20s Checklist: Invest, Invest, Invest


For many people, getting rich is the ultimate dream. It’s also not uncommon to hear that one of the best ways to gain wealth is to invest and to do it as early as possible. They say investing in your 20s is a smart move because time is ticking, which means, in investors’ language, compound interest is ticking.

Investopedia illustrates the “magic of compounding” by pointing out that when a person invests $10,000 in their twenties, they’re going to have $70,000 by the time they’re 60. Whereas if they invest it at 30, they’re only going to get $43,000.

You probably think you’re young, you have debts and you’re still not earning a lot. Don’t worry as there are smaller ways to invest, like paying yourself first or honing your craft. You don’t have to buy land for sale in places like Whittlesea, Victoria until your late 20s, but real estate is undoubtedly an excellent investment, too.

Pay yourself first

“Pay yourself first” is a famous line in the finance world. Ultimately, it means to set aside a portion of your paycheck and deposit it to a savings account — before everything else. The purpose behind this is to guarantee that you save a specific amount regularly, reducing the chances of spending the money on other things and failing to save.

Moreover, paying yourself first is not exclusive to savings only. It can also mean putting money in a retirement plan, an emergency fund or other accounts with long-term benefits.

Real estate

Real estate property

Land is a finite resource. No one can create it, and it doesn’t emerge on its own. Compared to stocks and interests, this kind of investment is tangible and very unlikely to be stolen away from the owner. With the increasing progress happening in cities all over the world, the value of land continues to increase. In line with this, investing in a house can help secure your future, especially if you can see massive changes in your lifestyle in the future.

This type of investment requires an enormous capital, though. Saving up before acquiring a property is advised to avoid having debts. Real estate companies make purchasing a property more attainable through land-for-sale packages.

Hone your skills

Your twenties is a time of self-discovery. A quarter-life crisis is just around the corner, so, perhaps, your 20s begins with a question about your real purpose in life. This decade can also be about switching to a new career path or moving to a new place to explore and get to know yourself better.

Adam Brotman, an author, designer, filmmaker and musician, loves the phrase “Hone your craft” — and you should, too. Being good at what you do does not only make you feel better but also helps attract more clients because of the quality of work you put out into the world. With more clients come more projects, and more projects mean more money flowing in.

There’s no single path to financial success, but utilising money and finding ways to make it grow is a step closer to it. It’s good to start early by taking little steps.

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