There’s no better way of building a sound financial future than by starting young and early.

But how soon is early? Well, this is a relative term.

However, we’d take your late teens to late 20s as early enough. Hence, we’d focus on the best ways to invest money in your 20s.

At this stage, most people aren’t fortunate to get the guidance they need. You are lucky to be reading this as we discuss and provide powerful investment tips.


1. Clear Your Debts

Most people at this stage of their lives find out they’ve accumulated so much debt. This consists mainly of student loans.

At this point, you may think you can maneuver your way out of this. But this isn’t possible. This also prevents you from investing as you’d have to channel most of your earnings to pay off your debts.

However, paying off these debts is worthwhile as it frees up money for investment.

Because you need to invest in your 20s, a deadline needs to be set for clearing your debts. This should be taken seriously because the faster you clear them, the better.

2. Monitor Your Cash Flow

Your cash flow is an essential indicator of where your money goes to. This area is often overlooked as most people spend carelessly.

However, for closely monitoring your cash flow, you’d be able to identify ‘leakages’ that take up the bulk of your money.

To save up for investments, these need to be plugged. Hence the need to identify and limit your expenses to basic needs.

3. Investing

Having observed the above strategies, it’s expected that you’d have saved up “sufficiently” for your investments.

However, how does one know if they’ve saved up enough? Well, at this point, it’s expected your earnings wouldn’t be much. Nevertheless, $10,000 worth of savings or more will get you somewhere.

Therefore, this section will provide some of the best ways to invest such savings;

  • Investing in Stocks

At this stage of your life, you need to develop a culture of investing in assets. And stocks offer a steady and reliable way to grow your investments.

On the other hand, you need to know that this investment option can take a considerable amount of time for reasonable returns. Therefore this may just be the beginning of your investment journey.

There are times when stock markets crash. But this doesn’t occur frequently. Whenever you buy stocks, you own a part of real businesses and companies. This gives some level of confidence in their ability to grow their business.

  • Become a Software Engineer

Becoming a software engineer is one of the ways you can invest your savings. Software engineers are known to earn significantly higher salaries. This is coupled with the fact that their services are in high demand. You also have the freedom of working from wherever you choose.

This enables you to start a rewarding career with greater compensation for time spent.

  • Learn a Language

This isn’t an easy task for many but the benefits are much. By learning a second or third (or more) language, you are broadening your horizon.

Several types of jobs are open to multilingual people. You can also set up a language translation business. Learning a language also allows you to travel the world. Here, you get to see and appreciate other cultures as well.

  • Learn Artificial Intelligence (AI)

If you are looking for the tech opportunity of the future, this is what to focus on. Though at its early stages of use, artificial intelligence is set to find a wide range of applications shortly. You can become a part of it by investing in your education. This enables you to become highly relevant as well as a major player in AI deployment.

What more? Shortly, lots of economic sectors, as well as industries, will be applying such technology.

Peer-to-peer lending has found a lot of uses in the business world. Not only so, but it’s also set to even grow further in the next decade.

Therefore, this is a perfect investment opportunity you can commit your capital to in your 20s. By providing startups with funding, you get to earn significant returns. You only need to find your preferred P2P lending website to register and begin.

  • Cryptocurrency

Cryptocurrencies are considered currencies of the future. This is powered by blockchain technology and holds enormous potentials. You can invest both time and resources in understanding this technology.

To make it even more interesting, Facebook has recently announced its soon-to-be-launched online currency; the Libra.

This, in a lot of ways, is similar to cryptocurrencies. It will also add to deepening and diversifying electronic currencies.

  • Financial Education

For whatever reasons, financial literacy has been left out of mainstream formal education. This has resulted in little understanding of how money works.

Despite its wide use, only a handful of people understanding how it really works. This is a challenge as well as an opportunity to invest significant time in learning financial literacy.

Thankfully, there are books as well as videos that teach you the nature of money.

  • Learn Business Skills

Business skills are essential to operating successful business ventures. This is gotten through both formal and informal training.

Whatever the case, it’s an important skill you must possess if you must exit the rat race.

These are some of the best ways you can make money in your 20s. While some of these consist of skills, others have to do with knowledge and self-development. Whichever area your interests may lie, it’s good to start early. This guarantees your financial freedom down the line.