How to invest money wisely in your 20s?

In this text, we give the answer to the question of how to invest money in your 20s. If you are reading this article, we assume that you are a person in your 20s or that someone close to you is of that age and you think that this would be of great use to them, so you plan to recommend this text to them or share it with whoever needs it. The first thing you are probably wondering now is “How do I invest in my 20s when I work for the minimum wage and I can leave aside little money?” True. When you are young, you usually earn less, and only with time do your incomes start to grow but. On the other hand, the cost of living will never be lower than in your 20s. It is all a matter of proportion - if 10 % is the maximum you can set aside from your income now, that is fine. When your income increases, that 10 % will be worth more. What we are talking about also refers to parts of the world where young people live with their parents for a long time and only in the 30s do they start families and become independent. However, even those ‘more mature’ than ‘spoiled’ ones in these parts of the world, who manage to settle down already in their 20s, will also have lower living costs then than in the next decade of their lives. As you develop and grow, so do your needs. Later, the needs of your children and their needs grow, too, which all costs, so it is always a good idea to start saving and investing at an early age. Another question that often arises is “What if I fail?” So what? When you are young, that is a proper age to fail, that if a failure has to happen. While you still have time for a bunch of changes, for ups and downs It is much easier to make a mistake when you are, let’s say, 25 and have your whole life ahead of you. If you learn something from that mistake, it is worth more than you lost. Believe us, you will make mistakes with 35, that is all normal, but then, they will be more expensive. The third thing that probably bothers you with this whole idea is “How do I get started?” Learning something basic about investing is always the best way to start as it will help you master the rules of the ‘game’. Believe it or not, the most successful investors in the world perceive money as a game and they do not get satisfaction with the money itself but with the art of creating it in various circumstances. If you are a beginner, there are various YouTube channels where you have free content through lessons on investing in, e.g. the stock market, from bottom to the top. Explore them, google them… How should a young person invest money in their 20s? Pay yourself first Yes, you heard it right, first set aside a portion of the salary for yourself and then pay the expenses. Most people do the opposite, so by the time they get their turn, nothing is left. It does not matter if you earn 300, 500, or 1,000 euros/dollars - if 10 % of your salary is how much you can set aside for investing, first put that aside and then spend the rest. Only when you do that, you will see that you can live equally well with the remaining 90 % of the budget. Shares This is something that everyone can afford because there is no minimum of shares that you have to buy. You can buy one share, or 35, 42, 107… There are also clips on the Internet about how to buy shares. Young people have the most valuable resource in the world at their disposal, and that is time. You can keep some shares for 10 years, you will still be young and the chances that your investment will increase are high. Even if you have a crisis and a market crashes in a 10-year period, that time interval is long enough to give you room to emerge as a winner. Here are examples of the increase in the value of shares of some well-known companies in the percentage growth for 10 years: Walt Disney 300 %, Nike 500 %, Microsoft 825 %, Apple 1,150 %, Amazon 2,700%. Personal fund Let’s say that you started working at a very young age and that you are lucky enough to have a great employer who pays you all benefits on time. Regardless of that, no one can know for sure what awaits them tomorrow and what pension they can hope for, or what the pension system will be like until they get to that age. Therefore, any personal old-age savings fund is better than none. Call it whatever you want: private pension, life insurance, etc. We called it a personal fund because it is exclusively your personal money that you invest for a long period of time in a way that does not burden you, and which gives you great security. Today, there are many options where that invested money can grow over the years through interest on savings, with a portion of the profit attributed to you. The younger you are, the better the conditions because there are simply more years ahead of you. Explore what options are offered to you and find the best one for you as soon as possible. “Force majeure” fund It is ideal to find a combination between investing in a private investment fund and setting aside some cash. They don’t say “Cash is king” for nothing. You can put most of the budget, that you have set aside for these purposes, in the official fund and have a smaller part always available for personal liquidity. You never know when an unplanned expense will arise: computer repair, going to the dentist, car service… That is why it is never a good idea to invest everything so as to jeopardize liquidity. Personal growth This is the thing that will probably pay off the most. As we have already mentioned, you will hardly ever have more time for yourself in your life than in your 20s and you should make the most of it. Whatever you do, take a little more time to improve yourself and your knowledge and skills, and you will be able to charge for that in the near future. When times of crisis and recession come, and they come occasionally, millions of people lose their jobs. Who never worries that something like this will happen to them? Those who are irreplaceable. And these are the people who have some specific knowledge and skills without which the group in which they work collapses. Be that person! Of course, when you are in your 20s, you are more attracted to spending money on parties, travel, liquor, betting online at bookmakers with various payment systems listed by link, etc… We all know someone like that. Many of you are that person right now. Well, that person tells you to learn from his/her mistakes, and that with a good plan you can do both because the 30s are right around the corner, they will not hesitate to charge you everything.