what you should have invested in your 20s have you ever asked yourself if you could be spending your
money more wisely do you sometimes find yourself broke or close to having no money what if I told
you that there were 8 things you can do with the little money you have right now to build
a financially stable future well in today's video I will tell you eight things you can do with your
money so you can have a prosperous wealthy future they say your 20's are the most important years
of your life just ask the 40 and 50 year olds they will tell you in the stories of how they wish they
had started investing early and spent their money wiser although everyone keeps telling you you need
to start saving and start investing where and what exactly should you invest in while you're young in
today's video we will solve this problem for you we will give you seven different investments you
should consider it may not be possible to invest in all of them but make sure you evaluate each
and every one and pick at least for the first two we believe are a must I hope you guys will enjoy
this video we put in a lot of time and effort into making these videos for you so if you don't mind
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welcome and enjoy the video so let's begin 1 get a retirement plan you have to get a retirement
plan no question here's why if you start early you will get an early jump on retirement savings
and harness the power of compounding interest in your favor a years difference in retirement
savings could amount to thousands of dollars so start today if you haven't already if you start
contributing $500 a month to a retirement plan with a return of 7% at the age of 25 you will have
about two million dollars at retirement but let's say you did not take our advice and procrastinated
for 10 years now you are 35 saving $1,000 a month into a retirement plan with a return of 7% you
will have about 1,600,000 at retirement this is 20% less even though the annual contribution is
50% higher it's clear to see from our simple example that the earlier you start the more
money you will have when it comes to compound interest and the pounding effect it has on your
money over time time is your greatest advantage if you want to have more money in your retirement
you have to start early it's not about how much you put in you can start with a small amount of
let's say $100 and increase it over time but if you can start with a lot more by all means go for
it it's not about how much you put in although a large amount certainly helps when it comes to
compound interest and the compounding effect it has on your money time is your greatest advantage
the earlier you start the more bountiful you will reap just as the example before showed the other
reason why a retirement plan is so awesome is you get tax deferrals and who doesn't want to
pay less taxes right tax deferral benefits are just as magical but let's say for some reason you
opt to invest the same amount as before so five hundred dollars a month in a taxable investment
option with a tax marginal rate of twenty five percent the returns you get will be lowered
to 5.25 percent so instead of about two million dollars you would have received with a retirement
plan he will instead receive about 1 million three hundred thousand which is about thirty
five percent less the best retirement plans are the 401k or 403b plans for those who are employed
and the traditional or Roth IRA plans for those without a plan from their workplace to invest in
yourself I know you probably didn't think this would be here but if what rational importance
is having a car with a non functional engine by investing in yourself we mean taking care of all
factors that affect you this includes your health in mind invest in proper health care insurance and
adopt a healthy lifestyle also continuously take courses to increase your knowledge and know-how
because let's face it you don't want to be 50 and struggling to study take advantage of the
fact that you're young to study more enroll for your masters and MBA or even a PhD and take as
many professional courses within your career path not only will this boost your knowledge but also
open more opportunities for better paying jobs or help you manage your business better if you're an
entrepreneur 3 invest in the S&P 500 index funds growth oriented assets have the power to boost
your net worth incredibly fast especially when you're young these funds take advantage of the
power of compounding interest and will grow your money faster than any other investment the S&P 500
index has given investors an average return of 10% from 1926 it is one of the safest motion awarding
investments for example if you invest $10,000 in certificates of deposit with an annual return of
2% from the age of 25 with a plan of retiring at 65 you'd have 20 few thousand dollars at
retirement but by investing the same amount in the S&P 500 index funds with an average annual
rate of 10% you'd have four hundred thousand at retirement this is more than 20 times as much as
you would have received in the CDs option however please note that the ten percent return rate on
S&P funds is an average acquired from the last ten years you may lose twenty percent in one year
and gain 40 percent in the next as the rates can fluctuate drastically however when you're young
this is a risk you can afford to take for invest in a real estate investment trusts also known as
REI tease these trusts are another type of growth type investments you can't ignore in your 20s if
you can't yet afford to invest in real estate or buy property this is a great channel for you by
investing in a real estate investment trust you are taking the opportunity to hold a portfolio
of commercial real estate we believe this is a better option than owning a single real estate
unit because your investment portfolio will be diversified and invested in multiple properties
within different regions giving you better security on your investment it's best to be safe
with your hard-earned money the other advantage is that you don't need to invest as much as you would
with a single property all you need is a couple of thousands of dollars which is not a lot compared
