What's up, graham, it's guys here so listen. I realize it's easy to get sidetracked online with stories about how the world is falling apart. The perpetually upcoming stock market collapse and jeff bezos is nasa lawsuit. That's so big! It keeps crashing computers, but today we're going to turn things around and talk about the good like the soon to be teenager, who just made 400 000 selling nfts of a pixelated whale all right.

But in all seriousness, since the vast majority of my audience is under the age of 30, i thought it would be a good idea to talk about the best investments that you could buy in your 20s and then keep for the rest of your life to build Wealth and if that sounds easy, it's because well actually, it's that easy. These five investments would literally give you the ultimate diversification across every single asset class in the entire world, with the highest average returns. None of it should be too far out of reach as long as you have an internet connection, and almost all of it could be started immediately, regardless of how much money you have, but really quick, if you guys enjoy videos like this, where i cover the best Investments to make throughout every decade - just let me know by hitting the like button that gives me a really good gauge of these - are the types of videos you want to see more of, and that helps up my entire channel tremendously. So, thank you guys so much and also big.

Thank you to policy genius for sponsoring this video, but more on that later. Alright, so we'll start with the easiest freest one first, and that would be build your credit score. Now i get that some of you might be upset and comment, but graham your credit score's, not an investment. That's clickbait, plus dave ramsey says that credit cards are bad and all right, i'll admit.

Dave ramsey does not like credit cards, but i do and if you don't understand how this could easily be one of the best investments within the entire video i'll explain. Along with how you can get a perfect credit score for the low cost of absolutely nothing now as a background, your credit score is a collection of numbers that ranges anywhere from 300, all the way up to 850. and the higher your credit score is the more Likely you are to get access to a low interest rate, a mortgage, a personal loan, credit cards, banking services and an entire secret world where banks and lenders are literally just throwing money at you. So if you want a perfect credit score for free here is everything you need to know summarized in about two minutes to start your credit score is calculated by these five components.

The first and largest factor is based on: what's called your on-time payment history, and that makes up 35 of your score. This means you always pay your bills on time, as agreed, without ever being late or missing a payment. The second largest component is, what's called your utilization rate, and that makes up 30 of your score. This calculates how much credit you have available to you versus how much of that you use if you're somebody who maxes out all your credit cards, you use almost all the credit.

That's given to you, that'll lower your score, because you're seen as a riskier borrower. So don't do that then. Third, we have the average age of your credit, and that makes up 15 of your score overall lenders love to see that the longer you've had your accounts, open for and in good standing. The higher the chances are that you're going to be a good experienced borrower.

Then. Fourth, we have the types of credit that you have, and that makes up another 10 percent of your score. This means that lenders want you to have experience, handling multiple types of loans. Just to be able to prove to them that you're, a financially responsible adult who knows how to pay their bills on time and finally, number five.

The remaining 10 percent is calculated by the number of credit inquiries that you have see anytime. You go and apply for a new line of credit. It shows as a hard inquiry on your report and, generally speaking, the more hard inquiries you have on your report. The lower your score is temporarily going to be because lenders see you out there actively trying to get as much credit as possible and because of that you're seen as a riskier borrower, and because of that, your score is lower.

So, with all of that fancy jargon out of the way, if you want to build your credit score past 800 for absolutely free here is exactly how you could do that, one if you're, just starting out with no credit history, all you have to do is get A no annual fee secured credit card. They don't pay me to say this, but my personal favorite is the discover it secured card. Where you put down a refundable deposit and in return they give you back a credit line equivalent to that amount. Then, after that, all you got to do is put a few normal expenses on the card every single month and then pay it off in full by the time.

It's due, that's it, and if you want to expedite the process even faster, you could get two. No annual fee secured credit cards at the exact same time. For example, you could get the pedal one, no annual fee visa card or the secured mastercard from capital, one just make sure. Whatever cards you get do not have any annual fee, because these are the cards that you're gon na keep forever to bolster down the average length of your credit history, then, second go and sign up for one of the free credit monitoring websites, like credit, karma or Credit sesame: this will help you monitor your credit history and then over time you could watch your score, go up all for free, then, third, after six months of paying off your secured credit card on time in full, going up another no annual fee credit card, see When the almighty credit scoring algorithm calculates your score, they do so by combining your total number of on-time payments with your overall credit utilization, and so in this example.

