The 7 Best Purchases to Make in Your 20s

TL;DR

Making smart money moves in your 20s can buy lifelong freedom instead of just 10 years of fun. The seven purchases are a side hustle, an index fund inside a Roth IRA or ISA, a plane ticket, education, real estate, cheap reliable transport, and Bitcoin. Fun and financial discipline are not mutually exclusive.

Transcript

Hi guys, it's Mark. So your twenties are a truly amazing time. Most people in their twenties don't worry too much about what they're buying, cause they're most likely not married yet and they're just looking to have a good time. But the truth is if you make smart financial decisions in your twenties, like I managed to do, then you can set yourself ... Read More

Key Insights

• A side hustle is one of the best ways to grow wealth in your 20s despite being high risk; Mark flipped a used car every week, detailing and reselling it, which cleared his debt and funded escaping his nine-to-five job.
• Investing an extra $200 per month in a simple S&P 500 index fund, which has historically averaged a 10% yearly return, grows to over $2 million in 45 years, and is completely tax-free inside a Roth IRA or ISA.
• An index fund lowers risk because it holds a basket of many companies, like owning a flock of chickens instead of one; a Roth IRA or ISA acts like an impenetrable 'chicken fortress' that shields profits from capital gains tax.
• Buying a plane ticket builds confidence and contacts; Mark's twenties travel later helped him produce products in China, and credit card points let you travel for free if you pay the balance in full each month.
• Spending money on education is a no-brainer because everyone is paid based on perceived value, so learning a new skill dramatically boosts wealth; young people learn faster and retain knowledge for life.
• Real estate accelerates net worth fast; Mark bought a property for $100,000 in his twenties that is now worth over half a million, providing consistent rental cashflow and a tangible asset to leverage for the best loan rates.
• House hacking lets you buy property despite high prices: put a deposit on a house and rent out rooms so tenants cover your mortgage, or buy a duplex, or become an Airbnb host so others pay for your real estate.
• A cheap, reliable used car is essential because it lets you work on your own schedule, meet deadlines, and seize new opportunities; Mark regrets buying a flashy Ford RS Turbo just to show off to friends.

Questions & Answers

Q: What are the 7 best purchases to make in your 20s according to Mark Tilbury?

Mark Tilbury recommends seven purchases: investing in a side hustle, buying an index fund inside a Roth IRA or ISA, buying a plane ticket to travel, spending money on education, buying real estate, purchasing cheap and reliable transportation such as a used car, and finally Bitcoin. He says these are things he personally did to become a millionaire starting from zero, not formal financial advice.

Q: How much can $200 a month in an S&P 500 index fund grow to?

According to the video, if you save or make an extra $200 per month and invest it in a simple S&P 500 index fund, which has historically averaged a 10% yearly return since it was created, then in 45 years you will have over $2 million. If invested inside a Roth IRA in the USA or an ISA in the UK, that money will be completely tax-free. Mark treats this as a background backup safety net.

Q: Why is an index fund less risky than a single stock?

An index fund holds a basket of many different companies, so it is far less risky than putting all your money in one stock. Mark compares it to owning a flock of chickens instead of just one: a single chicken might die of disease, get eaten by a fox, or get lost, but losing an entire flock is very unlikely. Spreading money across many companies reduces the chance of a total loss.

Q: What is house hacking and how does it work?

House hacking is a way to afford property in your twenties. You put down a deposit on a house and get a mortgage, then rent out a couple of rooms so tenants pay off your mortgage for you. For example, if the mortgage payment is $1,000 a month, renting rooms can cover it. Alternatives include buying a duplex, one house split into two with separate entrances, or becoming an Airbnb host so others pay for your real estate.

Q: How can credit cards help you travel for free?

Mark explains you can open a new credit card, meet the minimum spend, and earn the points bonus, which you redeem for free flights. It isn't extra spending because you put your normal expenses on the card and pay the balance in full each month to avoid interest. As a bonus, this builds a great credit score, giving access to better mortgage rates later. He once got a free California trip and closed a business deal at the same time.

Q: Why does Mark say spending money on education is worth it?

Mark says education is one of the most important yet overlooked purchases because everyone is paid based on their perceived value, so learning a new skill dramatically boosts your wealth. Young people learn faster and retain knowledge for life. He invested in books such as 'Think and Grow Rich,' which he bought for about $5 and calls one of the best investments of his life. He warns against overpriced courses sold by someone standing in front of a Lambo.

Q: How did Mark's car flipping side hustle work?

After falling into bad debt before turning 20 and being bullied at a repetitive job making wooden trash cans, Mark needed a plan. When he learned his friend's dad was a car dealer with trading cars, he bought a car he liked every week, did a full detail job, advertised it, and sold it. This left him with little cash and no car to drive, but after a year it cleared his debt and gave him considerable savings that funded his business.

Q: Why does Mark recommend a cheap used car over a nice one in your 20s?

Mark says a cheap, reliable used car is essential because it lets you work on your own schedule, meet deadlines, and take advantage of new opportunities. In his early twenties he made the mistake of buying a really nice car, a Ford RS Turbo, just to show off to his friends and try to get a girlfriend. He frames the flashy purchase as a mistake compared with reliable, affordable transportation that supports your income.

Summary & Key Takeaways

• Mark argues that smart financial decisions in your 20s set you up for lifelong freedom rather than just 10 years of fun, and that fun and discipline are not mutually exclusive. He shares seven purchases that helped him become a millionaire starting from zero.

• The first purchases target income and growth: investing in a side hustle (he flipped cars), buying an S&P 500 index fund inside a tax-free Roth IRA or ISA where $200 monthly can become over $2 million in 45 years, and buying plane tickets to build contacts.

• Education is a top overlooked purchase since pay reflects perceived value; Mark chose books like 'Think and Grow Rich.' He also recommends real estate via house hacking or Airbnb, cheap reliable transportation over flashy cars, and finally Bitcoin.