Looking at ways to invest? Below are some good assets to invest in while you are in your 20s.
There’s no better way of building wealth than starting early. This is because investments require significant time to grow.
Therefore if you’re still young and looking for unique investment opportunities, you’ve come to the right place.
This article will show you assets to buy in your 20’s. These have been proven to yield good returns on investments.
Hence, the need to tap into the opportunities they present.
What’s an Asset?
Before we get into details, it’s only fair that we clarify what an asset represents.
An Asset is essentially anything tangible or intangible which is considered as representing value of ownership. These can easily be converted into cash.
In other words, assets are considered valuable due to their capacity to grow wealth.
However, for anything to qualify as an asset, it must be generally accepted as having value.
List of the Best Assets to Buy in your 20’s
There are lots of assets that can be bought. However, not every asset is ideal for everyone. Hence the focus on specific types of assets.
But what are these?
Read on as we list several of such assets shortly. Because this period is one of the most productive time of your life, these opportunities should properly be harnessed.
This is an important asset you must have in your 20s to make money. There are lots of essential skills to learn. A few of these include;
i. Financial Literacy
For whatever reasons, this essential skill has been left out of formal educational curriculum.
As a result, lot’s of people have little or no financial knowledge. This has adversely affected their economic life. You can avoid this trap by researching and reading literature on financial literacy.
ii. Spending your Time Wisely
Time management is a vital skill you should have. This is because how you spend or manage your time in your 20s largely determines how much progress you make later in life.
As such, associating with the right people, spending time on important activities etc will benefit you immensely.
As you grow older, you’d find out that things and events don’t usually go as expected. As a result, you’d need the mental toughness to hang on. Persistence is a major ingredient to success.
Through resilience, you’d eventually excel. These and several other skills are essential assets you should posses in your 20s.
REITs (Real Estate Investment Trusts)
This is an opportunity you can take advantage of in your 20’s. These have been consistent in generating steady profits over several decades. Hence its reliability as an asset worthy of investing in.
With REITs, young people are able to overcome the problem of unaffordable real estate investment. This gives you the freedom and advantage of owning a part of several choice real estate properties.
Debentures and Bonds
Issued by businesses and governments, this is an asset you can easily invest in with reliable returns on investment. Debentures and bonds are capital generating assets. You get an interest yield for funds invested.
Such interest payments are done at scheduled times of the year.
This is an additional vehicle for ideal asset procurement in your 20’s. You get the chance of putting your investments in a reliable pool of funds with high return potential. This is a strategy for wealth creation as businesses access such funds for further expansion.
You and other investors get a handsome return on investment after a specified time period.
Hard Money Lending
Hard money lending is a situation where money is loaned and backed by a collateral. In the event that the borrower defaults on the loan issuance terms, such assets are confiscated and the money recouped.
Under this arrangement, loans are issued with interest.
This way, you can deploy your money to profitable ventures. This in turn grows your investments with time.
Certificates of Deposits (CDs)
This is an authorized investment vehicle issued by financial institutions. Whenever you by a CD, you are under an agreement for such investments to be locked up for a period of time. This can vary depending on available options.
Typically, such times range from a minimum of 3 months to as much as several years. The longer the period of time invested, the higher interests you earn. This is also a low-risk investment that guarantees significant returns.
Getting Rid of High Interest Debts
High interest debts are like chains that hold you captive. In other words, no matter how hard you try, your assets will amount to nothing.
Thus, getting rid of these debts becomes necessary. But how do you do that? By paying these off aggressively! You can set aside as much as half your income to loan repayment.
When the loan is eventually paid off, you can re-channel this into other investments.
Learning to Live Below your Income
This is difficult for most people.
However, mastering this allows you grow your wealth. Living below your income means having surplus to save. But you shouldn’t be saving for the sake of saving. This should be done for the sake of investment.
Developing this attitude eventually grows your income. You get to eventually become financially free later in life.
But it begins in your 20’s.
Mapping Out a Retirement Plan
An often overlooked area is planning for retirement in your 20’s.
While the above steps are essential, it’s best to also have an end goal in sight. This is why a retirement plan enables you strategize effectively. It gives you a sense of accomplishment to be able to stay the course.
These are tangible and intangible assets that can be bought. While some can be bought with money, others are bought with time investments. The entire goal is to have and live your dream life much later.
This is better appreciated when you take into consideration the fact that strength wanes with time.