Home > Personal Finance > 8 Smart Purchases to Make in Your 20s

Comments 0 Comments

A smart purchase is just another way of saying awesome investment. You might feel strapped for cash in your 20s, but smart buyers will make purchases that will last them into their 30s and beyond. While it’s always tempting to spend your paycheck on a new pair of heels or drinks at happy hour, your future self will thank you for putting that money toward items that’ll pay for themselves over time.

Here are eight smart purchases to make in your 20s that can contribute invaluably to your bank account.

1. A Coffee Maker

Your morning and mid-day pick-me-up cups of coffee from Dunkin’ Donuts and lattes from Starbucks can quickly add up. In fact, you can make $100,000-plus by skipping your morning coffee and making it at home (Seriously. It’ll involve some strategy and take about 40 years, but, still. Go here to find out how).

Consider investing in a quality coffee maker that will withstand many uses. The machine will make your morning coffee more convenient and save you cash. (Some perspective: 72 Venti coffees from Starbucks will run you close to $200, depending on where you live, while a 72-pack of Starbucks French Roast K-Cups costs around $50.) A French press is another option.

2. A Nice Suit

It’s a good idea to invest in a nice suit or business apparel than can be worn to job interviews or important events. Ensure that it fits or get it tailored. A suit may not seem like the most exciting investment in the world, but it is a practical one. If you’ve got this item on your checklist, you can wait for a sale or at least find the perfect piece instead of rushing a week before the big event and splurging on an outfit you don’t love (or, worse, can’t really afford).

3. A Hard Drive

Again, this purchase may not seem particularly fun but it is an item your future self will thank you for. Hard drives are great for backing up important files and opening up more storage on your computer and phone.

4. A Reliable Laptop

A sturdy laptop can be an investment for your leisure time and work life. We do so much work online that it makes sense to invest in a laptop that will have enough storage, battery life and longevity to get the job done. Plus, if you’re still in college or are a very recent graduate with a student ID, there are discounts available for some tech products.

5. A Quality Mattress & Couch

Considering most people spend a large chunk of their day sleeping (or on their phone) in their bed, it makes sense to invest in a mattress.Test out options and sleep on it — literally and metaphorically. Before you invest in a mattress, be sure to read these four mattress shopping gotchas to ensure you get the best deal possible.

The same goes for a couch, another piece of furniture you’ll often spend time on. Kerri Moriarty, of Boston startup Cinch Financial, a financial planning software company, says investing in a quality couch was one of the best decisions she made in her early twenties. “Seven years later the couch has traveled with me to five different apartments, still looks trendy and modern in the space, and is in great shape,” Moriarty said. “I’m glad I invested when I did so I haven’t been uncomfortable and replacing it every couple years.”

6. A Filtered Water Bottle

While plastic water bottles often come in handy, they’re not great for the environment — or your wallet. A reusable filtered water bottle will allow you to stay hydrated on the go without having to constantly repurchase bottles of water. Water bottles generally aren’t expensive, but there will be costs associated with replacing the filter, which is done on a monthly to bi-monthly basis depending on how often the bottle is used. The process is simple: Fill up your bottle with tap water and the built-in filtration system will do the work.

7. An Online Course

If you’ve got a hunger for learning, seeking to pursue a passion project or trying to pick up new skills for a side hustle, an online course can be a great investment. There are endless courses to take that will enrich your life whether you’re learning social media marketing, a new language or even basic coding. Plus, if the course is something that can benefit your job and workplace, you may be able to get your company to pay for it. It doesn’t hurt to make a proposal full of the potential benefits that a particular course could have on you and, by default, your company.

8. Plane Tickets

Yes, sometimes a “smart purchase” involves rewarding yourself — and, really, there’s no better time to spend on experiences than your 20s. Plus, your trip doesn’t have to break the bank. A good travel rewards credit card or airline loyalty program can help you rack up miles to pay for the flight. (Remember, credit cards that offer rewards for your travels tend to require excellent credit. You can see where your credit currently stands by viewing two of your scores for free on Credit.com.) Other ways to save on travel include signing up for fare alerts, traveling on off-peak days and looking into hostels or vacation rentals.

