Unconventional tips for thriving in your 20s

People talk about their 20s like it was a golden era of their lives – full of fun, freedom and boundless opportunities. That’s not how I remember it.

I remember the intimidation of trying to fit into the professional world with no experience, the overwhelming anxiety of trying to keep up with new skills I didn’t understand – super, tax, insurance?

It was more of a rollercoaster than a party. Your 20s can be an exciting but tough time.

School has given you little preparation for the “real world”, and here you are scrambling to learn how to be an “adult” without any structured guidance.

I’ve had the privilege of supporting many people in their 20s achieve some of their big financial goals before they hit 30. This has given me insight into some common challenges and mistakes people often have in their 20s, which can hold them back from making the most of their younger years.

Your 20s can be an exciting but tough time.Credit: Simon Letch

Here are the three things you need to know in your 20s to set yourself up for future success.

Your ‘education’ doesn’t stop with school or university

Many of us have been told that school will help you get a “good” job and, and getting that is the key to creating financial security. That’s it – that’s the recipe.

But it’s not. Once you start working, start paying the bills, start wondering why you can’t seem to keep up with all the expenses, why you can’t afford things your friends can, you start to realise the recipe you were given must be flawed.

This is when many adults realise there’s a skill they were never taught – what to do with the money they earn. This is the real skill you need to create financial security.

The real skills you need to succeed financially (and in life) won’t come from school. You’ll have to make the effort to actively pursue and learn them in your own time.

Embrace choices outside your comfort zone

There can be a lot of pressure in your 20s to “establish” yourself. Get a job, work hard, save up, maybe buy a property or start investing, have fun but not too much.

It can feel like there’s a path that’s already laid out for you, one that you’re expected to follow and will lead to the success you’re supposed to aspire to.

But your 20s are the time you can afford to take the most risk. You don’t have many financial responsibilities. Your living costs are lower than they will be later when you have a family or a mortgage. You have time to recover from mistakes.

That’s why young people are usually advised to invest in more growth-oriented portfolios (which comes with higher risk), than older clients.

This is the time to give things a go.

To be clear, this is not a justification for making whimsical decisions. That’s not taking a risk – that’s just taking a gamble. I’m talking about decisions that might be off the beaten track, but are worth trying because they can open opportunities or lead to something better.

I’m talking about calculated risks that have a potentially big pay-off.

Want a career change? Have dreams of starting a business? Want to move overseas to pursue your dream job? Want to try a “higher-risk” career like being an artist or athlete? Now is the time.

If it doesn’t work out, the set-back is likely to be recoverable. If it does work out, there’s massive potential upside. Either way, you won’t end up living your whole life wondering “what if”.

Don’t just ‘follow the crowd’

In your 20s, straying from the herd can be tough. There’s a strong desire to go along with what your friends are doing and keep up with your peers.

This can lead to decisions that may not reflect your personal values.

You might overspend on fun stuff because that’s what your social circle is into, make career decisions based on what your friends are doing or even feel pressured into bigger financial decisions than you feel ready for (buying a property, getting a car loan).

It takes a lot of courage to stand back and decide to go in a different direction. But when you do, you reduce chances of future regret (because it was your decision, not someone else’s).

The key is to get clear on what’s important to you and what your priorities are. This starts the process of designing your life intentionally, so when you hit 30, you can look at your life without wondering “how on earth did I end up here?”

Paridhi Jain is the founder of SkilledSmart, which helps adults learn to manage, save and invest their money through financial education courses and classes.

• Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.

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