How to Invest in Your 20s to be Wealthy in Your 30s
The most important thing you can do to set yourself up for success is to create income-producing assets. These assets can be a combination of many things: a skill, business, or real estate just to name a few. All of these assets will build up extra income to be able to invest in your 20s.
In this blog, we will be breaking down how a skill and a business can be used as income-producing assets.
How can a skill be an asset?
One skill we all have in common, or at the very least are trying to develop, is trading. Once you develop this skill, you can use it anywhere in the world at any time to help you produce a positive cash flow to then invest.
Some skills take longer than others to develop, but generally, once you develop a skill it sticks with you for the rest of your life, which makes this a life-long, income-producing asset.
As always, you should weigh the risk to return ratio. If you have a $100,000 trading account and can use that to generate a monthly income of $10,000–15,000, then this would be a high income-producing asset.
A business can also be an asset, even if it produces no income.
You read that right. Even if your business (specifically an online business) generates $0 in income, it is still an asset.
One example of this could be an Instagram page.
When you first meet someone, chances are they will look you up. If they look you up on Instagram and don’t find you, that might be suspicious to them. By having an appealing Instagram page you are allowing people to learn more about you, or what you do, without the need for a direct line of contact.
This is especially important if you are going to one day sell a skill or service-based business. You don’t have to monetize your page right away, but just by having this page, you are allowing people to connect with you and build a larger network.
One of the cool things about this is you don’t have to spend money to build this specific asset, only your time. Then once you are ready to launch your online business, you already have the networking and following to be successful.
Check out our YouTube video going over this same topic for a more detailed explanation.
In conclusion…
Being able to invest money in your 20s is hard enough. Now with the repercussions of the pandemic starting up, it is going to be even more difficult to save money. Having a business or a specialized skill is an income-producing asset that can help change your life forever.
