FREE: DotComSecrets Book
The Underground Playbook For Growing Your Company Online

FREE: DotComSecrets Book
The Underground Playbook For Growing Your Company Online

Best Ways To Invest Money In Your 20s (2019 Guide)

Start a side hustle by Jan Tumbokon

Best Ways To Invest Money In Your 20sWhen it comes to investments, it is always prudent that you be prepared for any outcome.

As much as you expect to make profits out of what you invest, you may at times end up incurring losses.

Again, the more risks you take the higher your returns will be.

If you are in your twenties, it is easier to afford to take the risks compared to older investors.

When you reach the age of 23, it is advised that you start putting at least 14 every day in your savings account. This means that by the age of 67, you will already have 1 million.

Here are some of the best ways to invest money in your 20s to guarantee you a comfortable life ahead…

Create a budget

Handing personal finances is tough, and you can only be sure of what you are doing with your money if you come up with a budget.

The most surprising thing is that about 60% of the American population does not plan for their money.

Without a budget, you may not be able to track your finances and this means that identifying saving opportunities will also be difficult.

You actually don’t need to have a lot of tools at your disposal to come up with a budget. A spreadsheet on your PC is enough to list your monthly expenses and compare it with the total amount you earn that month.

If the money you spend on a monthly basis is (or almost) more than what you earn, then it is time to reduce your expenses and release enough funds to go to your savings account.

The good thing is that people in their 20s have fewer financial responsibilities and you can always adjust your expenses to save as much as you want.

Have emergency savings

The fact that you are young doesn’t mean that you should worry less about emergencies. Regardless of your age, you obviously won’t know when you will fall ill, lose your job or be faced with other emergency situations that require instant funding.

If you do not set aside funds for emergencies, you might find yourself accumulating more debt than you can afford and this is the last thing you would want to happen when you are in your 20s.

To be on the safe side, it is important to have an emergency fund that has accumulated about 6 months worth of your living expenses.

Have a retirement plan

Majority of the people in their 20s believe that retirement plans are only for the older population. But this should not be the case. In fact, the sooner you start saving for retirement the better.

This doesn’t mean that you should start planning how your retirement days will be spent when you are only 20 or 25, but you should know the expenses that go with retirements like healthcare for instance, which is one of the main expenses or even buying a house.

Find out how much you will start saving now to guarantee you a comfortable life after retirement. 

Employers, for instance, offer employees retirement finances to save through 401(K) plans. With a 401(K) plan, you can save for retirement directly from your paycheck this money is not taxed.

The second option is to open an Individual Retirement Account (IRA). IRA is available in two different types i.e., traditional and Roth IRA. There is no difference between a traditional IRA and employer-sponsored retirement plans.

Since it is a pre-tax contribution, your taxable income for that year will be reduced. But with Roth IRA, taxes are paid.

The good thing with Roth IRA is that when you withdraw your retirement money, you won’t have to worry about federal taxes.

Start funding your nest egg

A lot of people today, half of the working population to be precise have not yet started saving for retirement. This is because people, especially those in their 20s assume that it is too early for them to build a nest egg.

On the contrary, the longer time it takes to start saving for retirement the more it will cost you to have a decent amount in savings. This means that you should start investing your money when are still in a position to and see your investment grow

Pay your credit card debts

According to statistics, a good number of consumers have accumulated balances on their credit cards. Last year alone, the average credit card balances that each household had accumulated amounted to $16,000.

But even if you don’t have such a high balance, it is always important to pay off those balances within the shortest time possible to avoid incurring more on interest.

Paying your credit card debt on time will not only save you money, but it will also have a positive impact on your credit score. Having a good credit score can especially be important if you want to purchase a house, lease a car or even rent an apartment in the future.

It is easier to avoid credit card balances by monitoring your spending habits, start saving among other ways.

Buy life insurance

Buying life insurance can also be a good option, and especially when you have people who depend on you financially. The best part with life insurances is that the younger you are the lower the rates are, and this makes the insurance more affordable.

There are many companies that offer life insurance plans, which is important that you compare your options to benefit from the lowest rates out there. You can also opt for a financial advisor to advise you on the best coverage you need.

Invest in stocks

With emergency savings, the best place to store your money is at the bank or any other financial institution. But for long term goals, you can easily grow your wealth by investing in stock and the best part of it is that there is fewer risk involved.

This does not mean that stock market investment is not a risky investment. There will obviously be some ups and downs involved, but you can almost be sure of about 9% in returns per year. This is nine times the amount you would get if you had put the same money in a savings account.

Save for home

Renting a home come with its share of benefits, for instance, you won’t have to worry about repair and maintenance. But having your own home is also important.

However, you will only be in a position to buy a home if you have saved enough for a down payment.

