The best investments you can make in your 20s and 30s

Investing money stocks app

If your goal is to get ahead in life and set yourself up for a comfortable retirement—not something you typically think about in your twenties and thirties—the key is to generate a passive income through investment.

But what are the best investments you can make to grow your wealth?

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Assets with potential for growth

The stock market has been a rollercoaster due to the ongoing worldwide pandemic. Investing in stock continues to be a good choice, particularly since you have time on your side when you’re young. Take advantage of the price crashes to get in on some of the traditionally top performers. With any investment there is always a degree of risk, so be sure to only use money you can afford to lose. Growth assets provide higher returns. They may be at higher risk, but the rewards are also higher.

Raiz and Spaceship Voyager are both great micro investing apps for young and beginner investors. One reason many people avoid investing in shares is because they do not know which shares are best to buy to suit their financial goals. Both apps allow you to dip your toes into the share market with as little of investments of $5, as opposed to a $500 minimum spend on CommSec. You select one portfolio to invest in. Each are designed by experienced brokers to give you the best chance of accumulating extra money. Each portfolio gives you exposure to a range of different companies, meaning you are not just depending on the performance of one, but you are simply buying shares in multiple companies at a time. Over an extensive period of time, say 10 years, you could have potentially built more money on one of these apps than what you would on an interest earning savings account.


Many Australians hit their fifties before realising retirement isn’t that far off and panic over not having nearly enough money to continue to live comfortably. By comfortably, we mean having enough money to pay for the essentials and fund a hobby or extracurricular activities. The Australian Super Fund Association has calculated that as a couple you would need $640,000 to maintain your lifestyle, and that’s providing you don’t have any ongoing medical costs. Most of us in that age group, fall well short of those recommendations.

Before you throw all your money into super, make sure you are aware of the concessional caps, so you don’t get taxed at a higher rate. It is definitely worth considering setting up salary sacrificing, so your employer designates an agreed portion of your pre-tax wages toward your super fund. It also reduces the amount of tax you are required to pay on your income. We recommend seeking independent financial advice prior to agreeing to a salary package to minimise fringe benefit taxes.


It might seem impossible to get a foot on the property ladder with the increasing prices and talk of the banks tightening lending restrictions does make it more difficult, but if you can manage to save up a deposit for an investment property, you can benefit from the low interest rates. Look for opportunities where you can purchase a dual key property, two rental incomes for the price of one.

Term deposit

Setting up a term deposit is a little like setting up a savings account. You deposit money and leave it in a bank account for a predetermined amount of time to accrue interest. The longer time period you commit to, the higher the rate of return. Unlike a savings account, you don’t have access to the money, nor can you make extra deposits. However, it’s a good way to make sure you’re not tempted to dive in and spend any money.  Most banks require a minimum deposit ranging from between $1,000 to $5,000. Make sure you shop around to get the best rates.

The earlier you start investing, the sooner you will be able to grow your savings and plan for long-term goals like early retirement, travelling the world or purchasing the home of your dreams.

Article produced in collaboration with Gerry Incollingo, the MD of LCI Partners, a firm that specialises in accounting advisory, lending, wealth, property, insurance and legal.

This content is not financial advice and is purposed for discussion and information purposes only.

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