Investment You Should have Before 30

In the post Financial Goals You Should Set Before 30, I explained how to go about planning ones financial goals and target before getting to the age of 30 and in the quest to explain further, I will be looking into a few assets that should have been owned before the age of 30.

While growing up and within the age of 25 and 30 years, you are going to be owning a lot of things, which including debts and assets. While in the previous post, I looked into the steps to take to be financially free, in this post, I will be looking into the assets you should own before you get to the age of 30.

The first asset you should not own is a car, unless it is bringing you income. While cars reduces in value as the day goes by, it is very important to know that provided it is not bringing in income, then it is more of a liability than an asset.

Now back to business. Stocks are known to have an average of 10% APY according to the S&P500. While index fund does give returns, not all stocks give returns at the end of a year as the price can be up and down. It is advisable to invest in Index funds.

As a young person, unless you own a business which is being funded by investors, it is not possible to have a lot of spare cash, but then you have access to cash from the bank. Using mortgage to your advantage is great. You can purchase a house, lease it out, and use the money from the lease to pay your mortgage, and while you are clearing that, you can get more mortgages. I do not advise you to do this if you do not know much about how mortgage works. If you cannot access real estates in reality, you can own part of a real estate company by purchasing REITs. REITs are shares of companies that are into real estates. They pay 80% of their return in dividend to investors, making it a win, win, if prices go up and dividends are paid.

Another place you can invest your money in are startups. While they are still new in the waters, it is advisable that you invest in them. Do not invest in a startup that you do not trust its standing, its team and so on, and do not invest in a startup that you do not understand.

One Asset you should have in your hand before your 30s is cryptocurrency. It is still very new, but it is gaining ground daily, and it is becoming bigger on a daily. You should also not just invest in any cryptocurrency, you should invest in cryptocurrencies that you know, and remember that cryptocurrency is very volatile.

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