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So, you want to get rich in your 20s?
You want a life of financial freedom, endless opportunities and the exhilarating thrill of turning your dreams into reality, all before you hit 30?
While some people might say this is nothing but a fantasy, I’m here to tell you that the path to amassing riches in your 20s is not only real but also way more achievable than you may think!
Picture your life like this…
You have no debt, a comfortable amount of savings at the ready for emergencies, money to travel and visit restaurants whenever you want.
Building wealth in your 20s doesn’t mean you need to sacrifice fun and live a dull life. Nobody wants that!
It’s all about being smart with your decisions, getting your priorities in check, saving, mindset and making money in your 20s.
There are plenty of people who have built a fortune from nothing. It happens!
How To Get Rich in Your 20s
Buckle up now as you learn how to make strategic financial decisions, unconventional thinking and the best kept secrets that could fling you toward a future of wealth. If you’ve been wondering how to break free from the chains of financial constraint and embrace a world where the term ‘early retirement’ isn’t just a dream, then you’re in for a real treat.
Get ready, because the secrets to getting rich in your 20s are about to be revealed – and you can’t afford to miss out on them!
PIN THIS: This post is lengthy because I wanted to pack as much useful information as possible to help you get rich in your 20s and 30s. Make sure to PIN THIS and bookmark the page so you can always come back and find the latest tips and secrets on how to get rich in your 20s.
1. Set Clear Financial Goals
This often gets overlooked. A lot of people don’t think to set clear and concise financial goals. It can be way too easy to work, get paid, spend paycheck, repeat.
Can you relate??
But when you’re looking to build wealth in your 20s, you want a clear roadmap of what you want to achieve and when. This will make things a lot easier along the way and keep you on track.
So, start with your short-term and long-term goals. Your short-term goals might be things like building an emergency fund, paying off student loans or saving for a house down payment.
Now write down your long-term goals. These could be achieving a specific net worth, retiring early or funding your dream business. Next, use the SMART method (Specific, Measurable, Achievable, Relevant and Time-bound).
For instance, if you aim to save for a down payment on a house, specify the exact amount you need, the timeframe you aim to achieve it in and whether it’s realistically feasible with your income and expenses. Regularly assess your progress and adjust your goals as circumstances change.
I find that prioritizing my goals helps me to avoid becoming overwhelmed. I determine which goals are most important to me and align with my values. Then, you can allocate your resources – time, money and effort – accordingly. Budgeting is super important here! Track your income and expenses to make sure you’re consistently allocating funds toward your goals.
Finally, visualize success and stay motivated. It helps to break your goals into smaller milestones. Celebrate each achievement, no matter how small, to keep up enthusiasm. Keep refining your goals as you go.
2. Invest in Yourself
Invest in yourself now and your future self will LOVE you for it. Your 20s is the perfect time to turn yourself into a powerhouse of skills and knowledge.
First things first, figure out what makes you tick. What are you passionate about? What do you want to absolutely slay at? Take courses, join workshops and dive into online tutorials. You’ll learn new tricks and boost your value in the job market. And of course more skills often means more moolah.
You can also keep that brain of yours active by reading books, blogs and listening to podcasts. This will keep you in the loop about what’s happening in your field and beyond. Also, networking – not just for corporate types. Go to events, virtual or not, and mingle. You might meet someone who knows someone, and boom, a door opens.
Don’t forget about being your own life coach too. Work on those ‘soft skills’ like dealing with stress, managing time and being a good communicator. A healthy mind and body are your secret weapons, so exercise, meditate and sleep well – you know the drill.
Lastly, switch on that growth mindset. Failures aren’t roadblocks, they’re stepping stones. Embrace challenges, learn from them and keep pushing. You’re not just investing in money here, you’re crafting a richer, more awesome you 🙂
3. Live Below Your Means
You don’t need me to tell you how easy it is to spend money without thinking twice. You just tap and go right?
With social media and influencers around every corner it can feel like you have to keep up with the latest trends and spend money on things you more than likely don’t need.
The problem with constant spending is it’s going to set you back and won’t help you to get rich in your 20s (or even your 30s).
So, if you want to become rich in your 20s, you’ll need to start building some savings and get your spending under control.
Let’s say you earn a yearly salary of $80,000. Say you’re spending even more than that on the things you like, and maybe the things you don’t like but are necessary…and living beyond your means.
Now, let’s flip the script. Imagine you’re on a $50,000 yearly salary, but you’re spending like a champ, sticking to a budget, and actually saving around 20% of your paycheck. That’s $10,000 right there, finding its sweet spot in your savings account.
So you see it’s not necessarily about the size of your salary, it’s about the moves you make. Living within your means might not be the flashy route, but you’re building a solid foundation for your future self.
4. Start Investing Early
Now let’s talk about investing in your 20s – yep, the magic of turning a bit of money into a whole lot more. Like planting a tiny seed that grows into a money tree.
So here’s the deal: start early. Even if it’s just a smidge of your paycheck, it’s like planting that seed and giving it time to sprout. The beauty is in something called compound interest. Basically, the money you invest earns more money, and then that money earns even more money. It’s like a money party that keeps getting bigger!
I’ll break it down with a simple example. Say you’re setting aside $100 a month starting at age 22. By the time you hit 30, you’ve put away $9,600. But wait for it – with compound interest in the mix, you might have around $12,000. Now, if you keep this up, by the time you’re 60, you could be looking at a cozy $150,000 or more. All from that initial seed you planted. Pretty awesome right?
And you don’t need to be a Wall Street whiz either. You can start small with low-cost investments like index funds or retirement accounts. The key is consistency – keep nurturing that money tree and watch it grow while you focus on living your life. You’ll slowly but surely be moving closer to early retirement year by year.
5. Diversify Your Investments
While we’re on the topic of investing, I want to quickly talk about diversifying your investments.
Think of it like not putting all your eggs in one basket, but instead having a bunch of baskets with different kinds of eggs.
When you diversify, you’re spreading your investments across different things – stocks, bonds, real estate, maybe even that start-up that’s the next big thing. But imagine if you invested everything in just one company’s stock. If that company takes a tumble, your wallet can feel it, big time!
But when you diversify, if one thing isn’t doing so well, the other things might be picking up the slack. Kind of like having a team of investments that have each other’s backs. It’s a smart way to manage risk. You’re not putting all your hopes on one star – you’re playing it smart and safe.
So, whether you’re into finance or just dipping your toes, remember this: diversifying is like creating a financial safety net. It’s not about being a money genius, it’s about being strategic and not putting all your money in one place.
So mix it up and let your investments party together while you watch your wealth grow!
6. Use Clever Money Hacks
While you’re focusing on saving and investing, you can also find smart ways to get your hands on some free money, both online and offline.
Throughout my 20s I found real and clever ways to earn some extra money on the side with very little effort. I took surveys, flipped furniture, sold my old stuff, participated in market research groups and downloaded apps that pay you real money.
These days there are so many side hustles on offer and simple ways to boost your income on the side. Whether you use a cash-back app like Fetch Rewards or take surveys and earn points to cash out with a company like Swagbucks, these are ways to save some money and have some fun while doing it.
And don’t forget about other ways you can basically get free money. Like taking advantage of a 401K retirement plan, refinancing your student loan debt and getting cash bonuses when you open a new account. Read more about getting free money right here.
7. Be Mindful with Spending
Okay now it’s time to level up your financial game by being super mindful of your spending. This means you’re taking control over your money and not falling into the trap of overspending.
When you’re mindful of your spending, you’re not just swiping your card and forgetting about it. You’re asking yourself, “Is this worth it?” Do you really need that fifth takeout coffee this week, or could that cash be better spent on something that aligns with your goals?
Being mindful doesn’t mean being stingy or saying no to the fun things. It means making intentional choices that match up with what truly matters to you. Maybe it’s saving up for an awesome trip, paying off student loans or investing in your side hustle. When you’re mindful, you’re putting your money where it has the most impact.
So, next time you’re about to make a purchase, ask yourself, “Is this moving me closer to my goals?” If the answer is yes, go for it with gusto. If not, maybe give it a second thought.
Let’s be mindful spenders and watch our wealth grow, one intentional choice at a time!
8. Pay off Your Debts
One of the best things you can do is get rid of any consumer debt you have hanging over your head.
When interest rates are skyrocketing and those monthly repayments are getting bigger, it’s a good idea to knock debt on its head once and for all. And there are a couple of ways you might want to do this.
The first is using the debt snowball method, where you start paying off your smallest debt amount first, regardless of interest rate. Once that’s paid off, move onto the second smallest debt amount, all while paying the minimum repayment amounts on your other debts. You continue to do this with all your amounts from smallest to largest.
The second method is the debt avalanche method. This is where you make the minimum repayments on all your debts and put any extra money towards the debt with the highest interest rate. This can result in paying less interest over time.
I personally prefer using the debt snowball method, but everyone is different and can choose how to pay off their debt according to their own circumstances.
Following Dave Ramsey’s debt repayment methods has helped us to pay off debt in the past. If you’re interested in learning more about it you can read this article here.
9. Don’t Impulse Buy
Now let’s talk about impulse buying. You know what happens – you’re strolling through a store or browsing online, and suddenly bam! You’ve bought something you didn’t really need or even want that much. It’s like money is just slipping through your fingers, and trust me, it happens to even the best of us.
The bad news is that those impulse purchases can add up like crazy. That trendy gadget or that extra pair of shoes might feel awesome in the moment, but it’s like tiny bites out of your wallet that could be better spent elsewhere. If you really think about it, that money could go towards your emergency fund, debt repayments or investing for your future self.
So, here’s a trick – next time you feel the urge to splurge, pause. Take a breath. Ask yourself, “Do I really need this?” Give it a week or two, and if you still really, truly want it, go for it. But more often than not, you’ll find that the impulse fades away and you get to keep your cash for something more fruitful.
And it’s not about never treating yourself either, it’s about treating yourself thoughtfully. Your hard-earned money deserves to be spent on things that truly matter to you.
Related post: How To Stop Spending Money and Control The Urge
10. Start Saving For Retirement
Think you’re too young to start saving for retirement? I’m here to tell you that you can never start too early!
Your 20s is the perfect time to start thinking about retirement savings. And if your employer offers a 401k retirement savings plan, this is definitely something to consider.
If you can get yourself into the habit of putting savings away, no matter how small, for retirement, you’re already a step ahead. It might take some getting used to but the sooner you adopt good savings habits the better!
11. Generate More Income Streams
Okay, after sharing with you some ways you can save and be clever with your money. Now I want to talk about making more money and building wealth.
There are limits to how much money you can save. But the awesome news is that the sky is the only limit to how much money you can make.
Start now, in your 20s, maybe with a side hustle or a weekend job. There are so many different things you can do, from money making hobbies to freelance writing to pet sitting to food delivery. Find something you enjoy and you can easily make an extra few hundred to thousands of dollars a month.
Here are some posts you can check out on making extra money:
— How To Start A Profitable Blog in 2023 – Step-By-Step
— 9 BEST Apps That Pay You Cash in 2023!
— How To Make Money as a Freelance Writer
— Best Delivery Apps To Make Money in 2023!
— 17 Fun Hobbies That Make Money Now
— 9 Mystery Shopper Jobs To Make Money!
12. Health is Wealth
This might sound like mom’s advice, but seriously, looking after your health to build wealth is important.
When you’re healthy, you’re sharper, more focused and able to tackle challenges like a pro. And guess what? That can directly impact your career or side hustle.
When I’m not feeling great, it’s almost always because I haven’t been eating well, have neglected exercise and gotten into an unhealthy pattern. I find it harder to concentrate and stay motivated with my blog and other projects when I’m feeling like this. And to be honest it really is the pits!
So, I increase my water intake, make sure I get some vitamin D, do 20-30mins of exercise every day and pay attention to what I’m eating. This way I sleep better, work better and feel happier in general. I can function properly and get more done in the day when I look after myself.
