This post may contain affiliate links, allowing us to earn a commission on the products we would recommend to our families and closest friends. You can find more info on our Legal Stuff page.

Today’s post has been contributed by Savings and Sangria reader, Krista. She’s got a couple tips for you on how to invest for your future while you’re young.

Do you have a topic or a post you’d like to share? Contact Us!

3 Solid Investment Tips for Your Future

Many of us will agree that when we are young and carefree, our future (especially our lifestyle in retirement) is not something we regularly think about, am I right? We are too busy living in the here and now, where future planning is the summer vacation or where to spend Christmas.

But though you might not be thinking about it now, it should be something we consider as early in our working lives as possible. The financial decisions you make when you’re young have a real impact on your lifestyle in the future.

It isn’t about saving every cent you earn. It’s about making smart financial choices. Which is why I thought I would share with you some of the solid investments you could consider now that will positively affect your future.

Buying property

One of the biggest investments we can make for the future is getting on the property ladder. It is something that you should do at your earliest opportunity.

Getting on the property ladder basically just means buying a starter home. As you pay down the mortgage (and hopefully property values increase simultaneously), the equity in your home will increase. And that will help you trade up for bigger, better property down the line. Or branch out into investment properties!

It can be difficult to raise the funds initially for a down payment. But once you buy your starter home, you’ll be able to use the proceeds from that sale as the down payment for a more valuable home later. Like when you need a home with more space or relocate to a better neighborhood. With each move, the equity in your property gets reinvested in your new property.

A look online at websites like Whitetail Properties real estate can help you see the big picture of real estate investing. By the time you retire, you’ll have an asset that you can live in without worrying about rent or you can sell to pay cash for a smaller home.

It might seem like such a big decision to make, but the earlier you can buy a home, the better things will be in the future.

Just make sure you’re financially ready before taking the leap.

Saving little, early, and often

You must save money!

But rather than living life on the wire and saving every cent, a great tip is to just save little, early, and often.

The earlier you set up a regular savings pot, and transfer a reasonable amount each payday, the more time your money has to grow. And it doesn’t only grow because of your regular deposits. It grows because of compound interest.

Compound interest is how you can save $220,000 over your working life, but retire with $1,203,031.

Having a future plan

Finally, it is important to have some form of future plan.

While it shouldn’t be set in stone (because no one truly knows what the future holds) it is important to know what you want out of life and create a plan to get there. Life doesn’t stop when you retire. In fact, some people say the new chapter in your life is just as exciting as your previous chapters. So think about what you want out of your future, even into retirement, and figure out how to get there.

I hope that this gives you something to think about in terms of solid investments for the future.