In your early and mid 20s, you often have plenty of disposable income. You are able to work long hours without having to rush home to children or pay out for extortionate childcare fees. You have money to burn, but if you are wise with your finances, you won’t. Sure, enjoy the money, but do not be tempted to blow it all on things that will not last. One thing that savvy youngsters often do not think about is how to invest their money. Investments sound boring and complicated and for older people. It isn’t something that a young person does — or is it? Perhaps you have not put any of your money into savings and think that this would stop you from investing. Here, we debunk some of those myths and look at some of the sensible and worthwhile investment options that you can make — or advise others to make — in your 20s.
By Team Savant
Image: Dmitry Demidko
Property
Property is always a popular option, and that’s because it almost always gives you a good return on your investment. It is amongst the most common forms of investment amongst younger people and that is because it is the most accessible. There are government schemes in many places to help young first-time buyers jump onto the first step of the property ladder. 2021 may be a good year for wannabe buyers, with lowered interest rates and low house prices. A good mortgage loan calculator will give you an idea of how much you can borrow for your house purchase.
One way of investing in property if you do not want a second home or to become a landlord or landlady is to become a property flipper. This involves taking properties that are not necessarily in the best condition, spending some time and money on improving it and upping the value, and then selling it on for a profit. If you can do this successfully, you can earn a significant amount of money in a relatively short time.
Cryptocurrency
Cryptocurrency is still relatively new and while it is showing signs of being a lucrative form of investment, it should be taken with some caution. A cryptocurrency is a form of digital currency that has taken the world by storm and has been hailed as the future of currency. One form of cryptocurrency that you may have heard of is Bitcoin. A few thousand will buy you a single bitcoin, and it is increasing in value so rapidly that in five years this could easily be twice the value. As far as passive investment options, it is pretty good going. If you’re worried about potential fraud when it comes to cryptocurrency trading and want to conduct your operations securely, SoFi Invest is a secure platform that ensures your holdings are protected against theft. What is more, With the SoFi app, you can buy crypto alongside the stocks, fractional shares, and ETFs that you’re already trading.
Stocks and Shares
Stocks and shares are one of the most traditional and well-known forms of investment. You probably think that to benefit from the stock market and from trading shares, you need to be an expert on various companies and the economy. This is not the case, but you do need to put the effort in and approach it properly.
To start off with, you do not need to do it all by yourself. In fact, it is advisable to not do it by yourself. The stock market can be complicated so it is a good idea to think about getting a stockbroker to help you to navigate the process and the system. They will make sure that you do not go off track with your financial investments and that they are viable for your financial situation.
Brokers can give you an idea of when is the best time to buy and sell, which is crucial if you are hoping to make money. Furthermore, your Broker can also assist you in the oil wti price live and investing in the oil markets, which can be a very profitable venture for the savvy investor. Since the price of West Texas Intermediate (WTI) crude does not stay the same, following its live prices can increase your chances of success. WTI crude prices depend on various factors, including current demand, production cuts, and geopolitical events. Knowing the history of these relationships can help the investor gain insight into future moves in WTI oil prices. Therefore, it is wise to monitor the oil wti price live to determine the current economic and industry trends, know the market history and analyse technical indicators to evaluate where WTI oil prices could go. Taking advantage of real-time oil price fluctuations has proven to be lucrative for many investors in today's markets.
If you do not have much in the way of finances to plug into stocks and shares, do not worry because it is still possible to dabble. Penny stocks, for example, are priced so that almost everyone can access them, and they are low in risk so that you do not have to worry too much about losing significant amounts of money to an investment.
Forex
You may have heard of this floating around on the internet, and that is because it is another one that is accessible to everyone, no matter how much money they have to play about with. You can invest as much or as little as you like, depending on your financial status. When it comes to Forex, it is important to remember that you are trading currencies, so you do need to understand how these work and what can affect them. By having an understanding of what makes them rise and fall can help you to make a real killing.