The Single Best Investment You Can Make in Your Twenties
Updated: Nov 7, 2023
Investing in shares or property is often considered a solid investment for any age, but that advice doesn't factor in the true complexity of investing while you're young. When you're younger such as in your twenties, often your money may have a better use. My philosophy is that what you can save in your twenties or earlier should be invested in yourself. Don't get me wrong, this strategy isn't for everyone, and a lot of people would benefit from investing at an early age. But if you're a driven person who wants to generate wealth and separate yourself from your peers, investing in yourself may be the single best investment you can make in your twenties. So what do I mean by that?
Investing in Your Business
If you could get a 7% return on investment investing in shares, imagine what you could get by investing in your own business that has the potential to 100x your initial investment. When you're younger, have fewer responsibilities and people that rely on you, it allows you to take on more risk than when you're older. Because you can take on more risk, it's a perfect time to start playing around with some business ventures. Keep in mind, you still need to respect risk and I would never recommend borrowing millions of dollars to start a chain of hotels because that's a huge amount of risk to take on at any age. But you can start buying some samples of apparel that you could start selling or try an online service-based business from something you're good at. There are an infinite number of business ventures out there and having the time and fewer responsibilities when you're young allows you to explore some of those options. So long as risk is still respected and given the consideration it's due, being young and investing some money into starting a business of your own could generate far more for you than investing in some good old shares.
Investing in Your Education
One key thing that can separate you at an early age is education. I don't necessarily mean a college education, although it can be beneficial and in Australia quite accessible. What I mean is pursuing knowledge in your own time about something you're passionate about and want to pursue. For me, it was finance, productivity, psychology, investing, and economics. I read as many books as I could, and still do about the topics. I did courses on Udemy, and Skillshare and spent time on YouTube learning from anyone I could. This put me in a position where I can share the knowledge I have gained, and my dream is to eventually build a business from it. Investing some spare cash that you may have into educating yourself is a fantastic investment when you're young and may pay more in life progression than share gains or dividends could.
Investing in Your Experiences
This one is a personal choice; I was fortunate enough to travel with my family while I was relatively young and because of that I spent a lot of my younger years saving. But if you want to and can put some of your money into a travel fund and explore places you haven't been and meet new people the return on investment can be massive. Experiencing new cultures and meeting new people can generate ideas and change your thinking about life itself. It may set you on a completely different path to what you think your life will be. I wouldn't recommend going into debt or using 100% of your savings to travel but if you can budget for it, it can be a great choice while you're young.
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