5 Best Asset you Can Own As a Teenager
I’m going to talk about the best asset you can produce in your 20’s that would make you the most money and some of the purchases are the ones that I personally made and has helped me out tremendously in terns of building my income and growing my network, not to mention all of these are things that nearly anyone can work towards and achieve in their 20’s and unless you’re like 29.5 right bow, which in this case might be a Little bit late on the end. But even then this list is meant to be as practical as possible based off my own experience.
Now the first best asset you can own is an investment towards your career that would make you more money, yes I realize the sound like this typical genuine. I’m sure people are getting tired of hearing that the best investment is in yourself, yes it gets annoying but I would also by lying if I don’t talk of the importance whatsoever because my first actual investment in myself besides me going and buying self help books that ended up making me a great amount of money was me spending a few $100 to go and get my real estate license, and at that time I didn’t know what to do with my life I didn’t have a ton of money, but I thought me getting a real estate license was my best chance of making money without being confined to an all this day, little did I know that a few $100 a year spent getting my real estate license would be the entire foundation of where I am today if it wasn’t for that I never would have become a real estate agent, I would not have learnt about the real estate market, I never would have had enough money to invest in the real estate during the recession, I never would have had the experience when I started coaching.
And without it I doubt I would be here today, it’s funny sometimes how one small choice can completely alter the entire path of your life. But don’t get me wrong I’m not saying or implying that everyone should go and get their real estate license. But seriously you can go and get your real estate licence, if you want go get info a trade, go into a trade school, if you want to start your own business spend some money in learning how to do that.
And if you’re starting off at the very bottom, you’ll think to yourself what you enjoy doing, what your passion are, where you see yourself in the future and family. The career opportunities that fits that and really in your 20’s the best purchase is all just about increasing your income, I read believe your 20’s are a time to work your ass off don’t be stupid and smart with your money, incest as much as you can and solidify the entire foundation of your career, then after that it’s all about just growing and maintaining your career.
So that way you can continue investing and then one day you’ll make enough money from all of your investments to pretty much fund whatever you want to do without you having to work anymore unless you work to work in which case, you can keep working it’s totally fine.
But it really does start with an investment in yourself that helps to make you more money and if you’re just completely lost, you have no idea where to begin just go and read the books: Think and grow rich, the 4 hour work week and rich dad, poor dad. Trust me I’ve read this books multiple times its life changing and that’s enough to get the ball rolling and get you pumped up for the future, you’re not going to know what to do with yourself, or actually you will know what to do with yourself after you’ve read those books, so don’t read those books if you haven’t done that already.
The next and the second best financial purchase to make in your 20’s is to assume you don’t already live in a place with amazing public transportation, is to go get a reliable used car, thus is actually the first thing I really bought for myself when I started my career, I saved up all of my commissions from renting houses and apartments and then used the money I had saved up from working part time to a high school to put that towards buying a 2000 Toyota pierce and that was the car that I owned for nearly 4 year that car never once Broje down it cost almost nothing in gas , insurance was cheap and I lost almost no money in depreciation by the time I got rid of it.
Like at that time, I just could never understand why people at my age were out there buying and releasing expensive cars when instead they could just her that exact same payment towards buying something that they would be able to outside own within a year.
Even though a 2000 car is glamorous but it did the trick and it served it purpose, I would strongly advocate for anyone in their 20’s put your ego and pride aside and just get a reliable used car that is not going to depreciate in value, that is not going to cost you a lot of money and just gets you from point A-B. If you can have your entire life ahead of you and just go and buy reliable cars if anything, you’ll enjoy it much more, not only having waited for it, but also buying it when it doesn’t cost you so much money, financially.
For example, over 4 years that car only lost about 1500in value, which means in other words it cost me only a dollar a day plus the cost of gas and insurance and maintenance to own a car that I was able to drive for 12,000 miles a year.
If you compare that to any other car I could have driven that car served me at minimum, 52.000 a year, at a time where the market was an all time low and going and use that money instead to invest and make more Money and that why I suggest you do the exact same.
There’s a multitude of really good reliable used car out there that have already seen the bulk of depreciation and not going to cost you much money outside of gas maintainace and repairs.
Now the third purchase on the list is really something I should have mentioned earlier front the very beginning but the only people who can understand that the best purchase you can make in your 20’s is going and hiring a CPa when you file the tax return which by the way, here’s the thing taxes are insanely complicated way more than they ever need to be and that is coming form someone who enjoys learning about taxes and all the intricacies the system and I still can’t even comprehend at that time how it’s worked, not to mention that there is a lot of taxes that’s completely open to interpretation, so you want to make sure you’re maximizing the benefits of everything you’re allowed to do with the law of course,
The best thing to do is hire a really good CPA , my philosophy with this is that generally a good CPA would at he worst case scenario at least pay for themselves and that’s the worst case scenarios, and the best Case is that a goof CPa Is going to end up saving you way more money than you pay out and for me hiring someone like this has saved me a lot of money. I was able to set up with an escrow maximize my deductions, properly schedule that depreciation and apply everything I’m entitled to, for so many things I did not know about that I did not know even existed, there are literally professional out there who do this full time round the clock for decades and can give you all their attention for a really good price, trust me on this, taxes are something tat you should at least just try to understand and hire a good CPA to do it for you and I’m surprised more people are talking about that, the amount of money that you’ll Dave would probably be really worth it and the more money you make the less if it you get the keep, so trust me on this on, learn how this works, he’s a professional and you’re going to be really glad you did and before I go another classic that I’ve mentioned to you in this article, but it’s so important that you do this especially in your 20’s and that is by purchasing stocks or index funds, within a ROTH IRA, and yes I’m calling this a purchase.
Now for everyone who isn’t aware what this is, a ROTH IRA is basically just a retirement account that let’s you contribute what’s called post Tax money and all the money you make within that account becomes completely tax free at one age of 59.5.
Think of it this way, just as you have a bank account that gives you access to a checking and saving account, you can open up a ROTH IRA, that’s give you access to your investments and the massive advantage in doing is that all the money you can contribute with that account is going to be able to grow completely tax free.
That’s means if you invest a $1000 into that account and one day it grows to $10,000 well in any other situation you’ll be stop paying taxes on them but with a ROTH IRA. You can have all that money completely tax free at the age of 59½.
Now the advantage of doing this especially in your 20’s is two things the first is now that you’re Young, you have the added bonus of coming interest working on your side, this means you invest money makes you even more money and that money makes you even more money and the sooner you start doing this the more money you’ll make opening up a ROTH IRA can really just be as simple as going to google and typing how to open up a ROTH IRA account.
The second is that the taxes have already being taken out of what you have left over and most likely in your 20’s you’re not going to be earning a lot of money which means you won’t be as high if a tax bracket as you would be later when you’re earn more.
The feeling I think it comes as no simple that the best purchase was real estate for me this is what happens when I invested in my career took saving money, really seriously worked towards building my credit, doing a used Reliable car and spending my time learning the market and within 4 years of doing that non-stop and saving as much money as I could I bought my first rental property when I was 22 years old.
After words, I continued saving and within a year, after that I was able to buy 2 more properties, now when it comes to my self, those early real estate purchases not only changed my entire outlook on investing but also the rewards of diligent hard work.
It was such a incredible feeling to look at a house and know that I was the owner and know that was the result of so much sacrifice so much late nights. Like when it comes to personal finance we didn’t get trophies or anything like that. But you can but a really cool house and just look at it and smile.