Smart Investments You Should Make in Your 20s

Smart Investments You Should Make in Your 20s
  • Opening Intro -

    When you reach your mid-20s, that’s the time to start investing in various markets.

    You won’t want to miss these smart investments you should make in your 20s, or you’ll regret passing up the opportunity later in life.

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Investing small amounts over longer periods will boost your income significantly by the time you retire. Simply investing in one or two of these can set you up for tremendous success. Don’t get the wrong idea; you don’t need thousands of dollars to start. A few hundred dollars will get you in the game.

Invest in Stocks

The easiest place to start your investments is in the stock market, as you only need a minimal amount of money. But keep in mind that you must have a sufficient amount of cash in an emergency fund that can last you three months of living expenses just in case things turn south. This way, you’ll still have enough money to help you get back on your feet.

The S&P 500 index has an average annual rate of 10 percent going back to 1926, making it an impressive first investment opportunity.

The stock market fluctuates drastically, and you’ll need to keep a keen eye on your investment accounts. But when you’re in your mid-20s, taking a chance on a larger stock is a risk you can afford to take.

Take advantage of other stocks with low prices but hold a top stock name. This will give you a ton of money to set aside for later.

Invest in Real Estate

If the stock market frightens you, investing in real estate might be better. While the stock market can fall, a real estate investment trust (REIT) may continue to rise and give you positive returns.

The housing market varies, but you can find homes to buy with a minuscule down payment of just 3 percent. If the only thing you do is pay off your mortgage for 30 years, your original investment will grow!

Buying a home doesn’t necessarily mean you’ll be living there. You can rent out the house or invest in multiple commercial real estate properties to dip your toes in different property types and various locations.

With abundant reasons to invest in real estate in your 20s, you’ll be doing your future self a favor by investing when you’re young.

Invest in Yourself

If you’re a real go-getter, you’ve probably already begun building your skills in a career. However, it’s never too late to begin your journey in education. Even if your only goal is to climb the corporate ladder or make a career change, you should never stop learning!

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Boosting your skills is a smart investment to make in your 20s because it’ll help you in the future. The skills you gather here could allow you to start a side hustle that generates even more income for you.

The word “investment” might make you cringe thinking about all the money it will take to start. But in reality, making your first investments when you’re young will turn small amounts of cash into large pools of money later on in life. Investing now is the wisest decision you can make for your future self.

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