How to Invest Your Money in Your 20s?

Want to know how to invest your money in your 20s? I just started investing my money not when I am in my 20s but when I was 30 years old. I told my husband I am so luck because you introduced me about investing money when I am still young. I am 24 and my husband is 30. During this age (20s) I am so glad because I enjoy the benefits of ‘compound interest”.

If you are also in your 20s today and you are wondering how to invest your money, here is your simple guide. Believe me, not all people who’s age is 20s decide to invest. Most of them only wants to enjoy.

Best Way to Invest Money in Your 20s

The best way to spend your money while you are still young is through buying assets. Don’t belittle the effects of investing small amount of money. Investing in your 20s means you have a lot of time. In your 20s your best financial allies are time and compound interest.

Imagine if you invest $200 per month in stocks, that earns 8% per year within 40 years you will approximately 600,000 dollars in your retirement.

CC BY Susana Fernandez FLICKR – Million Dollars

In your 20s, while you are still young invest in high risk type of investments like stocks. When you hit 30s, 40s and 50s, your risks appetite change. See this asset allocation strategies to learn more about how should you distribute your money.

For more guidance, read personal finance for 20s here.

Almost financial experts says that the younger the investor is, the higher he can take risk. So, in my conclusion, in your 20s, you should invest in high risk, don’t be afraid because you have more time to recover in case you experience loss of investment capital. I hope you liked this page, share this with your friends!

What about you? What do you think is the best investments for people who’s age is at 20s? Leave a comment now!