If you’re in your 20’s, congratulations! You are young and have your whole life in front of you. Your 20’s is a time in your life where you will make mistakes and learn from them. But when it comes to our finances, what if we could prevent some of those mistakes that may even cost you moving into your 30’sÂ
To be honest, the fact that you’re even in your 20’s or 30’s and even reading this article to identify the best purchases that you can make in your 20’s, shows that you are on the right track.
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What are the Best Purchases to make in your 20s?
There are alot of purchases to consider when you are in your 20s. Instead of buying things that won’t serve you in a meaningful way, consider purchasing items that will transform your future. Purchases like a gym membership, reliable car or a laptop or computer can be a good starting point. Investing in a side hustle, your social circle, real estate, knowledge or paying to learn a new skill is a smart way to spend money at a young age.Â
It’s easy at any age to buy unnecessary things on impulse. Or trying to buy things so that you can keep up with others. And nowadays, purchases are being made as a flex, to post on social media.
So let’s jump right into it with the best purchases to make in your 20s.
I wanted to start with one that I haven’t personally heard anyone else say, and that’s a..
Gym Membership
This is one area of my 20’s that I did implement. Your health is everything, and without it everything else doesn’t matter. So, it’s important to purchase or invest in your health. You can get a gym membership for $10 a month now a days. It’s very inexpensive but will play a huge role on your mind and health.Â
And obviously its not the membership that is important, but the fact that you go and show up to the gym even when you may not feel like it. Here’s what the gym membership will ultimately do for you.Â
First the obvious benefits: And These are the result-based things like what we can see and feel from working out.
So this can be you getting stronger, losing weight, putting on muscle, increasing your endurance from cardio or even improved flexibility and balance.Â
But there are intangible benefits, that you can have a huge impact on you that you may not even realize. Making a habit of showing up to the gym, even when you don’t want to, or when the weather isn’t that great and still being consistent and showing up each week, even if its just a few times a week.Â
Can create mental strength, determination and increase your ability to start something and see it through. It is a habit that will carry on over into every aspect of your life, work and business.Â
Then there are long term effects on health and quality of life. You would most likely live a longer and healthier life, be more productive and you will feel a sense of accomplishment.Â
Next purchase we have is.. Not a Rolex, sorry.
This is probably the one regret I have on this list, that I wish I would have did in my 20’s. Essentially a very smart purchase would be to buy either a duplex, tri plex or four plex live in one of the units and rent the others out.Â
And you can get a traditional FHA loan and take advantage of all the benefits that comes with it because you are living in one of the units. I know you FHA loan are for your primary residence, but when you house hack it’s both a primary residence and an investment property, so you can use an FHA loan.Â
So, this is a smart strategy even if you don’t have the best of credit or income, because the down payment to acquire this multiplex is working in your favor.Â
Here’s why this is a great purchase in your 20’s..
First, the rent from the other units will pay the mortgage down and should allow you to live for free if done correctly. Also, you would have less maintenance and headaches as all 2-4 units are all under one roof. So any tenant issues, landscaping and maintenance is easily manageable.Â
If you decide to move you can simply rent out the unit you were living in and have passive income coming in, with mortgagee paydown and hopefully some appreciation.Â
This can get you some great equity and you can sell that property later, refinance your cash out or continue to get passive income every month.
