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Education
The first important purchase Yang listed is education.
Keep in mind that he isnt just referring to formal education.
A Plane Ticket
The next item on Yangs list is a plane ticket for solo travel.
He explained that traveling on your own is a great way to learn about yourself and build your self-esteem.
Investing in travel while youre young is a great way to set yourself up for a healthier future.
On top of that, travel doesnt have to be expensive.
Look for affordable hostels, cheap transportation andfree sightseeing opportunitieswhile youre abroad.
Index Funds
The earlier you start investing, the more time your investments have to compound.
That means a much higher return in the long run.
According to Yang, index funds are asimple first investmentfor beginners in their 20s.
Its essentially like buying a small percentage of multiple stocks across multiple industries.
Yang recommended buying index funds in a Roth IRA for thebest long-term return.
Coffee
This one might seem silly.
After all, arent financial experts always telling young people to stop spending so much money on lattes?
By coffee, Yang didnt just mean caffeinated beverages.
He meant meeting alike-minded friend or colleaguefor coffee (or lunch, dinner or after-work drinks).
In other words, investing in your connection.
Experts believe that meeting face-to-face helps build stronger, more meaningful business relationships.
Reliable Transportation
You need a way to get around at any age.
Yang recommended investing in a quality used vehicle instead of a flashy new car.
Thats because cars are depreciating assets, and they depreciate most rapidly right after theyre purchased.
In fact, some models can lose up to 40% of their value in the first year.
Choose dependability and good gas mileage over aesthetics.
A Good Mattress
Quality sleep is more valuable than you might think.
Real Estate
Unlike cars, real estate is an appreciating asset.
A Gym Membership
The final thing Yang recommended buying in your 20s is a gym membership.
He explained that his gym membership has helped him establish an exercise routine and get out of the house.
Exercise has proven benefits for your work performance as well as your mental and physical health.
Put simply, you dont need to be wealthy to make smart investments.
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