6 Wise Investment Tips For 20-Somethings

0
167

As a 20-something, this time in your life is filled with a litany of firsts. Your first real career, first child, and the first home. While your 20’s are a time of major change and constant flux, now is a good opportunity to build some powerful investment habits.

The Best Investment Strategies for Your 20’s

Regardless of what your financial situation is currently, it’s important to put aside a portion of your earnings for investments and savings. While you likely are still trying to earn your ideal income, it’s important to start saving now. Read on for six strategies to help with your investments.

1. Get Your Investments Automated

Take the hassle out of investing by using apps to automate your investing process. With certain apps, you can put your investing on autopilot. As you earn or spend, these apps will take a portion of your funds and invest it. While you need to do a good deal of research in order to find the right app for you, using an automation solution for investments is one of the most efficient ways to invest.

2. Invest a Little at First

Many people are under the false impression that they need to already have a lot of disposable income in order to invest. This simply isn’t true. By putting away a couple of dollars at a time, you’ll eventually see that these little investments do have a long-term effect. Whether you start with one dollar or a hundred dollars, once you begin investing, you’ll be on track to building a better financial future.

3. Start Investing in Stocks

Starting out investing in stocks in your 20’s is about building a long-term portfolio. With the benefit of having time to dedicate to building your portfolio, you can handle the ups and downs that come with certain stocks. Begin your intro to the stock market by identifying the best stocks to invest in. These are stocks that will be able to diversify your portfolio but aren’t so risky that your investment won’t grow over time.

4. Invest in Real Estate

While you’re more likely to think about paying rent or a down payment on a home during this time in your life, your 20’s are also the optimal time to try investing in real estate. You don’t have to be incredibly wealthy to start investing in real estate; interested individuals often begin by trying real estate crowdfunding or purchasing the right investment property.

The option of real estate crowdfunding allows new investors to begin with investments as small as $100. This is perfect for investors in their 20s looking to build their wealth. When looking at an investment property, singles or couples can purchase a home or apartment that they can flip or lease out. If you’re willing to opt for a loan, you can easily purchase a house to fix and flip.

5. Try Out Franchising

While franchising is usually left out of the 20-somethings’ guide to wise investing, that doesn’t make it a bad idea. Yes, it will likely take a loan to purchase a franchise initially, but in the end, it’s worth it. If you have the time and energy to invest in franchising, you’ll reap the rewards in the long term.

Great franchises to consider in your 20’s include pet care companies, landscaping companies, and fast food restaurants. A great way to tackle the idea of inesting in a franchise is to go into it with friends or family members. By splitting the responsibility, you all will be able to ensure the investment is worth it.

6. Invest in Your Retirement

If your employer offers you a 401(K), now is the time to start putting part of your paycheck towards your retirement. By contributing the minimum for your employer to match your 401(k) you can get a return that is 100% on what you’ve invested.

Don’t let your 20’s get away from you before you’ve developed a working plan for proper investing. Use these six ideas to get a handle on your investments as you work your way to building wealth for the rest of your life.

SHARE
Previous article6 Tips To Selecting The Right Car For You
Next article4 Unique Ways To Market Your Small Business
Kevin Schultz is a professional journalist with over 15 years of writing and media experience. He is a full-time contributor to the Themocracy Online News Blog and his insightful writing has been enjoyed by thousands.