It is possible to put a little amount as down payment, although having a down payment of at least 20% of the home’s purchase price is always recommended. This is because if your down payment is less than 20% of the home’s purchase price, you will have to pay Private Mortgage Insurance (PMI), and this will increase the total cost of the home.

You also have the option of taking out a conforming loan with a 30-year repayment plan. If you are still in your 20s, you have the opportunity to reduce the debt before retirement.

Increase your income

Most people in their 20s have fewer financial obligations. But this also doesn’t mean that you should not ask for higher pay.

If you believe that your employer is not paying you what you deserve, it really doesn’t hurt to open negotiations for a salary increment.

The more money you earn the faster you will get out of debt and you will also be able to save enough during your career that can guarantee you a comfortable life after retirement.

Aside from requesting for a salary income, you can also think of some of your hobbies that can generate extra income. This means that you will also be making extra cash on something you do during your spare time.

Pay your student loan

About two-thirds of college graduates begin their careers even before clearing their student loan debts.

The good news is that repayment for student loans are flexible and you can pay them over a number of years.

All you need to do is have a repayment schedule and ensure that all your monthly payments are made on time.

Set financial goals

Setting financial goals may not be that exciting for a young person. But by knowing what you want to achieve in terms of saving, it will be easier for you to know how much you need to sacrifice on a monthly basis.

Now I’d Like To Hear From You

Chat With Us

There you have it, some of the best ways to invest money in your 20s…
For people in their 20s, time is one of the biggest advantages they have. If you start your investments early, the financial rewards will also be more. This is why it is very important to start investing while you are still young.

In fact, you should start knowing the basics of investing as early as 23 years. The process can be complex and overwhelming, but with a little research and education, you will be more confident in your strategies.

What other methods or techniques that you use to increase your net worth?

SiteGround
SiteGround

Best Ways To Invest Money In Your 20s (2019 Guide)

Start a side hustle by Jan Tumbokon

Best Ways To Invest Money In Your 20sWhen it comes to investments, it is always prudent that you be prepared for any outcome.

As much as you expect to make profits out of what you invest, you may at times end up incurring losses.

Again, the more risks you take the higher your returns will be.

If you are in your twenties, it is easier to afford to take the risks compared to older investors.

When you reach the age of 23, it is advised that you start putting at least 14 every day in your savings account. This means that by the age of 67, you will already have 1 million.

Here are some of the best ways to invest money in your 20s to guarantee you a comfortable life ahead…

Create a budget

Handing personal finances is tough, and you can only be sure of what you are doing with your money if you come up with a budget.

The most surprising thing is that about 60% of the American population does not plan for their money.

Without a budget, you may not be able to track your finances and this means that identifying saving opportunities will also be difficult.

You actually don’t need to have a lot of tools at your disposal to come up with a budget. A spreadsheet on your PC is enough to list your monthly expenses and compare it with the total amount you earn that month.

If the money you spend on a monthly basis is (or almost) more than what you earn, then it is time to reduce your expenses and release enough funds to go to your savings account.

The good thing is that people in their 20s have fewer financial responsibilities and you can always adjust your expenses to save as much as you want.

Have emergency savings

The fact that you are young doesn’t mean that you should worry less about emergencies. Regardless of your age, you obviously won’t know when you will fall ill, lose your job or be faced with other emergency situations that require instant funding.

If you do not set aside funds for emergencies, you might find yourself accumulating more debt than you can afford and this is the last thing you would want to happen when you are in your 20s.

To be on the safe side, it is important to have an emergency fund that has accumulated about 6 months worth of your living expenses.

Have a retirement plan

Majority of the people in their 20s believe that retirement plans are only for the older population. But this should not be the case. In fact, the sooner you start saving for retirement the better.

This doesn’t mean that you should start planning how your retirement days will be spent when you are only 20 or 25, but you should know the expenses that go with retirements like healthcare for instance, which is one of the main expenses or even buying a house.

Find out how much you will start saving now to guarantee you a comfortable life after retirement. 

Employers, for instance, offer employees retirement finances to save through 401(K) plans. With a 401(K) plan, you can save for retirement directly from your paycheck this money is not taxed.

The second option is to open an Individual Retirement Account (IRA). IRA is available in two different types i.e., traditional and Roth IRA. There is no difference between a traditional IRA and employer-sponsored retirement plans.

Since it is a pre-tax contribution, your taxable income for that year will be reduced. But with Roth IRA, taxes are paid.

The good thing with Roth IRA is that when you withdraw your retirement money, you won’t have to worry about federal taxes.

Start funding your nest egg

A lot of people today, half of the working population to be precise have not yet started saving for retirement. This is because people, especially those in their 20s assume that it is too early for them to build a nest egg.

On the contrary, the longer time it takes to start saving for retirement the more it will cost you to have a decent amount in savings. This means that you should start investing your money when are still in a position to and see your investment grow

Pay your credit card debts

According to statistics, a good number of consumers have accumulated balances on their credit cards. Last year alone, the average credit card balances that each household had accumulated amounted to $16,000.

