For most of my 20s, a single trip to urgent care or a big car repair would have devastated my finances. But I actually get a lot of letters from twentysomethings who are way more responsible with money than I was at that age!
Here's a letter I got from a 23-year-old who's already maxing out their Roth IRA each year. They aren't contributing to their 401(k) because their employer doesn't match, so they're worried that they won't be able to retire. https://www.thepennyhoarder.co...t-savings-at-age-23/
I think this person will be in great shape to retire if they're already maxing out their Roth IRA, assuming they continue to prioritize saving and investing. Because he or she is starting so early, their money will have so much time to compound over time.
It made me wonder: What lesson about money does everyone wish they'd known in their early 20s? Or if you could go back to your early 20s, what would you do differently?
For me, it would be to treat paying off high-interest debt as the best investment you can make. When you're paying 15%+ interest rates, getting rid of that debt is your top priority. If I could go back in time to when I was 23, I would put every extra cent toward getting out of debt faster. Then I'd start maxing out a Roth IRA once I was out of debt.
Tell us what you would do differently with your money if you were starting over with a blank slate at 23!