This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
A financial playbook for 20-year-olds
Live below your means. Make it to where your expenses do not exceed your income.
Maintain financial independence. Live with family, friends, and roommates because you want to, not because you have to.
Invest. If you invest $500 a month, you’ll become a millionaire by default in a matter of decades. If you save more, you’ll become a millionaire in less time.
Diversify your investments. Don’t put all your money into the stock market. Try real estate, private equity, cryptocurrency, and other investment ventures.
Don’t open a credit card if you know it will drive up your debt balance. Too many 20-year-olds get their first, second, third, or fourth credit card and rack up tremendous debt that is entirely avoidable.
Stop trying to impress your friends. You don’t need to prove anything to anybody. If you maintain financial savviness, you will be able to buy the things you want more or less. All those things can wait, though; when you can afford to buy them, you might realize you don’t want them anyway.
Focus on the long-term. If you start building your financial portfolio now, you’ll need fewer investment dollars than a 30 or 40-year-old. Mitigate your financial stress by investing and saving for your future self now.
Keep your expenses low. Lifestyle inflation is a common symptom for 20-year-olds. We tend to want to live it up, explore more, and make more financially costly decisions. We also have a tendency (like most Americans) to spend more than we earn if we have access to credit cards and repayment programs.
Rethink your academic experience. Do you need to go to that expensive university, or can you go to x instead for a lot less? Do you need to stay on campus? Do you really need a car? Do you need to be on a meal plan? Do you need to stay in upscale housing? Do you need to stay in school another year? The biggest question you should be asking yourself is: How can I get this schooling paid for in full? Think grants, scholarships (e.g., athletic, academic, etc.), programs, employee education reimbursement, and government or military programs. There are scholarships for women who are 5’10 and taller, which means there’s a quirky scholarship out there for everyone. Find it. Apply. Use it. There is no need to rack up student loan debt for something you can learn in a book.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.