Investing can be a great way to build wealth for the future and/or provide extra cash on the side to improve your lifestyle. Your 20s are an exciting time in your life full of freedom and opportunity and investing can really help you to maximize this special time as well as set you up for life when you know what you should be investing in.
Establishing Your Goals
Investing can be daunting for those that are just getting started and there are many different options to consider. Before you start investing, you should always consider what your short and long-term goals are and determine how risk-averse you are. The good news is that in your 20s you have a long time to ride out ups and downs in the market, so you can opt for higher risk investments compared to those that are just approaching retirement.
Building Long Term Wealth
So, what should you be investing in during your 20’s? If you are looking for steady returns and want to build wealth for the future, you will find that investing in index funds in a global tracker is smart. This is as diverse as you can get and, due to compounding, you can build a significant amount of wealth over a long time period. It is worth speaking with investment management specialists that can help you to meet your goals and grow your portfolio.
Short-Term Options
If you are looking for more short-term options that are a bit more flash and exciting, cryptocurrency, Forex, and individual stocks and shares will be for you. Keep in mind that these markets can be volatile, so you need to be prepared for ups and downs. Crucially, you should never invest in something that you do not understand, so be sure to do your homework beforehand – the internet is a great resource for this.
Invest in Yourself
At this stage in your life, it is also important that you invest in yourself. Investing in yourself can help to improve your career prospects for greater earnings as well as help you to lead a happier, healthier, and more fulfilling life. There are all kinds of ways that you can invest in yourself, including education and training, developing new skills, and leading a healthy lifestyle. Your 20s are a special time in your life that you will want to make the most out of. Crucially, you cant invest your way out of debt or bad spending habits, so make sure that you are out of debt before starting your investment journey.