But even if you don’t have such a high balance, it is always important to pay off those balances within the shortest time possible to avoid incurring more on interest.

Paying your credit card debt on time will not only save you money, but it will also have a positive impact on your credit score. Having a good credit score can especially be important if you want to purchase a house, lease a car or even rent an apartment in the future.

It is easier to avoid credit card balances by monitoring your spending habits, start saving among other ways.

Buy life insurance

Buying life insurance can also be a good option, and especially when you have people who depend on you financially. The best part with life insurances is that the younger you are the lower the rates are, and this makes the insurance more affordable.

There are many companies that offer life insurance plans, which is important that you compare your options to benefit from the lowest rates out there. You can also opt for a financial advisor to advise you on the best coverage you need.

Invest in stocks

With emergency savings, the best place to store your money is at the bank or any other financial institution. But for long term goals, you can easily grow your wealth by investing in stock and the best part of it is that there is fewer risk involved.

This does not mean that stock market investment is not a risky investment. There will obviously be some ups and downs involved, but you can almost be sure of about 9% in returns per year. This is nine times the amount you would get if you had put the same money in a savings account.

Save for home

Renting a home come with its share of benefits, for instance, you won’t have to worry about repair and maintenance. But having your own home is also important.

However, you will only be in a position to buy a home if you have saved enough for a down payment.

It is possible to put a little amount as down payment, although having a down payment of at least 20% of the home’s purchase price is always recommended. This is because if your down payment is less than 20% of the home’s purchase price, you will have to pay Private Mortgage Insurance (PMI), and this will increase the total cost of the home.

You also have the option of taking out a conforming loan with a 30-year repayment plan. If you are still in your 20s, you have the opportunity to reduce the debt before retirement.

Increase your income

Most people in their 20s have fewer financial obligations. But this also doesn’t mean that you should not ask for higher pay.

If you believe that your employer is not paying you what you deserve, it really doesn’t hurt to open negotiations for a salary increment.

The more money you earn the faster you will get out of debt and you will also be able to save enough during your career that can guarantee you a comfortable life after retirement.

Aside from requesting for a salary income, you can also think of some of your hobbies that can generate extra income. This means that you will also be making extra cash on something you do during your spare time.

Pay your student loan

About two-thirds of college graduates begin their careers even before clearing their student loan debts.

The good news is that repayment for student loans are flexible and you can pay them over a number of years.

All you need to do is have a repayment schedule and ensure that all your monthly payments are made on time.

Set financial goals

Setting financial goals may not be that exciting for a young person. But by knowing what you want to achieve in terms of saving, it will be easier for you to know how much you need to sacrifice on a monthly basis.

Now I’d Like To Hear From You

Chat With Us

There you have it, some of the best ways to invest money in your 20s…
For people in their 20s, time is one of the biggest advantages they have. If you start your investments early, the financial rewards will also be more. This is why it is very important to start investing while you are still young.

In fact, you should start knowing the basics of investing as early as 23 years. The process can be complex and overwhelming, but with a little research and education, you will be more confident in your strategies.

What other methods or techniques that you use to increase your net worth?

SiteGround
SiteGround

FREE: DotComSecrets Book
The Underground Playbook For Growing Your Company Online

Best Ways To Invest Money In Your 20s (2019 Guide)

Start a side hustle by Jan Tumbokon

Best Ways To Invest Money In Your 20sWhen it comes to investments, it is always prudent that you be prepared for any outcome.

As much as you expect to make profits out of what you invest, you may at times end up incurring losses.

Again, the more risks you take the higher your returns will be.

If you are in your twenties, it is easier to afford to take the risks compared to older investors.

When you reach the age of 23, it is advised that you start putting at least 14 every day in your savings account. This means that by the age of 67, you will already have 1 million.

Here are some of the best ways to invest money in your 20s to guarantee you a comfortable life ahead…

Create a budget

Handing personal finances is tough, and you can only be sure of what you are doing with your money if you come up with a budget.

The most surprising thing is that about 60% of the American population does not plan for their money.

Without a budget, you may not be able to track your finances and this means that identifying saving opportunities will also be difficult.

You actually don’t need to have a lot of tools at your disposal to come up with a budget. A spreadsheet on your PC is enough to list your monthly expenses and compare it with the total amount you earn that month.

If the money you spend on a monthly basis is (or almost) more than what you earn, then it is time to reduce your expenses and release enough funds to go to your savings account.

The good thing is that people in their 20s have fewer financial responsibilities and you can always adjust your expenses to save as much as you want.

Have emergency savings

The fact that you are young doesn’t mean that you should worry less about emergencies. Regardless of your age, you obviously won’t know when you will fall ill, lose your job or be faced with other emergency situations that require instant funding.

