It’s never too early to start investing in your future. As a young adult, there’s a world of opportunity at your feet. By making the right investments early on, you can enjoy a comfortable, financially stable life. The question is, what should you invest in and what mistakes do you need to avoid?
Choosing the best investments
There are a lot of things you can potentially invest in. The main thing that’s going to impact where you should be spending your hard earned cash is how much you actually have available. For example, seaside properties have been dubbed one of the best investments for young people. However, they are notoriously costly so you do need to have a fair amount of capital already behind you for this type of investment.
If you’re looking to start off smaller, the following are just some great ideas:
- Green funds
- Treasury bonds
- Certificate of Deposit
Green funds are a particularly clever idea. By investing in eco-friendly businesses, you’ll do well in the long-term. Due to global warming, there’s a lot more focus on protecting the environment. Green business are only going to become more important and lucrative as time goes on.
IRA’s, treasury bonds and Certificate of Deposits are all focused on long-term rewards. Treasury Bonds are particularly recommended as return is slow, but they can provide a lump sum in 10-12 years which could be used to buy a house or car. So, as you can see, there are some great ways to invest now to protect your future.
Mistakes to avoid
The thing about investing is it doesn’t come without risks. When you’re young you can afford to take a lot more risks than most. However, it’s still a good idea to avoid making costly mistakes if you can!
Firstly, it’s vital you protect your investments. Failing to prepare and plan ahead could end up costing you everything. Choose a reliable company such as Sanlam Private Investments to take over the management of your investments.
Another common mistake is not investing enough. You don’t have to break the bank, but the more you can invest the better! If you make just one investment, make it a retirement fund. Starting out with £1000 when you’re 20, could turn into £26,500 by the time you’re 40 if it has a 5% interest rate. That’s a massive return on investment!
Overall, investing while you’re young is a fantastic idea. It will pay off in later life, helping to set you up for a much better, more financially secure life.