Investment

6 Best Assets to Buy in Your 20s

Investment in physical assets is a sure way to financial freedom. If you’re looking for top assets to buy in your 20s and diversify your portfolio, you came to the right blog

By

Oleh Shkinder

on

July 30, 2022

Table of Contents:

When looking to make a profit in your early 20s, more often than not you tend to look for fast ways to make quick cash right now and spend it straight away. Sometimes, you put money aside to buy your first car, start a business, or move into your own home.

As you grow up, new opportunities emerge, and you discover that putting money to work is another great way to make more money. One with a multitude of opportunities, flexible entry budgets, and various risk/reward ratios.

This is when you begin to explore the world of investing and look for the best assets to buy in your 20s.

How to Build Wealth in Your 20s?

Invest $10,000 right now for 7% annual interest, and in 10 years you’ll have $16K. Make an initial deposit of $1,000, and add $500 every month for 7% interest–in 5 years you’ll have $37K. 

In 10 years, your investments are worth $84,000. Impressive, right?


Make the smart moves

Win the game

If you wish to find top assets to buy in your 20s, dedicate 5-10% of your monthly income to investments, and see how fast your personal wealth will grow.

But first, let’s cover the basics that every investor should consider before starting to build your portfolio, the 4 cornerstones of smart investments for young adults:

1. Planning

If you want to accomplish your plans of getting rich, you need to learn how to own assets, and a roadmap that will help you get there. By setting your investing goals, allocating an affordable sum of money, and seeing the amount of time it takes to reach your goals get you closer to them than you have ever been.

With planning, comes motivation–knowing exactly what you need to do to achieve your goals is priceless. The rest is like in a Nike commercial:

Just do it

When planning your investments, there is no limit to how much of a monthly income you can spend on the best assets to build wealth in your 20s. But make sure not to overcontribute–usually, anywhere between 5% and 30% is a smart move that still lets you live without restricting your current way of life.

2. Diversification

Smart investors create diverse portfolios with various types of assets. Different positions can create an alternative source of income with minimum correlation to your current portfolio. A diverse portfolio with at least one alternative asset to buy in your 20s not only mitigates the risks but creates opportunities for better returns and a greater aggregation of personal wealth. 

As the old saying goes, “don’t put your eggs in the same basket”, and there is no better perspective than finances to prove the point. A growth mindset has been the trend for the past 10 years. Time to apply it to your finances.

3. Consistency

No player is better than a consistent player. No investor is better than a consistent investor. In early stages, try to constantly dedicate time to purchasing assets, and stick to your plans. After all, it’s nothing bigger than basic math–if you’re not contributing to your part of the equation, the result will always be false.

But keeping the money coming in regularly, and doing predetermined investment moves will always keep the gears of your wealth-achieving machine rolling to arrive by predefined time and date.

No stops for gas and maintenance required.

4. Analysis

Sticking to the same moves will only get you this far. Make the move to study the performance of investments in your 20s and correlate your calculations on a regular basis. Study from successful investments and redflag the bad decisions that you have made to sharpen your investing skills.

In addition to that, regular analysis of your finances and the markets is a guaranteed chance to learn something new and find new best asset classes, even on a monthly basis.

Learn to answer the ‘what are some assets I can buy in 20s’ based on your own data and experience.

Beware the risks

Plan your victory

Even with a diverse portfolio and constant analysis there are several investment risks that you should consider and learn to notice well before they happen:

It’s returns, not profits

No matter how much your investments are returning, don’t mix it up with work or business. These are two different ways to contribute personal resources in exchange for financial rewards.

Investments come from profits to generate returns in a long-term perspective. Don’t treat it as your primary source of income.

Do the math, stick to math

It can be tempting to ‘repurpose’ money for smaller things to invest en route to greater goals. But they will only deter you from your ways and stop the gears from rolling. On the other hand, achieving your goals according to your plans and calculations make great emotional contributions into your life.

Isn’t it awesome to know that you can achieve any goal?

All you have to do is add one to the other X amount of times. Keep your focus sharp, and a separate fund for stuff like that, and don’t let fleeting whims turn you away from the success you planned for and the wealth you deserve.

For this blog, I have picked several good assets to buy in your 20s. Some have a proven track record, others are just beginning to recommend themselves as promising ways to build greater wealth. Investment opportunities are very diverse, and each asset deserves the attention of smart investors as well as a spot in your portfolio.

Top 6 Assets to Buy in Your 20s?

When making this list, I tried to find markets that offer opportunities to start on a budget. We want to put the money to work, not put it aside to make it work later.

Real estate

Estate for rent

Of course, we’re not talking about buying a house, which is among the best investment assets to buy in your 20s. But young investors can become fractional owners of real estate property, or participate in a real estate fund. What’s the difference?

Flexibility. The trait of the century.

While REITs offer you to partake in a portfolio with a fixed number of assets, fractions ownership gives something that a fund won’t offer:

You determine how much and which property to invest in. And you actually become an owner of the part of the condo’s value, not getting a commission for using your money.

