6 Best Investment Plans For Salaried Individuals In Their 20s

Most young individuals in their 20s will be in their first job and financial planning is just not in their "to-do" list. But, there are other set of youngsters who plan their finances well in advance as they understand the power of compounding.

Before investment one has to gather all the details such as total income, debt, monthly expenditure etc., and how much one will be able to save.

Most of the young individuals confuse saving with investments. Saving is where you set aside money such as in a bank saving accounts. While investing, means to buy financial instruments which will pay you a return on some future date.

The difference between savings and investment is that savings is simply idle cash while investments help your funds to grow over a period of time.

Listing of goals a plays an important role. Make goals depending on needs and time required. Say, you wish to buy a bike next year, and holiday abroad after two years.

Any financial instrument should be invested considering various factors such as tax applicability, risk, return, tenure, etc.

Here are few investment ideas for young investors:

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