Three Essential Financial Lessons for Your 20-Year-Old Self

Hi, I'm Tyler, a former financial advisor and portfolio manager. Now, I create financial content for free to help you navigate your financial journey without any costs.

1. Avoid Spending More Than You Earn

The single biggest mistake with money you will ever make when you're young is spending more than you earn by relying on credit cards. Credit card companies can charge you up to 30% interest, especially for those with low credit scores. Remember, credit card debt can destroy you financially and emotionally.

2. Pay Down Debt Immediately

The second biggest mistake you can ever make is not paying down that debt immediately. Do not invest in any asset or put money in an emergency fund until you have paid down that debt entirely. Think of it this way: paying down high-interest debt is the equivalent of a 30% guaranteed return. There is no other investment that can guarantee such a return.

3. Invest Early with a Roth IRA

Once you're set with the first two rules, do everything you can to start investing at least $50 a week in a Roth IRA and low-cost index funds. This is the easiest and laziest way for you to eventually become a millionaire.

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