The 10 best investments to make in your 20s

What it means to ‘invest’ in your future is about so much more than financial matters: it’s not just how you spend your money but also your time and energy.

Tick off these things in your 20s and you won’t be wishing you had a DeLorean time machine to go back and change the past down the track.

1. A laptop.
As the digital nomad movement booms, many professionals that were once office-bound can now work from anywhere in the world and a laptop is the first step towards living the 4-Hour Workweek dream. Even if you don’t plan on running a business from a hammock, being able to work on the go will make your life a lot more flexible.

2. Travel.
Your 20s is the best time to travel. Forget the outdated idea that backpacking is career suicide; seeing the world will teach you a lot of things that are valuable in life, as well as in the workplace – a new language, independence, how to get along with different personality types.

3. Relationships
The people you meet at the start of your career will shape it. It doesn’t have to mean making awkward small talk at lame events that require you to wear a nametag, though. “Any opportunity – social or work – can be considered career networking.” “Anyone you meet could be the person who gives you your big break.” It’s also obvious why investing in people that get you, support you, challenge you and inspire you outside of work will benefit you throughout your life.

4. Health
“Over time what we put into our bodies and how often we move them has a huge impact on our risk of developing diseases, including cancer and diabetes, and also our weight.” 

5. Superannuation
C is for consolidate – the most important thing you can do for your superannuation in your 20s. You should also check that your employer is paying your Super Guarantee every quarter. If the company liquidates, you could be left short on your entitlements which will affect your financial situation later in life.

6. A savings surplus (no matter how small)
Avoid getting stuck in a cycle of credit card reliance and debt by having a small savings buffer. Saving 20% of your income, having a separate account for travel, and to never use a credit card if you don’t have the cash in the bank to repay it straight away. Habit is far more valuable than the amount of money you build up.

7. Taking a shot at your dream job
If your head tells you working as a chef will be poorly paid, physically demanding and mean terrible hours, but you still want to? Do it. Now’s the time, when you’ve got minimal financial commitments and plenty of time to change direction if it doesn’t work out.

8. Your business idea 
Similarly to a dream job, if you’ve got an idea you believe in, now’s the time to give it a try. ‘Fail fast, fail often’ is a phrase popular among entrepreneurs – it means you learn a lot when things don’t work out, so you’re more likely to succeed in the future. This doesn’t mean making rash decisions – bankruptcy is no laughing matter. But if you feel strongly enough about your idea or product, don’t be put off my people saying you’re too young or inexperienced.

9. Small financial investments
Even if you don’t have much spare cash, you can still experiment with investing in small ways. For as little as $25, you can lend a micro-loan to someone in a developing country trying to start a business via website Kiva. The repayment rate on Kiva is over 98%. If you do lose any money during your experimentation – fail fast, fail often, remember? There is always a lesson in any failure.

10. Your social media brand
If you hope to run a business or be influential in your industry in the future, start working on your social media presence now – it can take an excruciatingly long time to build up a following. Got a job interview? Social media is where employers look to these days – it’s your unofficial online CV. Pick the platform that’s right for you.

Speak with us to find out more about the types of investments that may suit you. Whether you are budget conscious or seeking to maximise your earning potential, we have investment options to help grow your financial nest. Feel free to contact us at info@centrawealth.com.au or give us a call at (08) 8231 4709.

Article reproduced from TheCusp.
by Erin Van Der Meer

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Zac Zacharia (Managing Director) has been assisting clients to create wealth and secure their futures for over 14 years.

He is also an accomplished presenter and educator

Co-authoring the popular investment book, Property vs Shares.