15 ways you should invest your time in your 20s for long-term success (2024)

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Rachel Gillett

2016-06-19T18:03:00Z

Don't waste time, because that's "the stuff life is made of."

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It was good advice when Benjamin Franklin said it, and it's good advice now, no matter your age.

But your 20s are a particularly crucial time in life. Many call these the "formative" years, and the habits you form can carry you through the rest of your life.

So what's the best way to spend this time?

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Flickr/Het Nieuwe Instituut

We sifted through a number of Quora threads and TED talks to find out.

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Work on important life skills.

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There are a number of life skills people need to master, and your 20s is the time to start practicing. Without the pressure of parents or school to motivate you, you'll need to exercise discipline and motivate yourself to learn the essentials.

These skills can range from patience and dealing with rejection to living within your means and good table manners.

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Ask yourself daily questions.

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Benjamin Franklin began and ended each day with a question: "What good shall I do this day?" in the morning, and "What good have I done this day?" in the evening.

In fact, many great thinkers embraced the idea of constantly questioning things.

As Albert Einstein reportedly said, "Learn from yesterday, live for today, hope for tomorrow. The important thing is not to stop questioning."

Of course, getting into the habit of self-reflection is easier said than done, as we often prefer to avoid asking ourselves the tough questions. As philosopher and psychologist John Dewey explained in his 1910 book, "How We Think," reflective thinking involves overcoming our predisposition to accept things at face value and the willingness to endure mental unrest.

But enduring this discomfort is well worth the effort, as it can result in the confidence boost necessary to perform better in our work and daily lives.

Questions to ask yourself could include Steve Jobs' "If today were the last day of my life, would I want to do what I am about to do today?" or Quora user Michael Hopkins' "How are you doing?" and Quora user Soham Banerjee's "Why so serious?"

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Read.

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"There is nothing that will help you more than reading," says Deepak Mehta.

He suggests a wide variety of books, from young-adult fiction and law to Dickens and Tzu, to learn more about contrasting viewpoints. "Do not be afraid of coming across a convincing viewpoint that is totally antithetical to yours," he says.

Reading is also a great way to exercise your mind, says Jereme Allison, because it activates almost all areas of it. "The mind is a muscle. If you don't use it, you lose it," he says.

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Take preventative measures to stay healthy.

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Francesco Wang refers to this as "life-extending" time.

"Investing time in caring for your health ... will certainly yield you more time, literally — in days, months, if not years tacked on to your life," he writes. "Yet we often take our health for granted until we experience a wake-up call."

Instead, he suggests proactively investing your time in your health by eating well, exercising regularly, getting plenty of sleep, regularly seeing your doctors, and taking care of your emotional, mental, and spiritual health.

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Build in cushion time to get where you're going.

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Wang cites the "Good Samaritan" study from Princeton University in 1973, which found that whether a person was in a hurry had a huge effect on if they'd stop to help an injured person. Only 10% of those in a hurry stopped to help an injured person, 45% of those in somewhat of a hurry stopped, and 63% of those not rushed at all stopped.

"This means that being in a rush may be preventing you from being the kind of person you want to be — the kind to stop and help someone in need," Wang says. "Building in lots of cushion time in your schedule and preventing 'constant hurriedness syndrome' is a great investment in yourself and in the quality of life of those around you."

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Do something social and outside your comfort zone.

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Whether you join a book club or head to the pub for karaoke or trivia night, Mehta says it's important to meet more people outside your friend circle and try to rid yourself of some of your social anxiety. It's important in your 20s to become more comfortable around others.

"I know after college one's social group often changes, so joining organizations helps one expand their circle of friends," Hunter McCord writes.

Growing your circle of loved ones and spending time with them is not something you will regret, he says. "I never heard of anyone at the end of their life wishing they spent less time with loved ones."

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Learn a new hobby.

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Rachel Gillett/Business Insider

As the stresses of daily life become more burdensome in your 20s, it's important not to forget about taking care of your mental health.

Mehta suggests starting a mentally stimulating hobby like playing chess, role-playing games, or solving puzzles to keep your mind sharp. Hobbies can also be a good creative outlet or an exercise in relaxation.

