In the realm of investing, a common theme we often hear is that starting to invest early can yield significant long-term returns. However, for many young people, investing can seem both complex and intimidating. Here are some pieces of investment knowledge that financial experts wish they had known in their 20s, which could help you avoid common mistakes and motivate you to start or improve your investment journey.

1. You don’t need a lot of money to start investing. Many people think you need a large sum of money to begin investing, but that’s not the case. Nowadays, there are many micro-investment platforms that allow you to start investing with very small amounts.
2. Understand the power of compound interest. Compound interest, referred to by Einstein as the “eighth wonder of the world,” can cause your investments to grow exponentially over time. The earlier you start investing, the more significant the impact of compound interest.
3. Diversification is key. Putting all your eggs in one basket is risky. By diversifying your investments, you can reduce risk and increase the potential for returns across your overall portfolio.
4. Maintain a long-term perspective. Investment markets will have ups and downs, but maintaining a long-term perspective typically yields better returns. Short-term market fluctuations should not be the main factor in making investment decisions.
5. Automate your investments. By setting up automatic transfers to your investment account, you can ensure regular investments and leverage the power of time.
6. Fees matter. When investing, be mindful of potential fees and costs, as they can significantly reduce your returns.
7. Education is key. Take the time to learn about different types of investments and strategies before investing. Knowledge is a powerful weapon in the investment world.
8. Avoid emotional investing. Investment decisions should be based on rational analysis, not emotional reactions. Both fear and greed can lead to poor investment choices.
9. Utilize tax-advantaged accounts. Make full use of retirement accounts and other tax-advantaged investment accounts like IRAs and 401(k)s, which can help you grow your wealth more efficiently.
10. Regularly review and adjust your portfolio. As time goes by, your financial goals and circumstances may change; regularly reviewing your portfolio and making necessary adjustments ensures it aligns with your current needs.
11. Don’t be afraid to seek professional help. If you’re unsure where to start or how to manage your portfolio, seeking the help of a financial advisor can be a wise choice.

By adopting these suggestions, you can avoid some common pitfalls and achieve success in your investment journey. Remember, the most important thing is to start taking action, even if it’s small steps.