How to Successfully Start Investing in Your 20s

If you think investing in your 20s is too young—think again.

The longer you invest, the more money you’ll be able to earn through compound interest.

There are multiple reasons to invest young, but if you don’t know how to get started, you’ll get stuck in analysis paralysis. We’re here to help you create a plan to get started successfully.

Continue reading as we show you the best ways to invest money in your 20s!

Budget to Spend Less Than You Make

Before you can start investing, you have to learn how to spend less than you make, so you have money left over.

Many people don’t even have a budget—they just look at their bank account to see if there is money or not.

Create a budget that gives you a certain percentage of money to invest each month. Having money to invest each month consistently will give you the best results. Even if you don’t invest a lot of money, it will add up over the years.

Create an Emergency Fund

An emergency fund is essential to avoid falling behind on bills, being stuck without transportation, and other problems.

Even having an emergency fund that is $1,000 is better than not having anything to fall back on.

If you have credit cards, it can be tempting to use them as an emergency fund, but that is almost certain to end in disaster.

Put Money Into a Retirement Account

While retirement might seem like a long time away, it’s important to start saving for your retirement now.

That way, you’ll be able to enjoy more compound interest—plus, you can enjoy tax deferment until you start withdrawing from your retirement account.

Look Into Real Estate Investment Trusts

What’s the most popular investment for millennials?

The answer could be REITs, or real estate investment trusts, since they are an easy way to break into real estate investments without breaking the bank or having to build up your credit.

Real estate is a great growth investment, but sometimes it is difficult to get started when you’re young. REITs could be the answer you’re looking for as you work to add real estate to your list of investments.

REITs make it possible for you to hold a portfolio of commercial properties with minimal risk since the real estate is usually different types of real estate in different geographic locations.

Become a Pro at Investing in Your 20s

Now that you know more about the best investments when investing in your 20s, you can start to build your wealth.

Building wealth at a young age will help you secure your financial freedom and retirement.

Do you feel like you need more help? Our site is full of articles that can help you with your finances and more.

Browse our site, find your favorite finance-related articles, drop a bookmark, and come back soon for more great articles.

Wealth Creation and Saving Strategies | OnMoneyMaking