10 ways for 20-somethings to start investing in their future
Many young investors today want to invest in their 20s but they don’t know how to do it. Contrary to popular belief, youngsters do think about retirement. This basically shows that they care about the future too, not just about the present. Here are 10 amazing tips to help 20-somethings to start investing in the future now.
- Gym membership
The United States spends a lot on healthcare expenses – about $2 trillion annually. The number could have been very different if people paid more attention to their general health. Getting fit at 20 prevents costly health concerns later in life. Don’t you think that it’s worth paying $10/week on a membership card, since it won’t break the bank and it will help you save thousands on health bills by the time you retire?
- Fine wine
Fine wine is one of the most stable forms of alternative investment. You only need 5 years for your wine case to increase in value and become worthy of being traded on the acclaimed Wine Stock Exchange. When stored in proper conditions, chances are that you might make a few extra thousands. Both Burgundy and Bordeaux wines are extremely popular, and even if you won’t make money with your wine, you can always drink it.
- Social media tactic
Recent studies have shown that Americans between 18 and 34 years old spend on average 3.8h/day interacting on social media sites. Having the simplest social media tactic might help you identify your brand, your proposal, and the people you need to meet to monetize your strategy. It is important to have patience, as well as be capable of understanding that several years may be required to build an online presence.
Youngsters in their 20s most likely don’t have that many items to insure. However, this is the perfect time to protect the things that matter to you the most – tablet, phone, TV, laptop, car, etc. This way your business will be safe and in case of loss, you can quickly get them back. But this can only be done with proper insurance. Another great tip is to consider wage insurance as this will cover all your bills throughout unemployment and unpaid sick leave.
- Retirement plans
It may seem impossible to put money aside when you’re 20 and save it for retirement. Nevertheless, there are incentives you can take advantage from. For example, you can benefit from a company-sponsored 401 (k) where co-contributors are rewarded. There will be companies to give you at the very least half. Self-employed individuals must build their own fund, so that they don’t have to work for a lifetime to live comfortably by the time they reach 60.
- Stock investing
Investing in stocks doesn’t have to cost a fortune, unless of course, you can afford to spend. Get to know the industry a bit better before spending any cash, and then search to invest in stocks that are stable – Disney, Coca-Cola, etc. This will allow you to buy/sell your stock without consulting with a broker.
Even though the crowdfunding has increased a lot in popularity over the years, the concept it still worth taking into account. Artists, business people and politicians used crowdfunding platforms to kick start their projects and turn an idea into a company with great potential.
- Steer clear of debt
Believe it or not, debt has a lot to do with making investments in your 20s. The higher your debt the fewer cash you have to invest, especially if you’re fond of the stock market. If you’re also compelled to pay interest on your debt, it’s even worse because it will grow and affect your income. Mitigate debt and find ways to make some cash on the side without taking foolish risks.
- Invest in index funds
If you’re committed to investing in your 20s, you should do it smart. Rather than jump in stocks, you should consider solid index funds, which essentially are stock baskets that keep track of a certain index. Two of the best examples are S&P 500 and NASDAQ. This approach permits you to invest with and not against the market.
- Invest in real estate
Last but not least, we have real estate. Buying a home comes with many perks. But you can’t spend more than you can have. There are many things you can do when investing in real estate – rent, flip, sell, etc. However, if you don’t know the market, ask for guidance to be sure that you’re doing things right.
By Fredrick Cameron and WineInvestment.com!