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8 Investments Everyone In Their 20s and 30s Need to Make

We all know that the earlier you invest, the easier it will be for you in the future. Investing early is a surefire way to grow your wealth. The sooner you start, the more time your money has to grow and earn returns through compounding. We have all heard that typical example of a person who invests $100 a month at age 25 vs another person who invests $100 a month at age 35. Because of Compounding Interest it is a huge advantage if you start investing early. A chart is shown below:

Business Insider/Andy Kiersz

Investing in early is a good idea because compound interest can be invested earlier resulting in exponential growth faster! Pretty much, if you invest in early, it will be easier for you to make more money. The earlier you start investing, the more money you will make in the long-term. Compounding is the most important factor that makes early investing worth it.

Here is a list of 8 investments that everyone in their 20's and 30's need to make:

  1. Index Funds

  2. Real Estate

  3. Education

  4. Startups

  5. Growth Stocks

  6. Dividend Stocks

  7. Commodities

  8. Cryptocurrencies

Index Funds

Index funds are a great investment for young adults. An index fund is a type of mutual fund that invests in stocks, bonds, or other securities to achieve a market rate of return. Index funds are passive investments because they track an index rather than try to beat the market. They are a low-risk and low-cost investment that will give you a higher return than the average investor. Index funds are also diversified, meaning that you are not putting all of your eggs in one basket.

Real Estate

You will always hear everyone say: “It's never too early to start investing in real estate.” And its true, real estate investing for young adults is something that should be considered by anyone who wants to build wealth and become financially independent. It is the way that the typical person has built wealth over the past few decades. People have done so by buying themselves a home. This saves them on rental expense and there are many other benefits to homeownership. It is important to not buy a house that is too expensive for your budget. And consider buying an investment property prior to buying a primary residence. Rental properties are a great way to build long term wealth.


Education is an important investment for young adults. It is not only about the money you will be spending, but also about the time and effort you put into it. According to research, your 20s are the best time to study. It is the time where high level learning is the easiest to absorb. Acquiring education is important, but it is also important to understand that not all learning is an asset, some types of learning can be a hobby. If you want to invest in you education, be sure to learn a skill that can be monetized.


The startup world is a great way for young adults to invest in themselves and their own company. There are many different types of startups that you can start, so there are many ways to get started. You can start a business in your hometown or you can start an ecommerce brand online. Whatever you choose there are endless opportunities the startup world has to offer. It's never too early to take your idea and turn it into a reality.

Growth Stocks

Young adults have a long life and a lot of time ahead of them. This is what gives them a great opportunity to invest in growth stocks that have a promising future. Growth stocks are going to be one of the more risky investments, but they are also the investment that could generate the best returns. Because of the large risk of investing in growth stocks, it is important for an investor to have a longer time horizon when owning this type of investment. As Warren Buffet says: “Its not about TIMING the market, it's about TIME IN the market.”

Dividend Stocks

Investing in dividend stocks is a great way to build wealth over time. Dividends are the amount of a company's profit that the company pays out to its shareholders. Dividend stocks are generally considered more stable than growth stocks because they offer a steady stream of income. By owing a dividend stock, you can receive monthly payments just for owing the stock! Young adults should consider investing in dividend stocks because they can provide an excellent way to build wealth and save for retirement while still being able to live life and enjoy their early years. The best dividend stocks for young adults are companies that have been around for a long time, have strong fundamentals, and show no signs of slowing down anytime soon. They also need to be consistent with the investment objectives of young adults, which means that they need to be low-risk investments with high-yields.


Commodities are an excellent investment for young adults. They offer a diverse range of potential investment opportunities and they are not as volatile as some other types of investments. A commodity is a basic good that is interchangeable with other goods of the same type. Commodities can be traded with ETFs (Exchange Traded Funds) and can be a great hedge to some of the other investments on this list.


Cryptocurrencies are digital currencies that use cryptography to secure transactions and control the creation of new units. They are decentralized, meaning they are not backed by any government or central bank, but instead rely on a distributed ledger system. Cryptocurrencies are becoming increasingly popular with young adults as an investment opportunity because of the low barrier for entry and high returns on investment. Investing in cryptocurrencies is a risky venture. However, many young adults see it as an opportunity to make money off of their investments and possibly even retire early.

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which one do you think is the best starting point?

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