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Spend time by yourself.

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Garv Suri recommends spending half an hour every day alone to get to know yourself better.

Tonya Turpin says that actively becoming aware of what's going on inside your head is the only way to truly understand yourself.

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Get involved in meaningful causes.

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"You will never have this much energy, health this great, or this much disposable time again in your life," writes Heidi McDonald. "Make the most of it. This is your best chance to make a difference in the world."

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Start saving for the future.

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The beauty of saving for your retirement in your 20s lies in compound interest, Allison says. Even if you open a retirement account today and put in $5 a month, "the effects of compound interest on that extra decade or two can literally mean the difference of hundreds of thousands of dollars more that you will have for your retirement."

Similarly, Tanmoy Roy suggests having fun but living frugally and allocating some money to pay off your debt on a monthly basis. You may not be saving for a home just yet, but down the road your student loans could prevent home ownership.

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Be better informed.

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Flickr/Laura D'Alessandro

To find a meaningful cause, McDonald suggests keeping up with the latest current events by following the news.

"Chances are, you'll find your passion, whether that's a cause you're interested in or a niche you believe you can fill," she says.

Sanjay Kadel advises being wary about where you get your information. "Don't believe in whatever is there on the internet," he writes. "Do some research and then conclude whether it should be registered or eradicated."

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Fail.

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Ina Fassbender/Reuters

"Fail," advises Arpit Sethi. "Out of our teens, this is the best thing that can contribute in the making of an adult. The more we fail, the more we learn."

You'll never have more energy or ability to think than when you're in your 20s, says Shulamit Widawsky, and you'll never be more vulnerable. This is the time to push your limits and recover from the failures that are inevitable when you take risks.

"Knowing what you can do and what you can recover from will make the whole rest of your life more successful," she says.

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Review your week.

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Flickr user Nicole April

"One great habit is a weekly review to look back at the past week and lay out the one coming up," says Curt Beavers.

He advises pondering:

1. What went well last week? (Celebrate and continue these.)

2. What didn't go well? (Stop, overcome, or remove these from your plate.)

3. Based on the answers above, what changes do I need to make to make this week better?

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Travel.

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It doesn't matter how much you travel in your 20s, says Shrey Garg, but rather how you travel.

"Don't be a tourist, but a traveler. This will help increase your vision and make you realize how big and small the world is at the same time," he says.

The key, according to Allison, is experiencing new things: "Get to know that there is a bigger world out there. Learn about other cultures. Try new foods. You will be surprised at what you discover."

Mario Hari suggests traveling with complete strangers. "Experience the motley mindset of people. And if you study their emotions carefully, you will get an intuition about what every soul is searching for," he writes.

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Whatever you do, mix it up.

"People aspire to live a memorable life, and there's this tragic reality that most of us don't," Dustin Garis said last year during his TEDx talk.

For two years Garis traveled around the world, and on his journey he says he learned that "life is not the number of days you live; it's the number of days you remember."

The key to living a memorable life, he says, is pursuing one through breaking out of routine, incorporating change every day, and the "epic and everyday acts to save the day from being lost."

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15 ways you should invest your time in your 20s for long-term success (2024)

FAQs

How to invest your time in 20s? ›

Start saving and investing in your 20s by contributing to a retirement plan, investing in index funds and ETFs, automating your investment management with a robo-advisor and increasing your savings rate over time.

What should a 20 year old invest in? ›

Investment options for beginners
  • ETFs and mutual funds. These funds allow investors to purchase a basket of securities at a fairly low cost. ...
  • Stocks. For your long-term goals, stocks are considered one of the best investment options. ...
  • Fixed income.
Jan 31, 2024

How should I spend my time in my 20s? ›

20 Things to Do in Your 20s
  1. Make a plan—but be willing to change. Setting goals is great. ...
  2. Make a budget and stick to it. ...
  3. Learn how to set boundaries. ...
  4. Take care of your mental health. ...
  5. Save up an emergency fund. ...
  6. Embrace the season you're in. ...
  7. Pay off all debt (especially student loans). ...
  8. Get out of your parents' house.
Jan 30, 2024

What should you be doing in your 20s? ›

Five Things to Do in Your Twenties
  • Be Curious. No matter where you are in life, expanding your mindset and exploring your interests is important. ...
  • Find Lifelong Friends. ...
  • Kickstart Your Career. ...
  • Give Back. ...
  • Make a Plan and Keep Your Budget in Mind.
Jul 14, 2023

What to invest in at 25? ›

Consider putting as much of your savings as possible in some form of equities, such as common stocks and stock mutual funds⁠. You might also consider real estate, either in the form of a personal residence or a REIT (real estate investment trust), a mutual fund that invests in real estate holdings.