Having more credit available to you is going to help your score now, if you want some examples of no annual fee credit cards that i personally like, we have the bank of america, cash rewards card, the city, double cash, rewards card, the chase, freedom flex and the Blue cash every day from american express from there just continue doing the same things that you've done before put a few small charges on the card and then just pay it off in full by the time it's due then. Fourth, after about 18 months, you should have built up a credit score around 740, which begins to give you the lowest interest rates anytime. You leverage your money now i realize that's still not an 800 perfect credit score, but once you've built up the foundation of your credit, all it takes is just time and patience to get there and for something that's totally free. That takes you just a few minutes of work every single month.

It's worth it to do as soon as possible. The second best investment that you can make in your 20s is simply a broad market index fund and, if you're thinking ooh that sounds confusing. It's absolutely not, in fact, this could be the simplest and most effective investment that you ever make in your 20s and here's. Why now? For anybody unaware an index fund is basically just a big basket of stocks that you could buy into so that way you own a small portion of everything, it's kind of like walking into the cookie store and seeing a hundred different cookies all for sale at a Dollar, each and at that price it's difficult to go and buy all of the cookies to try to find the best ones.

So, instead, the cookie store has another option: they have a 20 sample box that has a small piece of all 100 cookies. All in one place that way, you're getting a little bit of everything for way less than it would cost to buy each of those individually. The same thing also works for stocks when it comes to an index fund. Instead of going to the stock store and buying each stock individually at full price, you could just buy an index fund that contains all of them for one low price.

The advantage to doing this is that so far index funds have outperformed 99 of active investors over a 20-year period, and also doing this is very little work. There's no need to research, individual stocks or stress about the price going up and down for seemingly no reason. Just buy into an index fund on a consistent basis, and that's it and best of all one of the major advantages of doing this is that index funds cost almost nothing to manage. That's because a lot of these indexes are very easy to put together and there's not a lot of overhead, so they pass a lot of those savings back onto you as the customer.

And lastly, you got a huge advantage of diversification, which means long term. Your investment is going to be a lot more stable and, even though sure it's kind of top heavy towards tech, you still have 400 other companies to balance things out. If you want specific examples, it usually depends on which brokerage you're with, but if you want the s p 500, you could do something like v fixed with vanguard, swift, pick, switch all schwab or fix psychs with fidelity, or you could also do spy, which you could Buy anywhere, i like this because it focuses on us companies which so far have had a solid history of growth. On the other hand, if you want the entire stock market, all at once, you could go with something like dt, sax or vti, with vanguard.

Swiss sticks with schwab or fist rocks with fidelity. It really doesn't matter so much what you choose, because they basically all distract the same thing, but in the big picture for the most passive investors, who just want something that they could buy into consistently long term without a lot of research or work. These give enough diversification that long term they could end up doing really well, especially if you buy them in your 20s. However, we shouldn't just stop there, because now that we're on the topic of index funds there's another one that you could potentially buy and just hold on to forever.

But before we go into that, listen summer's already coming to an end and we're about to enter fall. But that doesn't mean i can't follow up with making sure you get covered with life insurance, and thankfully our video is sponsored today. Policy genius is here to help policy. Genius makes it easy to compare quotes from over a dozen top insurers all in one place, and you could save 50 or more on life insurance by comparing quotes with policy genius.

Now i get it. Insurance is something you never want to think about needing, and it's so easy to keep putting it off, while you're busy watching youtube videos, but sometimes the peace of mind associated with knowing that your loved ones are covered and financially taken care of. In the event, something happens makes it entirely worth it, plus it's incredibly easy head to policygenius.comgram and then in minutes you can work out how much life insurance coverage you need and compare personalized quotes to find your best price. Then, when you're ready to apply the policy genius team will handle all the paperwork and scheduling for free and best of all policy.

