Why Your 20s Is The Most Important Time To Invest In Yourself (2024)

Ah the 20s… You can say what you like about 30 being the new 20, but let’s be honest — there are no years like those in your 20s. Although we have learned a lot during our years on this earth, much still remains a mystery and the glimmer of childhood excitement has yet to completely drain from our veins.

They are the years when making mistakes is frowned upon, yet remain acceptable. Your 20s are the years you should spend investing in yourself. They are the prime years of your life and the years that in large part will decide how you live the rest of your life.

30 is only the new 20 if you’re successful by 30 — otherwise it’s just 30. Here are five reasons you should invest in yourself in your 20s.

1. It’s The Time When You Are Beginning To Know Yourself Well Enough.

We spent the entirety of our teen-hood experimenting with hairstyles, clothing, music, drugs and ways of speaking. Now that we are in our 20s, we understand ourselves a whole lot better than we did just half a decade ago. During your 20s you will — hopefully — get to understand the real you. You will begin to understand what it is that you want out of life and what will make you happy.

These years should also be the years that you decide what the best way of achieving said happiness should be. You should set goals and make plans in your 20s. You now know what you want and what you are capable of — your strengths and your weaknesses. You know what it is that you need to work and where you want to go. The only thing left is deciding how to get there — and actually beginning the journey, of course.

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2. Your 30s Will Be Too Late.

In all honesty it’s never too late to set your life in the right direction. However, doing so in your 20s will make the rest of your life much more enjoyable. What you have to understand is that no one succeeds right away; it takes time. Even when you do begin your journey towards success and happiness, you will get lost multiple times and you will experience setbacks and failures.

It’s also likely that by getting your hands dirty, you will come to realize that you were wrong in thinking that you’d enjoy living the life you thought you’d enjoy living. Most people — if not all — have to scrap their plans several times and start from a clean slate. It takes roughly 10 years to master anything. Start when you’re 20 and you’ll be a master by 30. Start when you’re 30 and you won’t be a master until 40. Why not get a head start?

3. Your Love Life Can Wait.

I understand that people are different, but I think it's foolish to get married too early. Late 20s may work for some couples, but I believe that most marriages would last much longer if the partners were in their 30s. During our 20s, we do a lot of growing. We get to know ourselves much more deeply and begin to understand the kind of person that we could put up with. It’s not about love. Couples are in love when they get married — it’s after they get married that everything falls apart.

Living with another person is not easy. Keeping the love alive, the romance, the excitement becomes very difficult when the other person is always around. It takes a certain level of maturity to make a relationship like marriage work. Date if you wish, but you must remain your priority until your 30s. Otherwise you are risking unnecessary sadness and heartache.

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4. You're Young Enough To Push Your Limits.

In our 20s, we are young enough to push ourselves without risking damaging ourselves in the long run. We can sleep less, put in more hours, survive on caffeine — something that becomes a lot more difficult in your 30s and 40s. You're young and hungry for life; hungry for success. Give it your all now while you still have the energy. Life gets more complicated after the 20s…you may not get another opportunity to give it your all.

5. Become Successful Early, Retire Early.

Success is really a matter of how much you know, how well you perform and for how long you perform at a high enough level. The later you start focusing on yourself — whether it be your career or your health — the more difficult and unlikely it will be that you achieve your goals. Don’t put off your happiness for when you’re 30.

Stop focusing on instant gratification and learn to enjoy delayed gratification. Think about your life in the long run — think about the life you want to be living and not the life that you feel you need to live because of your current situation. Work your ass off now and reap the rewards sooner than others. Why not retire by 40? Who says that you have to work until 70? Chase after your dreams now so that you’re still young enough to enjoy the benefits once you’ve made it.

Top photo courtesy Tumblr/Favim

Why Your 20s Is The Most Important Time To Invest In Yourself (2024)

FAQs

Why Your 20s Is The Most Important Time To Invest In Yourself? ›

If you are overwhelmed, start small. Right now, in your 20s, you have time on your side to create positive financial habits and potentially compounded wealth. Investing in your 20s can increase the likelihood of reaching your financial goals and giving yourself choice and flexibility. Your future self will thank you.

