The 20 Something Investment Strategy

Investmenting is an acquired skill and must be developed from an early stage in life. But it’s never too late to ever start investing. A Chinese proverb says –

 “The best time to plant a tree was 20 years ago. The second best time is now”

Now is the best time to start investing!

The Millennials

The current 20 – 30-something generation is smart and successful and earns a decent income. However, when it comes to money matters, their better sense seems to run for the hills. Moneyjar is here to change that. If you fall under this category and would like to build your stash, follow these simple things and you will be set in your tracks!

Few Things to remember:

  • At this age, the act of “saving” and being able to set money aside away from expenditures, matters more than the returns you generate on investments.
  • The gains from the behavioural change of actually saving rather than spending will be greater compared to any gains you can make in finding the “best” mutual fund to invest in. So focus on developing a disciplined saving habit.
  •  Diversify your streams of cash inflow by running a side hustle. We all have some talent and the internet allows for monetization of that talent. Put yourself out there and capitalize on your talents.
  • The best investment plan for a 25-year-old is to ensure you work hard and have a great work ethic. Get brilliant at your day job and continuously learn new things. Also, read this tweet by, Naval Ravikant: Link
  • The next best investment plan is to ensure you have a monthly 50/30/20 money management routine. First, pay off all important expenses (rent, utilities, food, etc.) at the start of the month, then set aside money for your savings “jar” (forget attaching them to goals, just keep sweeping money out) and then whatever money is left becomes your discretionary expense pile (any expense that is not essential).


Investment strategy for millennials
The 50/30/20 investment rule explained!

So your investment plan basically involves two different apects:


  1. The psychological side where you automate your money allocation habits by getting really good at setting money aside for later before indulging in discretionary expenses.
  2. You also get really good at developing yourself and keep levelling up on life skills.


  1. The financial side of your plan involves a vital question – what do you do with the money you are setting aside? Here is a list of dos and dont’s.
  • Never ever keep money that you won’t need for the next 30 days in a savings account. Put it in a liquid fund.
  • Ignore people who tell you that a little extra gain on a small amount of money does not mean anything. If you don’t start valuing even one extra rupee that can be earned from a few clicks of your mouse, you won’t do it for bigger sums of money. Big things often have small beginnings!
  • Ignore people here that are offering you elaborate SIP schemes with multiple equity funds just because you are young.
  • If you are a novice, start off with liquid and debt funds only. Debt/Liquid funds give you a gentle on-boarding and make you more confident and a better investor in the long run. Once you are a little confident, only then try your hands on equity funds. Do this regardless of your age or risk appetite.
  • The trick is to start your investing journey on a steady note. If you were to start SIP’s in equity funds (with the same assumption everyone has i.e. a 25-year-old can hold his/her investment for 30 years), there is a high likelihood that the investor will redeem his/her investment if they see as much as a 5–10% loss and might swear off investing altogether.

The above tips should propel your investing journey in the right direction and offer some perspective and direction to your investing decisions.

We know how millennials feel about money. But we also have enough experience in guiding the branded “millennials” towards better financial lives by warning them against the common mistakes everyone makes as beginners.

We wish money- management was a part of school and college curriculums. Until then, treat Moneyjar as your buddy and guide for any investment gyaan. We always try to offer advice that helps you outperform, sometimes at the risk of being contrarian and not towing the usual line.

Oh and if you do decide to start setting money aside, try investing in the Stash-away Safe Jar on our platform, Moneyjar. One great liquid fund, one great start to saving 🙂

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