How Should A 22 Year Old Invest His/Her Money?

Investing in shares, mutual funds, and money market babble flies right over your head when you’re in your twenties.However, research found that many people listed not investing as one of their biggest regrets. Here’s how to invest money when you’re in your twenties and make it count.
Published: Monday, June 29th 2015
Investing in shares, mutual funds, and money market babble flies right over your head when you’re in your twenties. However, research found that many people listed not investing as one of their biggest regrets.
Let’s look at how to invest your money  when you’re in your twenties and make it count.
The basic things you should know before you begin investing is:
  • You are always investing in a business when you buy stocks, real estate, bonds.
  • To become a better investor, you need to sharpen your business skills.?
1. Invest In Your Security
Investing in a plan to be secure should be at the top of your list of investments. These types of investment plans include:
  • Protection against accidents, calamities, health problems, etc.
  • Invest in covering your medical expenses.
  • Save money equivalent to 3 months of your salary.
Now that investing in security is covered, find how to invest in the market.
Some Smart Tips Before You Invest:
  • Stay away from the US Dollar.
  • Don’t start by saving money, or keeping it in the bank.
  • Avoid anything that dominates the US Dollar.
  • Invest in foreign stocks.
  • Invest in precious metals and commodities.
Ask Yourself - "Do you want to be comfortable or rich?"
After you’ve invested in your security, ask yourself how you plan to live in the future; either comfortably, or with excess. This will then lead you to one of two different investment planning directions:
 2. Invest To Live Comfortably
If all you want is to live a  financially well-off life, then these actions will determine your goal:
  • Find yourself a good financial planner to guide you.
  • Diversify your mutual funds - invest in a pool of funds.
  • Rand cost your investments - move investing to the forefront.
  • Manage your equity to debt ratios.
  • Save taxes and invest in the long term.
The difference between average investors and rich investors lie in these 3 aspects:
  • Rich investors know that hope is a poor way to invest.
  • Rich investors have a plan for every wave of the market - high, low and stagnant.
  • Rich investors seek control.
3. Invest To Be Rich
What you need to be a rich investor:
  1. Education
  2. Experience
  3. Excessive cash
The behaviour of a rich investor includes:
  • A rich investor does NOT invest in a house as it is seen as a liability.
  • KNOW that investing is a risk, so learn how to control and manage it.
  • Do NOT diversify your investments.
  • Don’t invest in a mutual fund.
  • BUY stock in the  market fall.
  • Buy stock at FAVOURABLE prices & put a stop loss.
  • Look at the RISK/REWARD ratio BEFORE deciding to invest.
So if you want to avoid living a life of regret, invest and make the most of your money.