Finding out how to save money is one of the best choices you are going to make in your life and what better time to do it than in your 20s? This list is meant to be as practical as possible based on the experiences of millionaires.
In this article, we are going to find out what are the best purchases that you can make to optimise your life, save your money, make you more money, and enjoy that sweet retirement sooner.
Image Source: Pexels
The first best thing to spend your money in is investing money to make more money through your career. There are many ways you can do this, depending on the type of job you are in. How about getting that ACRA (Accounting and Corporate Regulatory Authority) certification or CFA (Chartered Financial Analyst) that you require for your career in accounting or finance? As long as there is a will, there will be a way as becoming an insurance agent or real estate agent is practically free as long as you are committed to the agency that is willing to sponsor you. You can apply this to whatever you want to do, with the abundance of self-help books and the Internet whereby there are tons of websites or channels that can help you develop a skill in any trade.
If you want to go into business, then spend some money and go into that. Invest and always find opportunities to increase your first income which is so essential for the rest of your life. Afterwards, focus on maintaining that income and save your money so that you do not have to work for the rest of your life unless you love what you do.
Spending your time learning the property market is one of the best things you can spend on early on in your life. Early real estate purchases can change your perspective on investing and also the importance of due diligence; understanding what makes a real estate property worth it and being able to turnover into a decent profit. Understand what are the government regulations that prevent you from flipping properties and determine what your plan of action regarding real estates is.
Owning a property not only allows you to earn more money from the capital gains resulting from appreciation in the property price but also enables you to earn a regular income from rental. Ultimately, Having that additional several hundred to thousand dollars will give you an extra income that is sure to supplement your savings plan. In determining rental prices, location and proximity to the workplaces in combination with prices is everything. Find the right blend of value that you are happy with and start renting out the property that you purchase for investment purposes.
Do note that should you purchase a property that you intend to stay in will render it illiquid and unable to generate rental income. This means that it is hardly an investment but more of a liability that you will be purchasing. Hence, investing in real estate means buying properties that you are willing to rent out and intend to sell off in the future. Alternatively, you can go into REITs (Real Estate Investment Trusts) which is suitable for those with insufficient capital in the beginning.
Image Source: Pexels
This is purchasing a property with multiple units (Or an apartment with multiple rooms), and then you rent out the other units or rooms to cover the cost of the property. This enables you to live off the rent, which will slowly pay for the entire price of the property. Given that property prices generally rise all things equal, most of us will be able to make money out of this as long as we have sufficient funds to cover the initial investment.
It is worth mentioning that while this is one of the best methods to grow your wealth, not everyone has the initial capital to secure a loan or have an adequate credit score to do so. Additionally, it would be best if you also had the patience to wait for the right deal that makes sense to buy. However, the 20s is the best time in your life to invest your time and determine your strategy plan in real estate investments, so make the most out of it!
These are the best 3 things that you should invest your money in when you are in your 20s so that you can rest easy as you grow older. As the saying goes, do not work for money but let money work for you. Nobody will genuinely teach you how to manage your wealth but yourself, so do invest wholeheartedly into the craft. With that said, be sure to check out our other articles, and we wish you all the best in your pursuit of financial freedom!
Related to Save Money: