How to Build Wealth in Your 20s: Starting Now!

20 Best Ways For Building Wealth In Your 20s

Today I want to review 20 tips about how to build wealth in your 20s. Because getting an early start is the key to having financial freedom at a young age.

So, pull up a comfortable chair. And let’s talk about personal finance.

Specifically, money in your 20s. Making money, saving money, and investing money. To start building wealth at a young age.

Now you know the topic. So, no further delays.

Because it is all about how to build wealth in your 20s. And doing it in all the right ways!

build wealth in your 20s

Disclosure: At no cost to you, I may get commissions for purchases made through links in this post.

20 Tips About How To Build Wealth In Your 20s

Here’s my list of top ways to build wealth in your 20s:

  1. Hustle & use your natural energy
  2. Focus on increasing your income
  3. Create multiple income streams
  4. Be open to new opportunities
  5. Follow the money, not your passion
  6. Don’t be afraid to change employers
  7. Learn more and develop marketable skills
  8. Live below your means
  9. Develop a money mindset
  10. Hang with money-minded friends
  11. Spend only on what you value
  12. Make and follow a budget
  13. Create an emergency fund
  14. Pay down debt
  15. Invest in your 401k
  16. Open and fund an IRA
  17. Invest in taxable accounts
  18. Stick with stock investments
  19. Consider real estate investments
  20. Make a wealth-building plan & stick to it

That’s the outline for today’s discussion. You may be starting this wealth-building journey from nothing.

But, that’s okay. We all get our start from that same spot.

So, let’s jump right in. Beginning with how to make money in your 20s…

steps for building wealth in your 20s
Making money in your 20s

1. Hustle And Use Your Natural Energy

I’ve always been a big believer in playing to one’s strengths. And one of your biggest strengths in your 20s is the energy of youth.

So, don’t waste it. Use your hustle and energy to pursue skills, knowledge, and good luck with money.

In addition, most 20-year-olds haven’t started a family yet. So the combination of energy and less responsibility in life. Means you have an advantage.

Unlike your older counterparts, you don’t yet have knowledge. That comes from years of experience.

But, it’s okay. You have time and energy to burn.

Here are some good ways to use that energy productively. If you want to know how to grow wealth in your 20s…

2. Focus On Increasing Your Income

First, in your job or career. Determine what you are good at. And be great at it.

Use your energy to put in extra hours. Take advantage of every opportunity your employer throws at you.

The more you can do. And the better you are at what you do. The more money you can earn. Both now. And, in the future.

Then it becomes easier to ask for a raise. And more importantly, get it! Setting yourself up well financially heading into your 30s.

Next, it’s time for point number 3 about how to accumulate wealth in your 20s…

3. Create Multiple Income Streams

Next, start looking for ways to create multiple income streams. You should know that income is generated in 2 ways.

First, there is income from activities. This is where you trade your time and expertise for money.

First, focus on your primary job.

Then think about starting a side hustle. A side business. Or, taking on part-time work.

Determine if you have any unique skills or experience. That can earn you some extra cash.

Were you a math guru in school? Then look for students to tutor.

Did you do landscaping work in college? Your local park district may have weekend work in the summer.

Do you like easy money? Then take online consumer surveys for cash.

Second, there is income from assets. This is where you invest money or time upfront. And earn a passive income stream from it.

More on the best assets to buy in your 20s in a moment. For now, let’s stick with making money from activities.

Because making more money is the best way for accumulating wealth in your 20s…

4. Be Open To New Opportunities

Yours 20s is not the time to limit your thinking.  Or, narrowly define yourself. So, get in the money habit of thinking big.

Because your life, your wealth, and your prospects for making money. Are only limited by your thoughts.

Do you have a money-making idea? Then pursue it when you are away from your day job.

Have friends taking on roles at new employers. Don’t be jealous. Ask them what, why, and how.

Be open to their way of thinking. Because what they are doing may suit you too.

Have a superior you admire? Ask them how they got to where they are today. Learn from their experiences.

This next point is critical. When it comes to growing wealth in your 20s…

5. Follow The Money, Not Your Passion

Now, I hate to say this. Because it is tough love.

The people that follow their passion into the arts or social work. Well, they struggle to build financial wealth in life.

Not that there is anything wrong with those pursuits. They are noble. And it’s great to follow one’s passions.

Have you heard this expression?  “Find something you love to do and never work a day in your life.”

It’s awesome if you can pull it off. But most people like you and me can’t.

So, I have a suggestion. Change your thinking.

Because, if you want to build wealth in your 20s. I suggest you follow the money. And make that your passion.

Doing so will bring financial freedom. At a much younger age. And that’s something to be passionate about.

So remember, be passionate about money, skills, and knowledge. That’s how to make a lot of money in your 20s.

