Young people are always told to invest their money, even when the stock market is uneasy. Some would tell you that today is the best time to invest because of low-prices. The question is, what exactly should you invest it in while you’re young?

After setting up your investment account, you’ll be great on your way to saving for goals such as retirement, future travel plans, or purchasing a home.

A lot of 20-something investors will have limited funds available for investing, but it’s not necessary to have thousands of dollars to get started with a technique that will succeed amazingly over time.

Here are top investment ideas to consider while you’re young. Remember that you don’t really need to invest in all of these but by choosing just two or three and constantly funding each, your wealth will start to grow quickly.

Begin Setting Up Your Emergency Fund

The very first thing you should start building up is an emergency fund. It’s always nice to have that assurance of being covered if an unexpected expense were to arise, such as loss of a job or natural disaster. Plus, you’ll also develop the habit of contributing daily to a fund.

The question is, how much should I save? Well, there’s an emotional and mathematical answer to that. Looking it through in a mathematical sense, it’s about saving three to six months of your fixed, continuous expenses. Emotionally, on the other hand, maybe that’s not adequate money for you to sleep at night. It’s really about finding the perfect answer.

It’s really okay to just start with $100 or $500 in a high-yield savings account, you may contribute to your fund regularly and build it up over time.

Identify Your Investment Goals

After you start contributing to your emergency fund, it’s time to set the goals that you want to work on. When setting goals, it’s about looking at all the experiences you want to have or achieve over your lifetime and then prioritizing those things.

For example, you want to travel the world every single year, purchase a car in three years or retire at 65. It’s about creating an investment plan to make sure that those things are possible. Make sure that the accounts you will apply for short-term goals such as travel, will differ from those you open for long-term retirement goals.

It’s important in your 20s to start the habit of saving money, no matter how much the amount is. After you have set and established your plan, you are more prepared to look into specific accounts.

Consider Jumping Early on Retirement

If you start paying your contribution $10,000 per year to a retirement plan by the time you turn 25, with an early return of 7% (combined with stock and bonds), you’ll have $2,008,829 in your plan by age 65. Being on that type of fast track may even allow you to retire several years early.

However, if you wait until age 35 to save for your retirement, the results are not as uplifting. For instance, if you start saving $15,000 per year at age 35, also with an average yearly rate of return of 7%. When you reach the age of 65, your plan will have only $1,426,427. That means more than 25% less, even though your yearly contributions will increase by 50%.

Buy Life Insurance in Your 20s

Life insurance can satisfy several various financial needs. Talk to credible insurance broker since life insurance for young people is cheaper. The younger you are when you initially purchase it, the less expensive it is. Also, it’s doesn’t only replace your lost income if ever you leave your future family who depends on your paycheck, it can also be utilized to pay off any debts owed by your estate. During your 20s, your biggest debt can be student loans.

Invest in a Financial Advisor

Having a financial advisor can also be an amazing resource for newbie investors. Although this is a more costly option, these people can work well with you in establishing your goals, identify risk tolerance and look for brokerage accounts that best suit your needs. A financial advisor is responsible for helping you choose where to direct the funds in your retirement accounts as well. Their expertise will guide you in the right investment direction.