7 Ideal Investments That You Should Consider in Your 20s
Are you confuse about what ideal investments you want to consider right now? As young as you are, it is best to start investing your money for your future goals. This article will guide you on what type of investment you should examine to help become a good steward of your money.
- Real Estate
Real estate is for long term investors. As they said, good things come to those who have waited. If you can afford to buy a property with your extra money, do not hesitate in buying one.
The value of properties is increasing every year. Apart from that, if you want to have a passive income, you can lease the house and get monthly earnings depending on your customer’s negotiation.
In real estate, your initial investment can grow a lot higher.
2. Stock market
If you want to start investing with minimal capital, you can consider the stock market. In the Philippines, for as low as PhP 1000 ($20) you can start trading with stocks. However, if you want to thrive in trading stocks, you need to study some analyses, especially the financial and technical analyses. But less to worry because there are tons of basic stock investment tutorials available on the internet.
Even more, investing in stock market can be in short term and long term.
Like any other investment, learn and understand how it works. Never invest in something you do not understand.
3. Mutual Funds or UITF
Another type of ideal investments that you should consider is paper assets such as mutual funds and Unit Investment Trust Fund (UITF). If you don’t have enough time to study financial and technical analyses. You can go to commercial banks and companies that are offering these types of paper assets.
Mutual funds are managed by fund managers, who are skillful in investing in the stock market. When you buy mutual funds, you own shares and at the same time, become a shareholder of the mutual fund company.
UITF, on the other hand, is a type of investment that is being offered by commercial banks. Buying this allows you to become the owner of a fund unit.
4. Business
Starting your own business is a good investment. Obviously, it takes up to ten years for you to make your business thrive in the market. However, the process of starting your own business will give you not just earnings but also learnings that will help you to make better decisions.
Take note, globally known CEOs and billionaires started earning through their businesses.
5. Insurance
As young as you are, it is better to get insurance. Why? Because life insurance is cheaper when you are younger. This may not be that profitable relative to other financial instruments. However, getting life insurance is beneficial in protecting your financials for your family if you die prematurely.
Interestingly, insurances nowadays offer various policies depending on your life goals.
6. Talents and skills
Talents and skills are ideal investments that you should also consider. You can make money on the skills you are good at. If you love writing or you are good at graphic designing, you can be a part-time or freelance writer.
Today, it is ideal to have at least two jobs. A part-time job is also known as one’s side hustle. You can make money out of your spare time than doing nothing.
If you do not prefer using your spare time, investing in your talents and skills can be useful in your workplace. This can be an avenue for you to do your work diligently. Thus, you might get promoted and receive a higher salary.
7. Education
Like talents and skills, education will help you to become and do better in life. As they said, it is best to invest in yourself. Do not stop learning because this will help you to become successful, productive, and most importantly, attain a better quality of life.