Investing Tips For 20 Year Olds

Here are some tips for individuals around my age from 18 to 24 years old looking to invest their money. These investing tips for 20 year olds apply to when you are starting out before you have substantial income or expenses. You should invest your money in something you care about. If you are personally invested in it, you will have a much easier time handling the emotional side of the stock as far as price changes. If you don’t care about the company you invest in, you will be more likely to sell in a downturn out of fear of losing money. You also need to keep some amount of liquidity for unexpected costs in your life. I have made this mistake and been forced to sell stocks to pay for car repairs. You never want to be forced to sell, if the stock is down you could have to sell in a down market out of necessity. From my personal mistakes, I am able to give you good investing tips for 20 year olds. You should always have 6 months of liquidity on hand, meaning enough money to live for 6 months. You also want to obsess less over the stock. Don’t check it every 15 minutes, or even every hour. Watch daily and weekly charts, otherwise you may be shaken out of a position and end up losing money. Before computers, you checked your stock closing price in the newspaper and that was your only option. Pay attention to the daily changes and for the most part ignore the hourly volatility. Please share any investing tips for 20 year olds or younger people you may have! Stocks I have invested in: Chimerix (Still Holding) AMD (Still Holding) National Grid (Still Holding) National Oilwell Varco (+16.2%) Signet Jeweler (-5.7%) Arbutus Biopharma (+19.5%) Petroleo Brasilero (-5.5%) I shy away from trading individual stocks now. Website http://www.ryanoscribner.com Follow me on Twitter! https://twitter.com/RyanOScribner Personal Fitness Coaching http://www.ryanoscribner.com/shop If this video brought value to you, please leave a like! If you are looking to find out more about anything I discussed, drop me a comment or contact me on Twitter. Subscribe to be updated on my journey through life! About Me: My name is Ryan Scribner. I am a nutrition and fitness crusader and I consider myself to be a life student of personal development. I am also an investor. I went from being an overweight college student to living at 8% body fat. About two years ago when I started weight lifting, I was completely clueless. I never played sports in high school and I had no base level of fitness established. I made many mistakes, but over time I developed an understanding. I want to help others develop the body, spirit and mind they deserve. In making mistakes along the way and learning from scratch, I have a lot of value to bring to the table. I recommend my content to those interested in the accumulation of wealth, fitness and nutrition as well as personal growth and development. Recently, I made my own happiness a priority after living with depression for over a year. I want to share with you exactly what I did to get to a state of perpetual lasting happiness. I have also spent a great deal of time learning about investment and wealth accumulation. While money alone doesn't bring happiness, it allows you to experience many things which do bring happiness. Start the journey. Involve the right mentors and coaches. Learn.

Comments

1. You're exactly correct.. on most things, but average investors need to have simple discipline to achieve there goals.
   
   Like you said, In your early years you need to invest as much as possible because it has the most time to grow and you have the most ability to save.
   
   Also, liquidity is the first and most important step to any good financial plan. 3-6 months is needed before starting a plan because you don't want to stop your investments due to an emergency. (Or have to use credit)
   
   The final point I want to make is look at your long term investing as a fixed expense. Invest a set amount of your pay into a well diversified portfolio (10%-25%+ whatever your budget allows) before you spend any of your "discretionary" income.
   Do not manage this yourself and use a professional. If you would like actively managed money look into an advisory account. The reason I say this is because this will keep you from making irrational emotional decisions that could have a dramatic effect on your future.
   
   Once you invest that feel free to use your extra money on whatever hot picks you believe will do well.
   
   Cheers
2. +1 to having liquidity. The rule I am currently following is that I have 3 months worth of earnings in an easy access savings account, a further 3 months worth in a better interest notice account and then anything above that I will be investing in etfs. Haven't invested yet because my emergency fund took a hit during the holidays. Want to get my fund back to 6 months.