The 7 Best Purchases To Make In Your 20s To Invest and Build Wealth

1. Invest in a Zone of Serendipity

One of the most impactful investments you can make in your 20s is choosing to live in a 'zone of serendipity.' Simply put, this means placing yourself in environments where opportunities naturally present themselves. Surrounding yourself with ambitious, talented people creates a fertile ground for connections and success.

Take it from my experience: I was having coffee with a founder friend, brainstorming ideas for his startup, when a woman at the next table kept glancing at us. At first, I didn’t think much of it. But as we were about to leave, she approached my friend, expressing interest in his business. She mentioned that her VC firm was hosting an event soon and invited him to join. This was a perfect example of how living in the right environment can create unexpected opportunities.

Now, I know it’s expensive to live in places like New York City, DC, or San Francisco, but the connections and knowledge you gain are well worth the cost. These environments push you to work harder and think bigger. Plus, you're always one conversation away from meeting a mentor, collaborator, or someone who has solved the very problem you're facing. Being in a zone of serendipity doesn’t guarantee success, but it drastically increases your chances of encountering life-changing moments.

2. Start a Side Hustle

While working in Corporate America, I quickly realized that relying on a single salary wasn’t enough to build wealth. I hated my job, working 70 to 80 hours a week in a toxic environment, and knew I needed a change. What I learned is that your employer’s incentive is to pay you as little as possible. They’ll always find an excuse not to give you a raise or a bonus, like my friend who didn’t receive a year-end bonus despite hitting all his targets.

Even if you love your job, starting a side hustle in your 20s is a powerful way to earn extra cash, learn new skills, and invest in your future. One of my first side hustles was an e-commerce store where I sold phone cases. It wasn’t easy—I had to learn everything from scratch. But if I were to start again, I’d use a tool like Build Your Store, which uses AI to help you set up a fully functioning Shopify store in minutes. It’s a hands-off business model that lets you sell without handling inventory or fulfillment.

Starting a side hustle isn’t just about making money—it’s about developing the skills and mindset to grow wealth. And it’s often easier than you think.

3. Invest in Tax-Free Wealth Growth (Roth IRA)

In your 20s, it’s crucial to think about how to grow your wealth tax-free. A Roth IRA is one of the best tools to do this. I’ll admit, when I first heard about Roth IRAs, I dismissed them, thinking I was too young to care about retirement. But once I understood the power of compounding, I immediately took advantage.

With a Roth IRA, you can contribute money you’ve already paid taxes on, then watch it grow tax-free. When you’re ready to withdraw at age 59½, you’ll pay no taxes on your contributions or your investment gains. The sooner you start, the better.

Consider this: Samantha starts investing $5,000 every year at age 25. By 35, she’s contributed $50,000. Meanwhile, John waits until 35 to start investing and puts in $5,000 each year until 65. By the time they’re both 65, Samantha has over $1.3 million, while John only has $900,000. Even though John invested three times as much, Samantha's earlier start gives her a massive advantage.

The key takeaway? Start early. A Roth IRA gives you the power to invest tax-free, and by the time you retire, your money will have compounded into something much larger.

4. Eliminate High-Interest Debt

One of the smartest purchases you can make is paying off high-interest debt. The average American has about $6,500 in credit card debt, and many don’t realize how much this costs over time. Even if you only owe $1,000 with a 25% interest rate, you're paying $250 a year in interest. That’s money straight out of your pocket.

If you have debt like this, focus on paying it off before investing elsewhere. Paying off debt with interest rates above 7% is a guaranteed return on your money. For example, if you use $1,000 to pay off credit card debt instead of investing, you’re essentially getting a guaranteed 25% return. That’s a return far better than what most investments can offer, especially in your 20s.

5. Travel for Personal and Professional Growth

Many people don’t realize how valuable travel can be in your 20s. Only 42% of Americans have a valid passport, yet traveling exposes you to new ideas, cultures, and networks. My own experience of traveling through Asia for six months was transformative. I met entrepreneurs who changed the way I think about business and money.

For example, in Japan, I learned about Kaizen—continuous, incremental improvements. In Taiwan, I discovered the concept of the minimal viable product, where businesses test new ideas at low cost. These experiences gave me fresh perspectives on entrepreneurship that I could never have gained from a book or video.

Additionally, traveling can be more affordable than you think. Hostels cost only $3 to $5 a night, local buses and trains are cheap, and meals at local restaurants can be as low as $3. Traveling on a budget is possible, and the experiences you gain can be invaluable, both personally and professionally.

6. Invest in Your Health

In my early 20s, I didn’t prioritize my health. I was too focused on work, and fitness seemed like a chore. However, after hearing a story about my friend’s stepdad—a real estate mogul who passed away without enjoying his wealth due to health issues—I realized the importance of investing in my health.

Exercise and a healthy diet are like long-term investments. They pay dividends in the form of more energy, better focus, and a reduced risk of chronic diseases. Whether it’s weightlifting, running, or even just walking, investing in your health now creates a foundation for a high-functioning, high-energy lifestyle that will serve you for years to come.

7. Use Psychological Architecture for Better Financial Decisions

To make smarter financial choices, consider implementing psychological architecture into your life. Companies like Amazon use this to make it incredibly easy to spend money. You can use the same principle to create systems that help you save and invest more effectively.

For example, I have a separate email for shopping promotions and discounts. I don’t check it constantly—only when I’m ready to make a purchase. This reduces impulse buying and keeps me financially disciplined. Another trick is setting up automatic transfers from my checking account to my savings and investment accounts. This ensures I’m always saving and investing, without having to think about it.

Conclusion

Building wealth in your 20s requires more than just saving money—it’s about making strategic investments in your environment, side hustles, health, and finances. These seven investments, when implemented with discipline, will put you on the path to financial success and personal fulfillment. Start now, and watch your wealth grow exponentially.