7 Rules for Investing in Your 20s (best way to invest when you're young)

Investing in your 20s is the best...I repeat...BEST thing you can do to set yourself up for success.

When I was 20 years old, I was broke.

I didn't know anything about investing, I didn’t know what a mutual fund was, I didn’t know how to invest in the stock market, I barely had $100 to my name.

By the end of my 20’s I had paid off all of my debt, I was investing in a 401K, I had maxed out my Roth IRA, I was on top of the investment world. I had it all figured out.

How did I do this? I found the 7 rules to investing in your 20s.

Most people assumed that since I was a finance major I should know about investing. The truth is they didn’t teach you that in college. When I started my career, I didn’t know how to invest. But I got real world experience and knowledge when I started my career as a financial advisor.

I started investing with as little as $25/month. I should have started with more, but I felt good with what I was doing. Those first mutual fund investments taught me how to get started in my 20s.

So let’s take a look at those 7 Rules:

00:00 Intro

02:40 ➡️ 1. Just freaking start - It doesn’t matter where you start investing - just START somewhere.

05:28 ➡️ 2. Respect compounding interest - Many people do not understand or appreciate the power of compounding interest. Let’s look at an example at 20 yrs. old investing $300/month with 8% return - you will have a one million dollars by the time you are 60. 💰 At 30 yrs. Old with the same investment you will have $440,445.

07:03 ➡️ 3. Uncover those golden eggs - When it comes to investing you only know what you know. Until you actually start investing you are not going to know what is out there.

08:38 ➡️ 4. Choose tax-free status - This contradicts what Dave Ramsey will tell you. I suggest that you start with the Roth IRA vs. the 401K. With a Roth IRA, you have to open your account and choose your investments (you will learn more).

10:20 ➡️ 5. Invest in your number 1 Asset - That number one asset is YOU. Invest in yourself. You can start this by reading books, attending conferences, etc.

12:35 ➡️ 6. Understand the power of the side hustle - Do you want to be in control of your future? That is what the side hustle can give you. It doesn’t happen overnight, but with work it will happen.

13:58 ➡️ 7. Do what the wealthy do - When you start in your 20s this might be tough but one way I started was opening a self-directed retirement account. The wealthy invest in real estate. 🏠🏠 You can do this with real estate notes or a platform like Fundrise.

It doesn’t matter where you are in your investment journey. If you are a rookie or if you have experience and want to learn more - if you are in your 20’s these are 7 rules that you can 10x where you are right now.

It is all about getting started!

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Видео 7 Rules for Investing in Your 20s (best way to invest when you're young) канала Wealth Hacker - Jeff Rose