capita is because of lack of financial planning.

Post picking an investment option, it is important to craft an investment strategy depending on your saving goals, how much money you need to reach them and your time horizon. If your savings goal is more than 20 years away, almost all of your money can be in stocks. But picking specific stocks can be complicated and time-consuming, so for most people, the best way to invest in stocks is through low-cost stock mutual funds, index funds or ETFs.

The Investment Strategy 

<a href="https://www.investopedia.com/terms/d/diversification.asp">Diversification </a>is considered to be the only free lunch in investing. As a beginner investor, by investing in a range of assets, you reduce the risk of one investment’s performance severely hurting the return of your overall investment. You could think of it as financial jargon for “Don’t put all of your eggs in one basket.” It is integral in imbibing diversification as the soul of your portfolio.

Diversification Is The Key 

One thing I like about us is that we know all about exponential growth and compounding, but none of us take it seriously when we consider investments. We just look for quick bucks that leads us to investing directly in harsh equity and the crypto market currently. This is, frankly, not the correct way to invest.The days of storing your savings under a mattress are over. Cash under your mattress can’t even keep up with inflation, let alone grow enough for retirement. Investing when you’re young is one of the best ways to see solid returns on your money.

Joys Of Compounding 

With great investment, comes great returns. Investment is not a chore but should be a habit and I feel that once it becomes a habit, it can make one a millionaire. We all know Warren Buffett, a…

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