When you’re young, you feel invincible. Retirement feels like a problem for Future You, and money tends to go straight toward the latest gadgets or a spontaneous weekend trip instead of a savings account.
Very few young people think seriously about investing.
But here’s the truth: the best time to build a real nest egg is right now, while you’re young. Investing isn’t only about money, either.
Young people have something even more valuable on their side: time.
Use it well, and you can set yourself up to retire early and never stress about money again.
Here are some of the smartest ways for young people to start investing.
Related: 10 Best Frugal Tips for Young People
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Related: 5 Personal Finance Tips for Beginners
Invest in Yourself
Anything that grows your earning potential counts as an investment. Go back to school. Learn a new skill. Push for that promotion. Start the business you’ve been dreaming about.
And if that business doesn’t work out? You still come out ahead.
You’re young enough to learn from the mistakes, regroup, and try again.
Invest in things that make your life easier, and don’t skip insurance. It’s one of the quietest but smartest investments you can make in yourself.
Invest in Land and Real Estate
Land appreciates over time, which makes it one of the safest, lowest-risk investments out there. That said, don’t jump in blind.
Do your research, run your due diligence, and find a mentor who’s already walked this road if you can.
Invest in Stocks, Shares, and Equities
The market can grow your net worth significantly over time, but it can just as easily wipe out your savings if you go in unprepared.
Research thoroughly before you buy anything, and consider working with a financial advisor. Look for companies with strong fundamentals and a track record of paying dividends.
Save as Much as You Can
A dime saved really is a dime earned.
Resist the urge to splurge, and put away as much as you can, as often as you can.
If your employer offers matching retirement contributions, take full advantage. It’s free money.
Savings give you peace of mind, too.
Emergencies happen, and a solid cushion means you can handle them without panic. Balance your savings between short-term and long-term goals so you’re covered no matter what life throws at you.
Educate Yourself on Investing
Learning about money while you’re young can change the entire trajectory of your life.
Find a mentor, and don’t be afraid to pay for good advice if it means avoiding costly mistakes down the road. A little guidance now can save you a lot of heartache later.
Read More: 34 Best Money Books for Teens and Young Adults
No Investment Is Better Than Another
There’s no shortage of ways to grow your money, so find what works for you.
Talk to people who know more than you do before committing a single dollar. Every investment carries risk, so do your homework and lean toward the safer bet.
Sometimes the boring, steady option beats the trendy one.
A reliable investment that grows slowly over time will almost always outlast a flashy trend that can disappear overnight.
Invest in Your Health
Your health is your greatest asset. Without it, none of the rest matters much, since you can’t build wealth if you’re not well enough to work toward it.
Get health insurance sooner rather than later. Medical bills add up fast, and having coverage in place means one less thing to worry about.
Take care of yourself now: exercise, wear sunscreen, eat healthy food, avoid drugs and alcohol and get a lot of rest. You won’t regret it.