If you do not set aside funds for emergencies, you might find yourself accumulating more debt than you can afford and this is the last thing you would want to happen when you are in your 20s.

To be on the safe side, it is important to have an emergency fund that has accumulated about 6 months worth of your living expenses.

Have a retirement plan

Majority of the people in their 20s believe that retirement plans are only for the older population. But this should not be the case. In fact, the sooner you start saving for retirement the better.

This doesn’t mean that you should start planning how your retirement days will be spent when you are only 20 or 25, but you should know the expenses that go with retirements like healthcare for instance, which is one of the main expenses or even buying a house.

Find out how much you will start saving now to guarantee you a comfortable life after retirement. 

Employers, for instance, offer employees retirement finances to save through 401(K) plans. With a 401(K) plan, you can save for retirement directly from your paycheck this money is not taxed.

The second option is to open an Individual Retirement Account (IRA). IRA is available in two different types i.e., traditional and Roth IRA. There is no difference between a traditional IRA and employer-sponsored retirement plans.

Since it is a pre-tax contribution, your taxable income for that year will be reduced. But with Roth IRA, taxes are paid.

The good thing with Roth IRA is that when you withdraw your retirement money, you won’t have to worry about federal taxes.

Start funding your nest egg

A lot of people today, half of the working population to be precise have not yet started saving for retirement. This is because people, especially those in their 20s assume that it is too early for them to build a nest egg.

On the contrary, the longer time it takes to start saving for retirement the more it will cost you to have a decent amount in savings. This means that you should start investing your money when are still in a position to and see your investment grow

Pay your credit card debts

According to statistics, a good number of consumers have accumulated balances on their credit cards. Last year alone, the average credit card balances that each household had accumulated amounted to $16,000.

But even if you don’t have such a high balance, it is always important to pay off those balances within the shortest time possible to avoid incurring more on interest.

Paying your credit card debt on time will not only save you money, but it will also have a positive impact on your credit score. Having a good credit score can especially be important if you want to purchase a house, lease a car or even rent an apartment in the future.

It is easier to avoid credit card balances by monitoring your spending habits, start saving among other ways.

Buy life insurance

Buying life insurance can also be a good option, and especially when you have people who depend on you financially. The best part with life insurances is that the younger you are the lower the rates are, and this makes the insurance more affordable.

There are many companies that offer life insurance plans, which is important that you compare your options to benefit from the lowest rates out there. You can also opt for a financial advisor to advise you on the best coverage you need.

Invest in stocks

With emergency savings, the best place to store your money is at the bank or any other financial institution. But for long term goals, you can easily grow your wealth by investing in stock and the best part of it is that there is fewer risk involved.

This does not mean that stock market investment is not a risky investment. There will obviously be some ups and downs involved, but you can almost be sure of about 9% in returns per year. This is nine times the amount you would get if you had put the same money in a savings account.

Save for home

Renting a home come with its share of benefits, for instance, you won’t have to worry about repair and maintenance. But having your own home is also important.

However, you will only be in a position to buy a home if you have saved enough for a down payment.

It is possible to put a little amount as down payment, although having a down payment of at least 20% of the home’s purchase price is always recommended. This is because if your down payment is less than 20% of the home’s purchase price, you will have to pay Private Mortgage Insurance (PMI), and this will increase the total cost of the home.

You also have the option of taking out a conforming loan with a 30-year repayment plan. If you are still in your 20s, you have the opportunity to reduce the debt before retirement.

Increase your income

Most people in their 20s have fewer financial obligations. But this also doesn’t mean that you should not ask for higher pay.

If you believe that your employer is not paying you what you deserve, it really doesn’t hurt to open negotiations for a salary increment.

The more money you earn the faster you will get out of debt and you will also be able to save enough during your career that can guarantee you a comfortable life after retirement.

Aside from requesting for a salary income, you can also think of some of your hobbies that can generate extra income. This means that you will also be making extra cash on something you do during your spare time.

Pay your student loan

About two-thirds of college graduates begin their careers even before clearing their student loan debts.

The good news is that repayment for student loans are flexible and you can pay them over a number of years.

All you need to do is have a repayment schedule and ensure that all your monthly payments are made on time.

Set financial goals

Setting financial goals may not be that exciting for a young person. But by knowing what you want to achieve in terms of saving, it will be easier for you to know how much you need to sacrifice on a monthly basis.

Now I’d Like To Hear From You

Chat With Us

There you have it, some of the best ways to invest money in your 20s…
For people in their 20s, time is one of the biggest advantages they have. If you start your investments early, the financial rewards will also be more. This is why it is very important to start investing while you are still young.

In fact, you should start knowing the basics of investing as early as 23 years. The process can be complex and overwhelming, but with a little research and education, you will be more confident in your strategies.

What other methods or techniques that you use to increase your net worth?