When traveling, don’t forget to invest in some great luggage. Marc Roche, co-founder of Annuities HQ, a retirement advisory network, emphasizes the importance of traveling while you’re young and getting the bang for your buck.”By choosing a well-crafted piece, you’ll be able to pass it — and your stories of adventure — on to the next generation,” Roche said. If you purchase quality travel gear, you’ll be able to use it long-term and have more extra cash for travel.

Image: elenaleonova

Comments on articles and responses to those comments are not provided or commissioned by a bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by a bank advertiser. It is not a bank advertiser's responsibility to ensure all posts and/or questions are answered.

Please note that our comments are moderated, so it may take a little time before you see them on the page. Thanks for your patience.

Certain credit cards and other financial products mentioned in this and other sponsored content on Credit.com are Partners with Credit.com. Credit.com receives compensation if our users apply for and ultimately sign up for any financial products or cards offered.

Hello, Reader!

Thanks for checking out Credit.com. We hope you find the site and the journalism we produce useful. We wanted to take some time to tell you a bit about ourselves.

Our People

The Credit.com editorial team is staffed by a team of editors and reporters, each with many years of financial reporting experience. We’ve worked for places like the New York Times, American Banker, Frontline, TheStreet.com, Business Insider, ABC News, NBC News, CNBC and many others. We also employ a few freelancers and more than 50 contributors (these are typically subject matter experts from the worlds of finance, academia, politics, business and elsewhere).

Our Reporting

We take great pains to ensure that the articles, video and graphics you see on Credit.com are thoroughly reported and fact-checked. Each story is read by two separate editors, and we adhere to the highest editorial standards. We’re not perfect, however, and if you see something that you think is wrong, please email us at editorial team [at] credit [dot] com,

The Credit.com editorial team is committed to providing our readers and viewers with sound, well-reported and understandable information designed to inform and empower. We won’t tell you what to do. We will, however, do our best to explain the consequences of various actions, thereby arming you with the information you need to make decisions that are in your best interests. We also write about things relating to money and finance we think are interesting and want to share.

In addition to appearing on Credit.com, our articles are syndicated to dozens of other news sites. We have more than 100 partners, including MSN, ABC News, CBS News, Yahoo, Marketwatch, Scripps, Money Magazine and many others. This network operates similarly to the Associated Press or Reuters, except we focus almost exclusively on issues relating to personal finance. These are not advertorial or paid placements, rather we provide these articles to our partners in most cases for free. These relationships create more awareness of Credit.com in general and they result in more traffic to us as well.

Our Business Model

Credit.com’s journalism is largely supported by an e-commerce business model. Rather than rely on revenue from display ad impressions, Credit.com maintains a financial marketplace separate from its editorial pages. When someone navigates to those pages, and applies for a credit card, for example, Credit.com will get paid what is essentially a finder’s fee if that person ends up getting the card. That doesn’t mean, however, that our editorial decisions are informed by the products available in our marketplace. The editorial team chooses what to write about and how to write about it independently of the decisions and priorities of the business side of the company. In fact, we maintain a strict and important firewall between the editorial and business departments. Our mission as journalists is to serve the reader, not the advertiser. In that sense, we are no different from any other news organization that is supported by ad revenue.

Visitors to Credit.com are also able to register for a free Credit.com account, which gives them access to a tool called The Credit Report Card. This tool provides users with two free credit scores and a breakdown of the information in their Experian credit report, updated twice monthly. Again, this tool is entirely free, and we mention that frequently in our articles, because we think that it’s a good thing for users to have access to data like this. Separate from its educational value, there is also a business angle to the Credit Report Card. Registered users can be matched with products and services for which they are most likely to qualify. In other words, if you register and you find that your credit is less than stellar, Credit.com won’t recommend a high-end platinum credit card that requires an excellent credit score You’d likely get rejected, and that’s no good for you or Credit.com. You’d be no closer to getting a product you need, there’d be a wasted inquiry on your credit report, and Credit.com wouldn’t get paid. These are essentially what are commonly referred to as "targeted ads" in the world of the Internet. Despite all of this, however, even if you never apply for any product, the Credit Report Card will remain free, and none of this will impact how the editorial team reports on credit and credit scores.



Your Stories

Lastly, much of what we do is informed by our own experiences as well as the experiences of our readers. We want to tell your stories if you’re interested in sharing them. Please email us at story ideas [at] credit [dot] com with ideas or visit us on Facebook or Twitter.

Thanks for stopping by.

- The Credit.com Editorial Team