5 Key Investments To Make While You’re Young

Investment is often the last thing on your mind as a young professional navigating the adult world, but it shouldn’t be. With the right advice and guidance, you can make the most of your spare cash and make a significant return on investment over time. But with so many options to choose from, it can be difficult to know where to start. Continue reading to familiarise yourself with 5 key investments you should be getting involved in while you’re still young. 

1. Real estate

Real estate is one of the most common investment options for a growing number of young people. It is a growth-type strategy. This means that your finances are guaranteed to grow as you get older. A real estate investment trust is a great opportunity to amass an impressive portfolio of real estate properties over time. By diversifying your investments, you are much more likely to make a greater profit in a fraction of the time than if you had splashed your cash on a single investment property. You can choose to invest in a real estate investment trust even if you only have a couple of thousand pounds in savings. This makes it a great option for young people or those with a little less cash to spare. Real estate investment trusts also do not require the same degree of upkeep and management as single investment properties so you can relax knowing you are taking the appropriate steps to grow your finances with minimal involvement.

2. Luxury watches

Watches have emerged as an up-and-coming investment for a growing number of young people. They rarely depreciate in value and require little to no maintenance or upkeep. By marketing to the right buyer, watches have the potential to fetch millions at auction. Knowing exactly what you are looking for is a great way to grow your collection and make a significant return on investment. Well-known brands and models, such as the Rolex Lady Datejust, have been known to surge in value over time and with demand almost always outweighing production, there will always be a market for luxury timepieces. Before you invest in luxury watches, however, you must do your research. Approaching the industry with no prior knowledge or experience can lead to you making a number of costly and time-consuming mistakes that can leave you out of pocket. Familiarising yourself with common mistakes and how to avoid them ahead of time can save you time and money in the long run.

3. Cryptocurrency

The cryptocurrency world has exploded in recent years with more and more young people getting involved with this trend that is clearly here to stay. Recent technological advancements and the power of social media has made it easier than ever before for those with no investment experience to shovel their spare cash into cryptocurrency. There are a number of different cryptocurrencies to choose from. These include Bitcoin, Ethereum, Dogecoin, Ripple, Litecoin, and Primecoin. One of the main benefits of investing in cryptocurrency is that it requires little to no background knowledge or experience. With the right advice and guidance, you can take small steps towards growing your net worth at a steady pace. Some cryptocurrency providers also allow you to buy and trade automatically. This prevents you from having to keep an eye on the market at all times and allows you to make as much money as possible with minimal effort or involvement.

4. Retirement fund

By getting a head start on your retirement fund while you’re still young, you can take control of your finances and protect your future. It is no longer the responsibility of the employer to take care of their employee’s retirement fund. Young people must make recurrent contributions to their own retirement fund whilst they remain at work. As humans evolve to live longer and wages fail to keep up with inflation, it is becoming more and more difficult to secure a solid pension. Young people can tackle this problem ahead of time by growing their own retirement fund. There are a number of different methods and platforms available to help you make a starting contribution. You must weigh up the pros and cons of each before deciding whether or not you are likely to benefit from such a scheme.

5. Higher education

Investing in higher education can enable you to study your chosen subject at length and enhance your career prospects. With a growing number of people deciding to go to university and get a degree, the workplace is becoming more and more competitive over time. It can have a number of wide-reaching benefits for you as well as your finances. You are not only investing in higher education but your own future. 

Investing can be a great way to build wealth while you’re still young. By knowing how and where to begin, you can expand your net worth and safeguard your future today.