How 20-Somethings Should Invest Like Guru

How 20-Somethings Should Invest Like Guru
When you are in your twenties you tend to have more confusions in your life. One of the rules is to try saving up when you’re within that age range.
When you save a particular amount of money you should start exploring the ways to invest them.
It is usually advisable to get yourself in a position that seem comfortable at least before you consider investing.
Basically, there are two rules a few experts recommend you follow:
  1. Invest in something that generates cash flow → Something that gives you money at the end of every month.
  2. Invest in something that you enjoy → In a company, business, location or stock you can get behind.
You want to be emotionally invested in what you invest in so that you see the results of that investment and that you can see that your money works for a greater cause.
The problem with this is that you will have to figure out the best way to invest on your own. For instance, investing in gaming firms differs from an investment in real-estate.
You have to research how and where you want to make investments on your own, which is why it is doubly important that you become emotionally invested in your investments!
Now this is just the precursor to investing; once you have that money saved up and are ready to invest then here is how you should treat your monthly salary:
  • 10% invested into Money-Generating Assets (Positive Cash-flow)
  • 10% invested into Loaning Money (Earning an interest on your money by letting others use it)
  • 10% invested into Charitable Causes (Giving money to those who need it more)
  • 5–10% invested into Your Personal Development (Courses, Books, Seminars, Coaches)
  • 60–65% invested into Bills & Living (Taxes, Groceries, Rent, etc.)
The above is a rough guideline you can use.
If you are not able to live on 60% of what you earn, then you are not earning enough, which means you either need to find a way to make more money or to reduce your expenses, even if that means living sparsely.
As a 20-something year-old you have the opportunity to live with your parents, get cheap rent, or find new roommates all the time; hell, you can even sleep on the couch for months at a time without repercussions.
Use those opportunities if you must!
With all of that being said it is important that you know one thing: If you are in your 20s, you have room to fail and explore.
Do not follow these guidelines if you do not know what you want in life! This will not bring you happiness!
The worst thing you can do is focus so much on money and financial freedom that you miss all the other opportunities and life just passes you by.
But when you are at the place where you demand financial freedom of yourself, then follow the above rules and you will be free in no time.