Why you should start saving in your 20s? ›

Don't squander your biggest financial asset: time. Start saving in your 20s and you'll have time for your money to grow. You'll have time to enjoy the fruits of compound interest. You'll have time to weather stock market volatility.

Is 20 a good age to start investing? ›

Your 20s can be a great time to take on investment risk because you have a long time to make up for losses. Focusing on riskier assets, such as stocks, for long-term goals will likely make a lot of sense when you're in a position to start early.

Why is it important for a 25 year old worker to invest money into a retirement plan? ›

The earlier you can start saving for retirement, the better. If you can set aside money when you are 25 years old, you can use the power of compounding for an extra 10 years compared to if you started saving at age 35.

Is 25 too late to start investing? ›

Here's the real truth: It's never too late to start growing your money. And while time does matter when it comes to investing, it doesn't need to matter in the way you might think. You may be surprised at the impact just a few years can have on your savings.

Why investing in your 20s is important? ›

If you are overwhelmed, start small. Right now, in your 20s, you have time on your side to create positive financial habits and potentially compounded wealth. Investing in your 20s can increase the likelihood of reaching your financial goals and giving yourself choice and flexibility. Your future self will thank you.

Why 20s are the most important? ›

The early twenties are a critical phase for several reasons. First, this is a time of abundant energy and zeal, a period when your vitality is at its peak. Additionally, family obligations are typically minimal, offering you more freedom and flexibility.

At what age do most Americans start investing? ›

Beginner investor demographics
AgePercentage of first-time investors
25-3027.0%
31-3625.9%
37-4516.5%
46+10.6%
1 more row
Feb 6, 2023

What is the best age to start saving money? ›

One key short-term goal to plan for is the need for an emergency fund. According to Bankrate, your emergency fund should equal three to six months of bills. CNN Money suggests that you start saving for long-term retirement goals in your 20s, as soon as you leave school.

What is the best age to invest money? ›

If you put off investing in your 20s due to paying off student loans or the fits and starts of establishing your career, your 30s are when you need to start putting money away. You're still young enough to reap the rewards of compound interest, but old enough to be investing 10% to 15% of your income.

What is the $1000 a month rule for retirement? ›

The $1,000-a-month retirement rule says that you should save $240,000 for every $1,000 of monthly income you'll need in retirement. So, if you anticipate a $4,000 monthly budget when you retire, you should save $960,000 ($240,000 * 4).

Can I retire at 45 with $1 million dollars? ›

Achieving retirement before 50 may seem unreachable, but it's entirely doable if you can save $1 million over your career. The keys to making this happen within a little more than two decades are a rigorous budget and a comprehensive retirement plan.

Is $20,000 a good amount of savings? ›

Having $20,000 in a savings account is a good starting point if you want to create a sizable emergency fund. When the occasional rainy day comes along, you'll be financially prepared for it. Of course, $20,000 may only go so far if you find yourself in an extreme situation.

Is investing $100 a month good? ›

On average, the stock market yields between an 8% to 12% annual return. Investing $100 per month, with an average return rate of 10%, will yield $200,000 after 30 years. Due to compound interest, your investment will yield $535,000 after 40 years. These numbers can grow exponentially with an extra $100.

What is the 50 30 20 rule? ›

The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals.

How much money do I need to invest to make $1000 a month? ›

A stock portfolio focused on dividends can generate $1,000 per month or more in perpetual passive income, Mircea Iosif wrote on Medium. “For example, at a 4% dividend yield, you would need a portfolio worth $300,000.

Is it okay to not have savings in your 20s? ›

You're setting up your career, maybe starting a family, and navigating the treacherous waters of adulthood, bills and all. So saving is probably the last thing on your mind. But even if you can only put away a small amount at a time, it's crucial that you start saving now.

What is a good amount to have in savings in your 20s? ›

Financial experts typically recommend saving up three to six months' worth of necessary expenses in order to have a healthy, fully-funded emergency account. So, there's no specific number that a person in their twenties needs to have in their emergency fund — it should be based on their necessary monthly expenses.

Is it normal to struggle financially in your 20s? ›

Most people, even in their mid-to-late 20s are still struggling to establish themselves. That can be hard to do if your job isn't paying you enough, you're struggling to make rent, have no savings, and are being crushed by debt.

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