to purchasing a single unit which would require much larger capital usually in the five or six
figures plus range also you won't need to actively manage the investment another great advantage is
this investment type will give you the advantage of investing in commercial property which often
does better than residential properties if you're still not sure if you should invest here consider
the fact that real estate has been one of the best performing investments over the past five
decades secondly real estate moves independently of the stock market so it's possible for an REI T
to provide continuous positive returns even when the stock market is not doing so great five buy
a home nothing can give you more security than having your own house owning your own house is
everyone's dream and owning your own home is also a great investment it will not only give you peace
of mind security and a place to call home during your not so youthful years but owning a house will
let you build substantial equity over time also owning a home will give you leverage you can own a
home with down payments as little as 5% or nothing depending on which part of the world you're living
in this can give you the appreciation benefit on a $300,000 property with an out of pocket investment
of as little as $15,000 even if you simply pay off your mortgage within 30 years your house will
go up in value and grow to more than the $300,000 you paid for it thanks to the appreciation factor
however as great as owning a house is buying your home while young has a downside at a young age you
may not be in a position to settle within a given geographic location you may also incur transfers
within your career to other locations however if this happens you can always rent out your home
or furnish it and lease it on platforms such as Airbnb buying a home is an excellent investment
while young however buying a house is a big financial decision so make sure you're absolutely
certain before buying a house 6 Robo advisors if you've been following through with this video then
you must have noted when we mentioned investing in real estate stocks through REI T's and the S&P 500
index funds these are great investment options but you may not be so comfortable dishing out
your money there on your own if that's the case you could use a Robo advisor Robo advisors our
online automated investment platforms which will make all the investment decisions on your behalf
this includes creating a portfolio for you and managing it accordingly in the future sounds
crazy right but let's face it not everyone is a Warren Buffett you may not have all the
knowledge needed to make the right investment choices here's where Robo advisors come in these
automated platforms will reinvest your dividends periodically and rebalance your portfolio and will
offer you expert tax strategies to minimize your taxable investment revenue to the utmost
minimum all you will need to do is fund your account and let the robots do all the work it's
hands-off investing at its best these automated platforms will typically invest in a mix of bonds
and stocks and at times some are EITS creating an optimum portfolio 7 debt repayment what most young
people don't realize just ask the 50 and 60 year olds is the debt can drag you behind through your
journey in building wealth student loans are one of the greatest issues that face people in their
20s and 30s and according to research an average student has about $33,000 in college debt other
than this huge debt many young people also have credit card and pending car loans I can almost
guarantee debt will reduce your cash flow it will hinder the amount available to invest with in a
perfect world ideally you would have no debt but in today's credit card Laden world with instant
loans at the tap of a button a majority of us have some form of debt if you currently have
debt you have to create some form of balance while it may be easy to make minimum payments off your
loans and throw everything else into investments this may not always be the right move doing so
will allow you to take advantage of compounding from the interest of your investments but at the
same time it may create an imbalance returns from investments are not always guaranteed if you lose
15% of your investments you may still have to pay off your loans which could be 4% on your car 6%
on student loans and 20% or more on credit cards the best way to handle this is to start clearing
off your loans early in life start with credit cards or any other loan that may have the highest
interest rate debts can be a burden which you will definitely want off your back as soon as possible
instead of just making the minimum payment off your loan make additional payments to reduce the
whole amount faster in the long run you will end up saving a lot more money 8 your network it's not
always about money and now in your 20s you should focus on building a strong network of people who
can push you to the next level attend meaningful events join useful clubs socialize with people and
build your online presence most people don't think building a network is important but they don't say
your network is your net worth for no reason do you have a proper LinkedIn profile these are the
simple things you should be creating you can easily get a better paying job change careers
identify opportunities or even get contracts for your business through your network as you build
one ensure you have a mentor to guide you through in your 20s you may not be able to invest in all
these options that ago but you should ensure you pick at least four of the options we provided a
great rule of thumb to follow is as your income grows so should the amount you invest building
wealth and investing is best done while you're still young Warren Buffett even said he wished he
had started investing earlier and he was 11 when he started thanks for watching that's all we have
for today let us know which options you like best from our list leave a comment the first five will
get a response from us share the video with your friends and family in their 20s and finally don't
forget to give us a thumbs up and if you haven't subscribed yet what are you waiting for hit that
subscribe button and enable notifications with that said I'll see you in the next one