And benefit from financial abundance. That our world has to offer.

6. Don’t Be Afraid To Change Employers

You may be in your first job. But, don’t be afraid of changing employers. Furthermore, be aggressive at finding your next job.

Now, I don’t mean changing jobs every 6 months. That wouldn’t look good on your resume.

I mean changing employers every 2-3 years in your 20s. Why?

Because you will learn more. And avoid complacency.

And if you do it right. Make more money each time you change jobs.

It’s a win, win, win. Because in your 20s, it’s time for some calculated risks. To advance your career more rapidly.

So be sure to get your resume in top shape. For when that next opportunity knocks.

This builds upon my next point for amassing wealth in your 20s…

7. Learn More And Develop Marketable Skills

Are you catching on to the theme here? Learn, learn, learn. And invest in yourself to build out your skill-set.

As quickly as you can, turn the tables on your older counterparts. They have the knowledge that comes from experience.

But you have the energy and hustle. To learn more. And learn faster. To gain new skills.

So, look for ways to accelerate the pace of your learning efforts. And remember to follow the money. By building marketable skills.

Are you ready for the next group of tips about how to build wealth in your 20s? They focus on how to save money in your 20s.

gain wealth in your 20s
Saving money in your 20s

8. Live Below Your Means

Brace yourself. Because your 20s are a tough time for spending money.

It’s an age of unlimited wants. And, limited resources.

You must, must, must. Live below your means. It is critical for creating wealth in your 20s.

So, remember to spend less than you make. And pay yourself first. Tucking the extra money away from where you may be tempted to spend it.

9. Develop A Money Mindset

Do you know what you and I are? Let me give you a hint.

We are exactly who we think we are.

As a result, I want you to think that you are good with money. And have a healthy respect for money. Think this way and the good fortune of wealth will find you.

This mindset is especially important when it comes to spending money.

So, when you are ready to make that next purchase. Hold off a week. And see if the desire is still there.

Remember that every unnecessary dollar you spend now. Represents a trade-off with your future financial independence.

10. Hang Out With Money-Minded Friends

choose friends wisely to grow capital

I repeat the question from the last section again. Do you know what you and I are? Hint…

You and I are, who our friends are.

Thus, find friends that value their time. Friends that work hard, follow the money and live within their means.

Then you will become more like them. Further enhancing your money mindset. To increase wealth in your 20s.

11. Spend Only On What You Value

This is a tough wealth-building concept when you are in your 20s. At least, in my opinion.

On the other hand, it is one of my favorite money affirmations. For wealth and prosperity.

Because most of us in our 20s do not know exactly who we are. And what we value.

Furthermore, what we value changes over time. So, do a little deep thinking on this topic.

What do you deeply value in life? To the best of your ability, determine what that is.

Then spend money only on what you value. And cut out the spending on everything else.

Spending only on what you value. Is one of the best ways to save money in your 20s.

So is earning cash rebates. On all your online purchases. They are like free money in your pocket.

Next up, an important point in your quest to learn how to gain wealth in your 20s…

12. Make And Follow A Budget

Have you figured something interesting out by now? About today’s article?

In my opinion, it provides a big picture view. Because that perspective drives how you start building wealth in your 20s.

But this more tactical point still deserves a mention…

Specifically, develop a monthly budget. That is based on spending less than you make. Then stick to it.

Look at the expense lines on your budget. And be aggressive at reducing costs. However, you can.

If groceries are a big cost. Use an app like Ibotta to earn cashback. To save more money.

Okay. That concludes the tips on saving money.

It’s time for our final section of wealth-building ideas. In today’s article on 20 tips about how to build wealth in your 20s.

So, this last section focuses on how to invest money in your 20s. And more specifically, the assets to buy in your 20s.

Because so far. You are making more money. And spending less than you make.

Here’s what to do with the money left over. To generate wealth in your 20s. By making the best investments for 20-year-olds.

increasing wealth in your 20s
Investing money in your 20s

13. Create An Emergency Fund

Growing wealth in your 20s means having an emergency fund. So, set 3-4 months of living expenses aside in an emergency fund.

Put the money in a risk-free savings account. Or, money market account.

CIT Bank has excellent online account options. For stashing your emergency fund.

It will come in handy if you lose your job. Get in an accident. Or, your car needs emergency repairs. Just to name of few things that can come up.

14. Pay Down Debt

Next, put every last penny you have into paying down debt. It’s the best investment you can make in your 20s.

Especially if you carry debt on your credit cards. Pay it off for an instant and huge return on your investment.

Then tackle your student loan debt. To get your student loans paid off in your 20s. And any other personal loans that you may have.

Paying down your debt. Will build your credit history.

And be sure to keep an eye on your credit score. You can check it on Credit Karma for free.

