Your 20s is a special time in your life.
You are young and active. Ready to try new things and get your feet wet. And you probably don’t have quite the number of responsibilities yet you will have when you’re older.
As a result, your 20s are the time to bust ass.
If you’re working a cushy job in your 20s, you’re doing it wrong. Now isn’t the time to relax and settle into a mediocre career. On the contrary, your 20s are the time to prove yourself.
If you are in your 20s and want to get rich, here are 6 things you need to be doing:
- Say “yes” to everything: Now is the time to try new things. When an opportunity comes up, say “yes” even if you aren’t sure you’re ready. Say yes to everything, then double down on the things that work and stop those that don’t. This is how you figure out exactly what you’re good at.
- Start saving early: The earlier you start saving, the more time your money has to grow (provided you’re investing it…more on that below). Set a budget and stick to it, and make sure to put some money into a savings account each month to build up an emergency fund. If you don’t have a little money set aside for an unexpected expense, you’re living your life at risk.
- Invest in yourself: Invest in your education and improve your skills to earn more money in the long run. The more valuable your skills are, the more you can charge for them. When it comes to investing in yourself, don’t limit yourself. I recommend spending lavishly on books, training, and other resources to help improve your marketable skills. Don’t skimp in this area.
- Invest in assets: Investing in assets such as stocks, real estate, or a small business can help grow your wealth over time. Be sure to do your research and invest in things you understand. The stock market has a long history of making many patient investors rich. Since you’re in your 20s, use the advantage of time and compound interest to grow your money.
- Live below your means: It’s important to spend less than you earn so you can save and invest more. Avoid lifestyle inflation, and be mindful of your spending. Don’t immediately spend every raise or bonus that you get. Spending extra money means you will never build wealth.
- Stay disciplined: Building wealth is a marathon, not a sprint. It requires discipline and consistency. Stay focused on your financial goals, and don’t let setbacks discourage you. For instance, the market wasn’t kind to investors in 2022. That’s okay. The S&P 500 Index gained over 25% in 2021. The market will ebb and flow. To make money in the market, stay call and keep investing.
Take advantage of the energy you have in your 20s to build a money-making career. Start saving and investing as early as you can. Let compound interest in the market build wealth for you over time. This is the exact framework millions of people use to build wealth.
Your future self will thank you.