They say your twenties are the best years of your life…having fun, making friends, growing up. At some point, you have to take a minute to pause, think about your future and lay the foundation for a long, financially secure life. Getting smart about money is the best thing you can do for yourself. Set goals and have the willingness to reach them. Here are some investments you should make when you’re young:
First of all, start building your portfolio. Consult a multitude of financial advisors before you really find the one that fits your needs. Sure, sitting on the money you’ve saved might sound like a great (safe) option, but making small educated investments here and there will actually help to increase those savings. Planning is the key word here. Take a step back, assess your situation and figure out what will work for your future and help you reach your financial goals.
Floods, fires and car accidents can cause harm to you and damage to your things, but if you have insurance, there’s one less thing to worry about. Again, assess your situation and figure out what coverage would be best for you. Where do you live? In a condo or house? Are you situated on low-lying ground (prone to floods)? What kind of car do you have? Making monthly insurance payments could be the difference between draining your account or keeping it secure.
Keeping your debt in check is one of the most important things you can do to stay financially secure. Unpaid debt is a growing weight on your shoulders and who needs that kind of stress? If you have debt, whether it’s from student loans or something else, put away money from each pay check that will go towards paying it off. Don’t let yourself get carried away with spending, because at the end of the day, material things are never worth digging yourself into a seemingly endless hole of instability.
Investments come in the form of clothes too, you know. It seems great to budget yourself into buying cheap shirts and thin jackets that need 4 other layers of clothing to actually keep you warm, but it really isn’t. Invest in yourself too! Buying a warm, quality (expensive) jacket is an investment. Buying a couple of well made shirts will always beat buying 10 cheap shirts that will fall apart after 3 washes. Eventually, all those trips to the outlet mall to replace your cheap clothing items will catch up with you, and debt is never trendy.
Riding a bike everywhere was fun when you were a kid, but you’re not going to ride a bike if you live in the suburbs but work in the city. Think about buying a car. Consider your options and what car will work for you. Any car will take you from A to B, but buying a car is a big deal and you really have to think about this one. Don’t go overboard, invest wisely.