Reliable Car
As a young adult, it’s important to have a way to get from point a to be, reliably. If you live in an area where you may need a car on an ongoing basis, or where parking is not as much of an issue, then you can buy a used dependable car. This way you can get to work, school or anywhere you need.Â
So, whether you want to get a job further out or start a business, or even network, then you can depend on your car to get you there.Â
When I was in my 20s I had a Toyota Camry and then a Honda Civic. Both used and reliable. Try to stick to budget friendly used cars and not go for a high-end vehicle that comes with a larger monthly car note or has higher cost for maintenance.Â
When you’re at any age, you want to make sure that you are living below your means, investing excess capital and in your 20s, it’s important to set yourself up for success and not drowning in large monthly expenses.Â
Start planning how much of your monthly income will go to the expenses. With a car you also need to factor in gas, regular maintenance, car insurance (which can be a lot in your 20s), and repairs when it eventually comes up.Â
Next purchase is…
Laptop/Computer
How can you even operate in today’s age, without a computer or a laptop. So, my thoughts on this are much different than the car. I would invest in a high performance, great quality laptop, and would spend a bit more money to get one that will last you a long time.Â
I wouldn’t be cheap on this purchase, and I would even make sure that I have high speed internet as well.Â
This purchase will serve you no matter what you are looking to do in life. You may need it for school, work or running a business. Jobs nowadays are going more remote and digital, so it’s important to have all the tools needed to succeed in life.Â
A dependable laptop is an investment for your work life. Everything is done online so it makes sense to invest in a laptop that will have enough storage, battery life and will last a long time. Plus, if you’re still in college or are a very recent graduate with a student ID, there are discounts available for some tech products.
I Personally have a MacBook Pro that I’ve had for about 6 years now with no issues. You don’t need to get a mac, any laptop that is known for its quality and performance would be a great option to look into.Â
Next purchase is..
Maybe not what you expected, but investing in a side hustle can allow you to level up your experience and give you the ability to make more money.Â
In my 20s I was super broke and could have used the extra money. There are side hustles you can do that won’t interfere with your day job.Â
You can start a gig on Fiverr or Upwork, you can get your real estate license and start selling houses on the side, you can flip things online, or even become a mobile notary, use the reliable car that you purchased earlier to make extra cash on notarizing documents on the weekends.Â
This would mean purchasing tools, certifications, or licenses to operate your side hustle. This can be a great investment and will teach you how to manage a small business or at the very least allow you to make some extra money so that you aren’t eating ramen noodles every day and living paycheck to paycheck.Â
Next purchase is..
Social Circle
When you’re a young adult, your friends are everything. It’s easy to set the standards of what you expect out of life based on how those closest to you are doing.Â
Investing in being in the right room, with people that are at a way different place in their life, based on a series of good decisions that led them to be where they are today, is a great way to excel and grow in your 20s.
Surrounding yourself with the right people will change your way of thinking and push you to change for the better.Â
You can pay to be a part of certain events, organizations, or masterminds where you learn from people that have made some extraordinary accomplishments.Â
That brings us to our next purchase which is..
Knowledge
In my 20s, I didn’t know anything, and I thought I knew everything. If I had the knowledge that I have now, in my 20s, then I would have been way further along in life.Â
It’s a good idea to start paying for knowledge at a young age and learn as much as you can. The direction of what you are trying to learn may not be fully dialed in yet, but you can generalize the learning to something you are interested in learning more about.Â
You can start with audibles or books, which is inexpensive. Books like how to win friends and influence people, rich dad poor dad, think and grow rich, are all books that can help you no matter where life take you.Â
You can take it a step further and buy online courses and learn about something specific or from someone that you want to learn from.Â
This is a great way to accelerate your growth and take steps towards achieving results that you want. Ultimately you are saving time because the knowledge you have acquired will speed things up a lot faster for you and can even help prevent some common mistakes.Â
This brings me to the halfsy, the .5 that you see in the title. And this is because it ties into this but is huge, if you want to make more money in your 20s.Â
That’s investing in a skill.
½ Skill
If you pay or invest in a skill and use that skill and apply that skill, you will make more money.Â
Learning and developing a skill is one of the most important things you can do at any age. It is the ability to do something well and eventually become a expert in a particular area.Â
Learning new skills in your job or as a entrepreneur, will give you more confidence, allow you to make more money and grow.Â
Some fields require that you have a degree, license, or certification before you can exercise a skill to make money.Â
So if you get licensed as a real estate agent, and you are good at the skill of marketing and selling houses. Then you will make good money.Â
If you buy a course on how to run ads online and become very good at that thing and build that skill. You can make money by running ads to your own store or get paid to run ads for other businesses.Â
