Your 20s are a fantastic time to start investing! Here are some key steps to get you going:

1. Define Your Goals:

• Short-Term vs. Long-Term: Are you saving for a down payment on a house in a few years (short-term) or a comfortable retirement decades from now (long-term)? Knowing your goals will influence your investment choices.
• Risk Tolerance: How comfortable are you with potential losses? Higher potential returns often come with higher risk. Understanding your risk tolerance will help you choose suitable investments.

2. Prioritize Saving:

• Develop a budget and track your expenses. Identify areas where you can cut back and allocate those funds towards savings and investments.

3. Build an Emergency Fund:

• Aim to save 3-6 months of living expenses in an easily accessible account like a high-yield savings account. This acts as a safety net for unexpected events and prevents you from needing to sell investments at a loss during emergencies.

4.  Start Small and Invest Regularly:

• You don’t need a huge sum to begin. Many investment platforms allow you to start with small, regular contributions (e.g., monthly) through a process called SIP (Systematic Investment Plan) which benefits from rupee-cost averaging.

5. Consider Low-Cost Index Funds:

• Index funds are passively managed funds that track a specific market index (e.g., Nifty 50). They offer diversification, lower fees compared to actively managed funds, and a good long-term track record.

6. Leverage Employer-Sponsored Plans:

• If your employer offers a retirement plan like a 401(k), contribute as much as you comfortably can, especially if there’s a company match. This allows your money to grow tax-deferred and potentially comes with free employer money.

7.  Automate Your Investments:

• Set up automatic transfers from your checking account to your investment account. This ensures consistent savings and removes the temptation to spend that money.

8. Educate Yourself:

• There are many resources available online and through libraries to learn about investing basics and different investment options.

Remember,  consistency and a long-term approach are key to successful investing. Starting early in your 20s gives your investments more time to grow through the power of compounding. By following these steps and continuing to learn about investment and finance, you can build a solid foundation for your financial future.