Investing in Your 20s: Setting Your Financial Choices

At 20 years old, you have a unique position to set yourself up for success in the future. As you begin building your career and earning an income, you can start investing in different opportunities that will help you grow your wealth over time.

If you’re not sure where to start, here are different investment opportunities to consider to help you get ahead financially in your 20s.

Stock Market

One of the most popular ways to invest for young adults is through the stock market. It involves buying individual stocks or investing in a stock fund that will allow you to put your money into a diversified portfolio of stocks and other securities.

Getting started on the stock market is relatively simple — you can either open an account with a brokerage firm or invest through a financial advisor. However, it’s best to do your homework and research different stocks before diving in, as many factors can influence your success in this investment strategy.

Many tend to invest in the stock market for the long term, as success over time can get impacted by many factors such as company performance, economic changes, and inflation. So, it’s not wrong to take it slow when first starting.

Real Estate

Whether you are looking to purchase a home or invest in rental properties, there are many ways that real estate can help you build your wealth. For example, owning a home can provide you with equity that you can tap into later in life while renting out properties can provide you with a steady income stream.

Investing in real estate can be a more hands-on investment than other options, as you will need to manage the property and ensure that it is taken care of properly. Nonetheless, it’s a lucrative investment strategy that can yield good returns if you find the right opportunities.

You will need a significant amount of cash upfront to invest in real estate, so it’s important to consider whether you have enough savings and income to support this type of investment. However, if you want to leap into the real estate market, many financial institutions offer affordable home mortgages with low-interest rates to help you get started.

Mutual Funds

A mutual fund is an investment that stockpiles money from investors and invests it into a portfolio of securities, such as stocks, bonds, or cash equivalents. Unlike the stock market, mutual funds get managed by professional money managers who decide where to invest the fund’s money.

Investing in a mutual fund is a good option for young adults who want to grow their wealth but don’t want to put in the time and effort to manage their investment portfolio. It’s important to note that mutual funds come with fees and expenses, so be sure to research different options before deciding on one.

Although mutual funds might not offer the highest returns, they are a great way to start investing and can help you build your wealth over time.

a businessman shaking hands with another businessman

Angel Investments

Angel investment is when individuals invest their own money into a company or startup they believe in. This type of investment can be riskier than other options, as there’s no guarantee that the company will be successful. However, it can also provide the potential for higher returns if the company does well.

If you’re considering making an angel investment, it’s essential to do your due diligence on the company before investing any money. You should also have a solid understanding of the risks involved, as you could lose your entire investment if the company fails.


Cryptocurrencies, such as Bitcoin, Ethereum, and Litecoin, have become increasingly popular over the past few years. These digital assets use cryptography to secure their transactions and control the creation of new units.

Cryptocurrencies are not regulated by any government or financial institution, making them a more volatile investment than other options. It can be a risky proposition, but it can also yield high returns if you pick the right coins and understand the market.

To start investing, you will need to create an account with a cryptocurrency exchange, so do your research beforehand to find the best platform for your needs. Nonetheless, you can mitigate some risks and set yourself up for success in this exciting new market.

Many investment opportunities are available to young adults, each with risks and rewards. Depending on your goals and tolerance, you can choose from various options to grow your wealth. Stock market trading, real estate investing, mutual funds, startup investments, and cryptocurrencies are all viable options that can help your financial future. With the proper planning and research, you can find the right investment strategy for your needs and start building your fortune today.

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