Investments make your money work for you. If you take chances despite significant risks, you will be able to gain greater investment rewards. Depending on your strategy, you may win or lose. Are you a young adult looking for ways to build more wealth? Check out some of the great investments below:

  1. Property Investment 

You have all the power to decide what type of property you will invest in when it comes to property investment. It could be a house, business, or cars. But real estate remains one of the top investments as of today, as the home value increases significantly. Property investment, regardless of nature, comes with many benefits.

  • Leverage. Mortgage loans are more likely to get approved by banks and lending companies than share loans because the latter requires higher scores. Therefore, you can secure leverage, and your chances of getting investment returns can be higher.
  • Stability. The value of a property doesn’t depend on the market and sales, so it remains steady for a long time, unlike shares whose value depends on the ever-changing trading process and market status. In other words, it’s more liquid.
  • Instant Gain On Your Investment. By purchasing a property below the market value, you can add equity to your investment. 
  1. Debt Elimination.According to research, 43% of young adults deal with some forms of debt, which may include student loans and credit cards. Debt interest can accumulate quickly. For that reason, some people end up paying twice the amount of the principal balance. 

To consolidate your debt, you may need to come up with a financial strategy. The “Snowball Method” might help. It works by identifying your smallest debts then allotting your remaining fund to pay for it while paying the minimum amount for your other outstanding balance. Many say that it is an effective method of reducing debt slowly over time. 

Although consolidating debt may not be considered a form of investment, it helps you gain financial freedom.

  1. Higher Education. According to Vista College, higher educationcan let you pursue a job that interests you. Job satisfaction can be higher if there are higher salaries, more appropriate benefits, and more chances for growth. 

Indeed, higher education prepares one for their chosen career and increases their chances of landing their dream job. Investing in higher education is also advisable for those who are unable to get a good-paying job. Just choose the program that you are most passionate about. 

  1. Money Market Fund

Money Market Fund is a mutual investment with bigger returns than the standard savings. It works by buying and selling debt instruments in wholesale. 

Some examples of debt instruments are time deposits, government bonds, corporate bonds, treasury bills, and commercial papers. Big companies and institutions take advantage of it to loan capital more quickly. 

It does increase interest rates easily, but it also puts your investment at a higher risk. So it’s essential to know how Money Market Funds works if you’re a beginner.

  1. Short Courses

Short training refers to programs that help individuals gain new knowledge and skills in a given field for career advancement. The courses may last for up to six months to a year. By the end of the training, the person will be given a certificate that is acknowledged by various institutions and companies, making it easier for them to land a job. 

Some of the programs available are: 

  • IT & Computer Science
  • Creative Arts & Media
  • History
  • Law
  • Healthcare & Medicine
  • Nature & Environment
  • Language
  • Psychology & Mental Health
  1. Index Funds 

Index Funds, also known as “Exchange Traded Fund,” is a portfolio that mimics the components of a financial market index. It is believed to match the performance and investment returns of the financial market index that it’s mirroring.

The fund manager invests not in buying and selling, but in developing a portfolio that can reflect the securities of a particular index. Some of the benefits include lower fees, passive investment, minimizing money loss, and stable returns. 

  1. Retirement 

Retirement is the stage of life where one leaves the corporate world behind permanently. Start investing in your early 20s; that will give you 40 more years to accumulate your retirement savings. 

By allocating at least 15 to 20% of your earnings on it, you can ensure a comfortable and happier retirement, without having to rely on the Social Security System for financial support. 

Not only do investments make your money work for you, but they also reflect how good you are at managing your finances. Choose great investments today to start setting yourself up for success. 

Meta title: Best Investments Young Adults Can Make in 2020

Meta description: While you’re still young, consider making great investments to start setting up the foundation for your financial success. Learn more about it here.