13. Keep a Long-Term Vision
I know that thinking decades ahead might sound a bit much, but trust me, when it comes to building wealth it’s a good habit to start thinking long-term.
Say you’re in your 20s and you decide to start saving and investing for something that’s not happening next week, month or even next year. It could be buying a house, early retirement or traveling the world. When you keep your eyes on the long game, you’re likely to make smarter money moves and set yourself up for your future success.
Having a long-term vision helps you steer clear of impulsive decisions that might give you a quick thrill but leave your wallet crying in the corner, like I talked about earlier.
And the good news is, time is on your side! The earlier you start, the more your money can grow. So my friend, while it’s important to enjoy the present, keep your future self in mind too. They’re going to high-five you for the smart moves you’re making today.
14. Network Effect
Let’s talk about the power of networking! I know it might sound a little corporate-like, but when you focus on building connections they can light up your financial future.
When you network, you’re not just swapping business cards; you’re trading stories, ideas, and opportunities. You’re expanding your universe of possibilities. You never know when you might meet someone who’s on the same wavelength or can introduce you to an amazing opportunity that aligns with your goals.
Networking isn’t about being all corporate and serious in boardrooms. You can do it over coffee, at a meetup or even virtually. It’s about connecting with people who share your interests or passions. They might have insights you’ve never thought of or might even be on the lookout for someone just like you to collaborate with.
Facebook groups can be a great way to connect with like-minded people. And if you work online, you can connect with just about anyone through their website or social media.
15. Read, Read, Read!
You know the quote “Rich people constantly learn and grow. Poor people think they already know.”?
It’s one of my favorites because I remember feeling stuck in a rut when I was in a job that I hated, figuring well this was my life and I just had to deal with it, at least it was paying the bills and I shouldn’t complain…
But once I actually started reading the right books for success, blogs, researching not-so-traditional ways of earning an income online and offline, it made me thirsty for more! I started learning, growing, getting creative, starting this blog, learning how to manage my personal finances and so much more. I realized that you can never stop learning, no matter what your age is! And that you shouldn’t stop learning and growing. It’s the ultimate road to success in my humble opinion.
So get reading, whether it’s for personal growth, building wealth, learning something new or trying something different. Read as much as you can and as often as you can about all different things to keep that mind active and learning.
You might also like to read: 9 Ways To Develop a Millionaire Mindset (#7 is Very Important!)
16. Continue Learning
They say knowledge is power, and I tend to agree!
And in this case, it’s also money.
While learning new skills can make you a very decent income, imagine landing a gig that pays more just because you know how to code or rock that marketing strategy.
Plus, it’s not just about the job. If you’ve got entrepreneurial dreams, learning the ropes of running a business is like having your own money making machine. You’re setting yourself up for success from the get go.
So whether you’re hitting the books, taking online courses, or having deep conversations with experts, know this: every bit of knowledge you gain is like a step closer to financial greatness. Your 20s are the prime time for soaking up wisdom, and trust me, it’s an investment that’s bound to pay off big time down the road.
17. Real Estate
They say real estate is like the classic path to wealth, and I’ll tell you why.
First off, you don’t need to be a real estate tycoon right away. You can start small. Think about investing in a duplex or a small apartment you can rent out. This not only covers your mortgage but might even leave some extra cash in your pocket. It’s like having your tenant pay your way to wealth.
And of course, real estate often appreciates over time. So, that small apartment you buy in your 20s might double or triple in value by the time you hit your 40s. Like money growing on trees! Plus, you can use rental income to invest in more properties, creating a snowball effect of wealth.
Now, it’s not all sunshine and rainbows. Real estate can be a rollercoaster ride, with its fair share of risks and challenges. But if you’re willing to put in the work and do your research while learning the ropes, it can be a game changer for building wealth in your 20s.
18. Rich Mindset
Research has shown that wealthy people become rich by taking calculated risks.