What should a 22 year old invest in? ›

But the more you learn about investing and think about your goals, the more confident you'll become as an investor.
  • 6 ways to invest in your 20s. ...
  • Invest in the S&P 500. ...
  • Invest in REITs. ...
  • Find a robo-advisor. ...
  • Buy fractional shares of stocks or ETFs. ...
  • Buy a home. ...
  • Open a retirement plan.

What should a 20 year old have in savings? ›

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.

What is the rule of 21 in investing? ›

The theory is that if the PE ratio plus inflation is less than 21, then the market still represents value, whereas if this value exceeds 21, the market is becoming expensive.

How to invest at 19? ›

Here are seven ways for college students to get started in investing, from the super-safe to the bold.
  1. Consider starting with a high-yield savings account or CDs. ...
  2. Turn to a free or low-cost broker. ...
  3. Invest a little each month. ...
  4. Buy an S&P 500 index fund. ...
  5. Sign up for a robo-advisor. ...
  6. Turn to an investing app. ...
  7. Open an IRA.
Apr 29, 2024

Why your 20s are the best time of your life? ›

Your 20s are the freest years you will ever have. You are in shape, you have all the energy to be healthy if you're not, you can still do a lot of things, you have time and dreams still preventing you from having a good night's sleep.

How do I navigate my life in my 20s? ›

Making thoughtful decisions is crucial during your twenties. It is essential to take the time to consider your options and make decisions that align with your goals and values. It is okay to make mistakes and experience failure, but it is crucial to learn from them and use them as opportunities for growth.

Should I save or spend in my 20s? ›

When you're in your 20s, time may be your most valuable asset. Consider saving 10% to 15% of your pre-tax income for retirement, but even if you only have a smaller amount to invest each month, it may still be worth it. Time in the market is key. Get started as soon as you can.

Why are your 20s so 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.

What does early 20s mean? ›

A person currently in their "early" twenties, speaking about the even earlier years (eg they are 23 and speaking about when they were 21). A person who has already spoken about some part of their twenties, and then is proceeding to talk about an even earlier stage.

Can you grow in your 20s? ›

Although most adults won't grow taller after age 18 to 20, there are exceptions to this rule. First, the closure of the growth plates may be delayed in some individuals (36, 37). If the growth plates remain open past age 18 to 20, which is uncommon, height could continue to increase. Second, some suffer from gigantism.

How do you build wealth in your 20s? ›

  1. Your 20s are about establishing a foundation as you gain financial independence.
  2. Set a budget that balances your needs, wants and wishes.
  3. Create a plan to pay off debt and stick to it.
  4. Begin building your credit.
  5. Start an emergency fund of up to three months of living expenses.
Mar 8, 2024

How can I grow wealth in my early 20s? ›

Here's what they said.
  1. Yes, You Do Need a Budget. When you're in your 20s, you might just be starting your career. ...
  2. Invest in Yourself. ...
  3. Start a Business. ...
  4. Invest in Real Estate. ...
  5. Invest in the Stock Market. ...
  6. Pursue a High-Paying Career. ...
  7. Increase Your Savings Rate. ...
  8. Bottom Line.
Nov 6, 2023

Is 25 too late to start investing? ›

You're never too young to invest. Yes, investing can seem intimidating, and yes, there are experts out there who seem to speak a whole different language, but not everyone needs to make a career out of it.

How much should you invest in your 20s? ›

To make the process less intimidating, start small when saving for retirement and slowly increase your savings rate over time. For instance, you could save 5% of your income now but increase that rate to 10% over the next two years. Regardless of how much money you start with, any amount is better than none.

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