If I want to become wealthy as a 20 year old, should I invest in real estate or start a business?
This question and answer originally appeared at Quora.
Create and build up a business.
Property has been good for many in the past few decades largely due to increasing levels of debt, easy monetary policy and a little speculation (it has gone up in many places, simply because it has previously gone up).
I would say this is true of UK, Canada, Australia, New Zealand and the USA – there are probably other countries.
You should focus on creating and building real wealth – once you have built wealth then you can invest into property/real estate along with other assets such as shares in the attempt to maintain the wealth you have created and built.
If you build a good business you will not only help yourself, but will help others because no one will buy your products or service unless you provide something better than what is already out there.
This is how we improve on our prosperity – chasing real estate returns isn’t really helping anyone – and I very much doubt that at the present time it will help you become wealthy.
I hope that helps.
This answer first appeared here.