15. Invest In Your 401k

Whenever you get a new job. Immediately enroll in your employer’s 401(k) plan.

Contribute as much as you possibly can. Through automatic payroll deductions.

At the very least, invest the minimum required to get your employer’s matching contribution. It’s free money.

And part of your compensation package. So, don’t waste it. It’s part of how to get wealth in your 20s.

Don’t wait to plan and save for retirement in your 40s or 50s. So, here’s another option to get started at a young age securing your financial independence.

16. Open And Fund An IRA To Build Wealth In Your 20s

For amassing wealth in your 20s, open and fund a Roth IRA account.

Between your 401(k) plan and your Roth IRA account, you will be well on your way to saving for a secure retirement.

Plus, you will realize incredible tax benefits. That both 401(k) plans and IRAs have to offer.

Have you been meaning to open an IRA? Don’t delay saving for retirement.

You can open an online IRA account at M1 finance.

17. Invest In Taxable Accounts

Open and fund a taxable brokerage account. And start investing.

A taxable account doesn’t have the tax benefits of a 401(k) or IRA. But it allows you to invest more money.

Over and above the limitations that are imposed on retirement accounts. Because investing in taxable accounts is another way to acquire wealth in your 20s.

18. Stick With Stock Investments In Your 20s

In your 20s, by definition you are young. And have a long investment horizon. To ride out the ups and downs of the stock market.

Historically, stocks provide excellent investment returns. So don’t play it too safe and leave your money in a savings account.

Savings accounts are for emergency funds. On the other hand, the rich get wealthy by investing in stocks. Or, the mutual funds and exchange-traded funds that hold them.

So, open a taxable brokerage account and start investing in stocks. I use the Webull app.

Webull is easy to set up. And simple to use. Plus all stock transactions are completely free.

Learn more about the Webull app here.

19. Consider Real Estate Investments

investing money
Assets to buy in your 20s

Real estate is another productive asset to buy in your 20s. Your initial venture into real estate is likely to be your first house or condo.

Buying your home is usually a good use of your money in your 20s. But do your research.

Homes come with additional costs. And don’t buy if you are not settled in your current location. For at least the next 3-5 years.

If you need a mortgage for that new home. Consider Lending Tree for fast affordable mortgage options.

Then, by the time you hit 30. Make it a goal to have only 1 form of debt. That being your mortgage.

Beyond your home, real estate investing has become more accessible. Because of crowd-funded real estate investment platforms.

One I like is Realty Mogul. So, if you are not ready to buy a home. But desire to invest in real estate. Then give Realty Mogul a try.

20. To Build Wealth In Your 20s: Make A Plan

Last but not least, make a plan. Since I’ve given you a lot of things to think about. When it comes to amassing wealth in your 20s.

Think about each point carefully. Make a plan to address it.

Think about all the points as a whole. And how they will come together. In a wealth plan for your 20s.

Don’t wing it. But, take calculated risks.

Be open to new opportunities. Most importantly, be intentional and passionate about money, skills, and knowledge.

Finally, pull all of your expenses and investments together. In one place online. I like and use Personal Capital for this purpose.

The Personal Capital tool makes expense management. And investment management so much easier to do.

Best of all Personal Capital is free to sign up and use. You can learn more about Personal Capital here.

That’s it. Let’s wrap this article up with a summary.

Summary: How To Build Wealth In Your 20s

Are you interested in how to create wealth in your 20s? Then consider these 20 best ways to accumulate wealth at a young age. They will help you increase your net worth as fast as possible.

  1. Hustle & use your natural energy
  2. Focus on increasing your income
  3. Create multiple income streams
  4. Be open to new opportunities
  5. Follow the money, not your passion
  6. Don’t be afraid to change employers
  7. Learn and build marketable skills
  8. Live below your means
  9. Develop a money mindset
  10. Hang with money-minded friends
  11. Spend only on what you value
  12. Make and follow a budget
  13. Create an emergency fund
  14. Pay down debt
  15. Invest in your 401k
  16. Open and fund an IRA
  17. Invest in taxable accounts
  18. Stick with stock investments
  19. Consider real estate investments
  20. Make a wealth-building plan & stick to it

More Reading About How To Build Wealth In Your 20s

My Favorite Resources For The Best Ways To Build Wealth In Your 20s

Throughout the article, I mentioned several of my favorite finance resources. I have summarized them here for your convenience.

Best of all, most of them are free to sign and up and use. To build wealth in your 20s.

conclusions about gaining wealth in your 20s

Disclosure & Disclaimer: I am not a licensed investment adviser, financial adviser, or tax professional. And I am not providing you with individual investment advice, financial guidance, or tax counsel. Furthermore, this website’s only purpose is information & entertainment. And we are not liable for any losses suffered by any party because of information published on this blog.

How To Build Wealth In Your 20s