Genius never sells your information to third parties, they don't add on any extra fees and their licensed experts work for you, not the insurance companies, so you could trust them to help you navigate every step of the buying and shopping process along the way so head to Policygenius.Comgram to get started right now and with that said, let's get back to the video all right so now that we got that taken care of the next option that you could look into is what's called an international index fund. This is an index fund that covers the entire market outside of the united states, including emerging markets, europe, the pacific, the middle east, north america and two percent other some of the largest holdings here are the companies that we use day-to-day. Like semiconductors video games, alibaba, samsung, nestle, toyota and so on, the advantage here is that, as other countries grown develop, their stock price increases and therefore you make money now. The thing is over the last 10 years, international index funds like this have remained fairly flat and as it is right now, the u.s market has been on a tremendous bull run that has outperformed pretty much every other market out there, but that isn't guaranteed.

To always happen throughout history, there have been times where the international index fund has outperformed the united states like throughout the 1980s and 2000s, and i think it's worth taking into consideration that possibly that could happen again, plus, even if it doesn't outperform the united states. You're still getting paid a much higher dividend in the process and you're diversifying your investments for more stability. Day-To-Day that's why i've allocated about 20 to my total stock market portfolio to an international index fund, because most likely the us is not always going to be in the lead all the time and when you're young now is the time to make those investments that will Eventually become the foundation for everything else you do later on in life, in terms of which ones to buy. You could usually just go to google and type in my stock market.

Brokerage international index fund make sure to subscribe, and then a list will come up with the exact matches or if you just want me to list off a few of them just so you have them here. You could go with something like fispa dix from fidelity shift from swab or vixus from vanguard. Those might be able to get. You started in the right direction and all of them are pretty similar.

Now again, i probably wouldn't go crazy here and invest all of your money in a wild wall street bets yolo, but for 10 to 30 percent of your overall portfolio. This could wind up being a really good investment to make in your 20s and fourth, we have my personal favorite that single-handedly got me obsessed with investing when i was 21 years old and that would be real estate. Now. Here's the thing with real estate, especially right now, it's not cheap.

The market is the most competitive it's ever been in. History inventory is absurdly low and it could be a challenge to even save enough money for a down payment in the first place, especially in your 20s. However, i wouldn't let that dissuade you from jumping in, because i believe, with consistency, frugal living and the discipline to wait to find the right property. Real estate could very well be within your reach, especially if you have a perfect credit score that you got for free.

Anyway, for me, there are six main reasons why this could be such a lucrative investment in your 20s first, the reality is, everyone needs a place to live. Housing is something that a new company can't just go and magically replace one day can't be outsourced and it can't be made cheaper online and then sold by alibaba, or you know what who knows. Maybe it can point being? Everyone needs a home and, if they're not buying, they're renting, so this encompasses pretty much everybody. Second, a bank would lend you almost all the money you need to buy a house as long as you're able to come up with the 10 to 20 down payment.

This gives you a huge advantage over stocks and that you have complete control over the property without having to pay for the entire thing up front or being margin called in the event. The market drops the third, because you have complete control over the house. You could make strategic renovations to increase that property's value and increase the amount you could rent it for, for example, when i first started buying real estate, i purposely looked for places that were just a little bit worn down. They were a little bit dated and with a few months of work, i could turn them into looking brand new and something like that also has the power to increase the value of your home quite a bit.

Fourth, the property could also serve multiple purposes. You could move in as a cheaper alternative to renting or you could rent it out to somebody else as an immediate return on your money. I actually took this a step further by combining the two by buying a two unit, building moving in one side and then renting out the other to cover my cost of living. That's how i was essentially able to live for free by buying multiple buildings in the middle of los angeles and then repeating that strategy to eventually increase my passive income, the fifth speaking of low interest rates.

I see real estate as a massive hedge to inflation. Long term, that's because when you get a mortgage from a bank, you're borrowing money and getting to pay it back over 30 years and the benefit here is that you're able to pay it back with future dollars, which most likely are going to be worth way. Less than the money is today and six, there are just so many great tax advantages in real estate. Pretty much every single expense is a write-off against your rental income.

Like property taxes, insurance, hoa repairs, you name it not to mention you could also depreciate the value of the property over 27 and a half years. So if you have a building, that's worth 275 dollars. You could write off the first 10 000 of profit that you make essentially making that money tax-free. Now, in terms of where to get started, i have a 30-minute video that details everything you need to know, but as the quick sparknotes version here, here's what i recommend.