Remember in my post (9 Ways To Develop a Millionaire Mindset) where I talked about Steve Siebold’s book “How Rich People Think”, and how he says that “Thinking big is normal for rich people. The masses think small. The secret is to think big and act on your dreams while everyone else waits for a miracle to happen.”
It’s so true, when you start thinking differently to the masses and finding opportunities where others don’t, things start to shift.
Embracing discomfort hinges on your mindset and thought process. Wealthy individuals often perceive challenging situations as chances for growth, while most others instinctively regard them as potential failures or losses.
As a result, people who don’t have a growth mindset tend to give up too quickly or don’t even bother to put any effort in.
While nothing is guaranteed in life, if you want to get rich in your 20s, you need to start believing you can and will be able to do it. Once you shift your mindset, your behaviour and actions change, giving yourself a good chance at success.
I know that changing your mindset can be easier said than done. Especially if you’ve been trapped in the same mindset that came from your family or schooling life that has stuck with the one view with no room for change.
But if you want to build real wealth in your 20s, 30s or even your 40s, start getting into that rich mindset now!
After close to thirty years of research and interviews with wealthy people, Steve Siebold offers valuable insights into this shift in mindset that I think can really help.
19. Learn From Successful People
Now, here is a fantastic strategy for building wealth in your 20s: learning from the pros!
Imagine you’ve got access to the knowledge, experiences and life lessons of people who’ve already made it big. Whether it’s through books, podcasts, blogs, seminars or mentorship, tapping into their wisdom can set you on the right path with your journey to getting rich.
These successful people have walked the path, made the mistakes and already hit the jackpot. So they’ve got insights and strategies that can help you avoid pitfalls and make smarter decisions. And, their stories can be really motivating!
Remember, learning from successful people doesn’t mean copying them entirely. It’s about cherry picking the lessons and techniques that align with your goals and personality.
When you learn from the best, you get a shortcut to financial glory.
20. Take Risks
I’ve mentioned taking risks a lot throughout my blog. To me it’s the best way for you to move forward and get to where you want to be.
Before I continue I want to say that I completely get it if you feel scared to take risks, there’s nothing wrong with that! I felt the same way and still do at times now, but with some practice I’m a lot better at it now than I was.
You know what’s pretty common? People who dream of big wins without breaking a sweat or taking any chances. I mean, who doesn’t want those high returns without breaking a sweat, right? But here’s the deal: big rewards usually come with some risk tags attached.
Now, when it comes to taking risks, the sooner you jump in, especially in your wild 20s, the better you’ll handle the rollercoaster. Think of it like investing in those growth stocks – the younger you are, the more you can ride out the ups and downs.
I keep preaching this because I don’t want you looking back later in life and thinking, “Darn, I should’ve taken more shots.” But hey, don’t get me wrong, it’s not about going ALL IN without a plan. It’s more like smart risks, with a dash of calculated thinking. Ask yourself “what’s the worst that can happen?”
21. Stay Adaptable
Getting rich in your 20s while staying adaptable is all about seizing opportunities and being flexible in this ever-changing world.
So, like I discussed at no. 2 and investing in yourself, start by building a versatile skill set. Learn things like digital marketing, coding or even data analysis – skills that are always in demand. This flexibility will help you to pivot when needed and explore various income streams.
Next, it’s taking those calculated risks. Learning something new and out of your comfort zone, investing and looking at real estate. These avenues can yield significant returns if you’re open to adapting your strategies as market conditions change. And remember, it’s okay to fail along the way! Setbacks are a super valuable learning experience.
Networking is key too, like we discussed at no. 14. Build connections with people from diverse backgrounds, attend industry events and leverage social media. These relationships can seriously lead to lucrative opportunities and valuable insights. Always stay curious and informed about emerging trends because this knowledge will help you spot those opportunities that others might miss.
In a nutshell, your 20s are a prime time to amass wealth through adaptability. Stay open to change, keep learning and be willing to pivot – the path to riches is often an ever-evolving one!
Your Turn
Now that you’ve read all about how to get rich in your 20s, are you ready to turn thought into action? Do you have any tips on building wealth in your 20s, 30s, 40s or even 50s?
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