How to Invest During Your 20s

For most 20-somethings, finances have become second nature: paying rent or mortgages, paying bills and managing credit cards. However, if you ask any young adults about their finances, they might tell you they’re intimidated by one word: invest.

Investing can seem like something that older generations are doing — a murky concept that young people don’t need to worry about until later. But don’t be intimidated. Here are some quick and easy tips to help you start investing in your 20s.

1. Do Your Homework

When it comes to where you should put your money, you have plenty of options — but not all are created equal. It can be tempting to jump in quickly, especially if you’re interested in watching your money grow. But you need to take your time and be sure to look at all available options, read reviews and set aside time to talk with a financial planner about where to invest your hard-earned money. With a careful eye, you can avoid scams and put your money where it matters most.

2. Start Small

A common misconception of investing is that it requires you to lock away thousands of dollars, which you may not have access to as a young person. This is simply not the case. Especially in the age of apps, you can access simple investing tools such as Acorns, Stash and Robinhood that can help you invest for as little as $5. These apps are free and convenient for anyone new to investing and participating in stock markets. Each of these apps provides a great way to start with small amounts of money and watch it grow into a portfolio over time.

3. Get Real About Your Budget

The best way to start investing as a young person is to invest time and effort into recognizing your current spending habits. If a financial planner is not in your budget, ask a trusted family member or friend to help you go through your expenses from the last month or year. Look for patterns and areas for improvement. Taking a step as simple as cutting out a weekly visit to a coffee shop can save hundreds of dollars down the line.

Citizens National Bank is committed to helping you save money for your future life and success. You have a number of options to put your money in the right position to grow, and now is the perfect time to start. Set aside some time to visit us and let us help you plan your financial goals for the new year.