First, buy a home for yourself. This allows you to get a loan as a primary residence, which means you get a lower interest rate, less money down and more favorable terms than had you just bought a rental property upfront. The second speaking of that you should buy a home that you could fix up again. I stick with really simple cosmetic repairs that i could finish in about two to three months.

Doing that helps increase the value of the property and then subsequently, what you would be able to get for it for rent and third, ideally buy a two to four unit. Building that you could house hack, see banks call four units and under residential for loan purposes and as long as you agree to move in one of the units at least for a year, they will lend you a mortgage for the entire building. Even though, technically you plan to rent most of it out, if you do this correctly, the rents from the other unit should be able to cover your entire cost of living and you get a free place to live while the rental income helps pay down the mortgage. Now i am certainly simplifying things a lot, but this is one of the most popular strategies of real estate investing and for good reason.

I have several videos that i've done in the past that detail everything you need to know. So if you want to see them i'll, just link it down below in the description and fourth, your 20s could be the perfect time to do this, because you have the time to learn and pay it off before you're too old to enjoy all of that money. Like just consider this, you could spend the next year seeing homes every single weekend and by the age of 30, save up enough for a down payment on a three unit, building that you could use as a primary residence. Even if you move out after a year or two, you still keep the building.

It's still making you rental income and after 30 years that building will have been paid off and everything you make will be pure profits, with the exception of property, taxes, insurance, vacancy repairs and maintenance. But you get the point the sooner you start the sooner. This is gon na be paid off and, lastly, number five: we couldn't have a video about the best investments to make in your 20s without talking about cryptocurrency. Now, here are my thoughts on this historically cryptocurrency still is unproven.

We don't have a hundred years of data to back this up. There really is no precedent for this to follow. We have no idea what could happen in the future, but over these last 10 years i got ta say the stats are quite impressive. Bitcoin was the best performing asset of the decade, returning more than 10 times more than the stock market.

It was also the best performing asset of 2020 outpacing everything else. So i think, there's certainly something to be said about taking it more seriously and looking for a way that you could incorporate this in your own investment portfolio for myself, i currently own about three and a half percent of my entire portfolio and cryptocurrencies split between bitcoin And ethereum and my goal is to get that to five percent by the end of the year. There's certainly a chance. It drops ninety percent and there's certainly a chance that 10x x's from here, but given the newness compared to everything else, i've just mentioned like buying real estate or investing in the stock market.

My thought is, it's worth it just to give it a shot and see what happens plus in your 20s, even if it does become completely worthless and you lose 90 percent of your money. You still have the rest of your life to financially recover. It's not like you're, 60 years old and a few years away from retirement, and then you yolo, all of it into a random altcoin, promoted by a twitch influencer who jokes about it going to the moon. But as it turns out, it was a rug, pull and the price plummets and you lose almost all of your money.

But you clutch onto that last bit of remaining hope that it might eventually recover. But then the final nail in the coffin is the coffeezilla calls. It a scam all right, you know i'll stop. Who knows if it'll continue to be the best performing asset of each decade, but even a one to five percent allocation could end up making you a lot of money.

If it does - and i got ta say the most important aspect from all of this is simply just to start no joke if you could just begin as soon as this video is over and then get in the habit of investing consistently. I promise your future self is going to thank you unless, of course, you're yoloing everything into wall street bets call options and then buying pixelated whale nfts. Probably don't do that so with that said, you guys thank you so much for watching. I really appreciate it.

As always, make sure to destroy the like button subscribe button and notification bell also feel free to add me on instagram, my posts are pretty much daily, so if you want to be a part of it, there feel free to add me there. As on my second channel, the gram stefan show i post there every single day, don't post here. So if you want to see a brand new video from me every single day, make sure to add yourself to that. And lastly, if you want a completely free stock, that's now worth potentially all the way up to a thousand dollars, use the link down below in the description and sign up for public, using the code, graham and plus, i'm posting all of my own stock trades on There, so if you want to be a part of it, the link is down below in the description, let me know which free stock you get.

Thank you so much for watching and until next time.