When you’re young, the world is your oyster. You have a job, you’re earning well, and you’re just beginning to explore the life that’s ahead of you. 

But if you are to be smart about your future, now is the best time to start building your financial portfolio with these four smart investments:



Time and compound interest are your biggest financial advantages as a young adult, so you have to maximize it by making sure that you save up early for retirement. Just imagine that if you start building your savings in your 20s, you’ll have enough time to accumulate at least 20 years’ worth of retirement savings. This gives you more financial security and freedom for when you are already in your late adulthood years.


Real estate

Most—if not all—seasoned investors have at least one real estate investment in their portfolio, and it’s because a property is one of the easiest to invest in. But it also brings a lot of revenue if managed properly. If you’re not too keen on investing in a house just yet, you can start by looking into a Deanside land for sale in an upcoming community where you can slowly work on building a house or commercial building in the coming years. 

A lot of young investors invest in properties and sell them when the market is good. Managing real estate investments also doesn’t require a lot of expertise and effort, so it’s a good starting point for you as a young investor.


Debt elimination

With student loans being a huge issue among young adults, it’s very important to make sure that you pay off any debt you have because it will prove to be a limitation in the long run when you’re already trying to build your portfolio. 

Eliminating debt means being able to start from scratch, so you don’t have to worry about any limitations in your cash flow. Although it’s almost impossible to eliminate debt, paying off what you can will allow you to invest your money in things that will give you more financial leverage in the future.


S&P 500 index funds

Since you have the advantage of time, you should focus your portfolio on growth-oriented assets. This will allow you to maximize your compounding interests, which means you get to enjoy a higher return on investments in the years to come. The S&P 500 Index has been one of the strongest forms of investments since 1926 that gives you an annual return rate of at least 10%, making it an excellent source of compound earning for young investors. Take the time to do your research, so you can learn more about these funds and the best options for you.


Starting young is the best way to go when it comes to creating a stable financial future for yourself. Whether you’re starting with a piece of property or dabbling with stocks, you have the power to make the most of your investment because you have the advantage of time.

4 Smart Investments for Young Adults