Another great news: you can start with as little as $500 and earn fractions of monthly rentals whenever you want to.

Where to do this: Fractional.App

Stocks & funds

Stock trading

Honestly, I don’t know where 2022 will end for the stock market. It seems that nobody does. What we know for sure is that the long-term perspective for stocks has always put them in the leaders among the best assets to own in your 20s.

The stock market has shown stable returns in 10-15 years, and will most likely continue to do so. So buying a few stocks should definitely be on your list of investments to consider.

After reaching retail investors, the stock market became an opportunity for young investors to buy shares of their favorite companies and grow along with the value that the company provides. Like growing apples, investing in stocks & funds can take some time.

But when the harvest comes, if you took care of your tree and watered it, you’ll have a tree full of sweet apples ready to be gathered.

Where to do this: Robinhood

Crypto

Crypto

Looking for good assets to have in your 20s? Bitcoin, Ethereum, and the company became major players in the retail investment market in the past 15 years. The innovativeness combined with accessibility and high risk/reward ratio attracted the attention of young and seasoned investors alike.

Oh, the roller coaster we’ve all had this year.

While short-term crypto sales are a risky venue, staking Ether, Bitcoin, or other established token is a good alternative to putting money in stocks and funds. In years to come, crypto is expected to take an invaluable part of our lives, so investing part of your finances in the future can also become a great alternative.

Where to do this: Binance

Startups

Startup

Crowdfunding is one of the best ways for startups to get money. In return, they promise to create great products and generate long-term profits for their early supporters.

While it may take some time to do the research and find the startups you wish to invest in, it is more than real to find a great project, talk to its founders, and find value in the innovation that they are about to bring.

By investing in projects that are important to you, you help shape the future for everyone to live in. And maybe even profit from doing this.

Where to do this: WeFunder

Collectible Cards

GeekDad

Something that only true fans should consider. The nearest I’ve ever been to collecting cards was a stack of Pokemon playing cards I had as a kid. But I know young investors who managed to turn their collector’s passion into passive income. So they’re also some assets to buy in your 20s.

This is not a very liquid market, so be ready to hold these assets for a long time. Depending on the type of cards, their rarity and condition, you can build a solid portfolio to sell to another collector like you for slightly more money.

Or exchange for pieces missing in your stacks.

Where to do this: RallyRD

Exclusive collectibles

King of watches

The best physical assets to buy in your 20s that investors never talk about. And you could understand them–investing in blue chip art for several millions of dollars, even buying a Rolex watch for $30K is not something that young investors can afford.

In addition to that, the recurring expenses related to storage, verification, and insurance of luxury assets can scare even savvy investors.

Yet, exclusive collectibles have shown a proven track record for outpacing major indexes, real estate, and even gold in terms of annual returns. For example, Art has outpaced S&P500 for 20 years, while Rolex has been doing that for 30 years.

Exclusive collectibles are the best assets to have in your 20s that retain value even when every other market goes awry. It is a market of eternal things, such as fine art, investment-grade liquor and wines, classic cars, and, of course, beloved luxury watches.

With the development of technology and regulations, up-and-coming investors can start investing in exclusive collectibles for as little as $50. Fractional investment here works the same way as with real estate but generates profit only when you sell your shares. 

The biggest temptation for successful goal-setters like you, though, is to plan and become the owner of 100% of the fractions of a chosen collection. Then, claim the physical asset or continue using it as an investment and look for the next buyers.

Where to do this: Investables

Conclusion

Honestly, it doesn’t matter much which of the markets you choose to add to your portfolio as long-term investments. All markets evolve and grow, and the longer you invest in them, the bigger your returns will be. Simply create your list of assets to buy in your 20s and make plans.

As for choosing the favorite type of asset to invest in, consider this: stocks and crypto come and go, and thus are volatile. But there will only be one Salvator Mundi, several unworn Rolex submariners, discontinued in 2020, and a hundred signed Turf Wars by Banksy.

With years, the scarcity, and thus the value of such goods will only increase. And investing in something as precious that is in perfect condition, insured, and stored in a vault seems like a solid groundwork for a successful financial future.

Do your own math after exploring our collections, and determine whether it is a worthy investment. Then use Investables alternatvie asset platform as the most efficient tool to reach your goals.

Frequently Asked Questions

What assets should you own in your 20s to succeed?

Having a diversified portfolio of stocks, real estate, collectibles, and other return-generating assets is great to start in your 20s. In the long run, you will create a safe and successful future for you for years to come.

Where do I find fractions of assets to buy?

While there are multiple platforms that can offer you to invest in fractions, focus on Investables. It is your one-stop shop for verified and maintained luxury assets such as watches, fine art, cars, jewelry, and others.

Can I invest in physical assets and build wealth?

Indeed, you can! While owning a house or a stash of gold is expensive, investing in real estate fractions and exclusive collectibles can help you start building wealth in your 20s.

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