Section 5: Milestones by Decade
In Your 20s: You Are a Billionaire… of Time
If you’re in your 20s, you’re holding one of the most valuable assets there is—time. We often hear the saying, YOLO (You Only Live Once); however, the biggest risk isn’t that tomorrow won’t come… It’s that it will come, and you won’t be ready. We see this all too often. Many reach retirement age but are unable to retire for one reason or another.
Every day is an investment opportunity that compounds across decades, so future-you is hoping you show up now.
This decade is the single best time to build wealth because:
Even if your income feels small now, this decade often comes with fewer financial responsibilities, giving you space to invest more of what you earn.
Your dollars are worth more today than they’ll ever be, thanks to compound interest working for you… and inflation working against you.
The prices of everything, such as groceries and insurance, will continue to rise year after year. You will think you get a pay raise, only to realize you’re paying more for everything, so your dollars do not go as far as they once did.
You still have time on your side — even if you start at 29.
Mistakes made in your 20s rarely define your financial future, but the habits you form absolutely will. Making a mistake in your 20s is typically not too financially devastating, because you may not have much to lose, and there is generally still time left to correct and maybe even reverse mistakes.
In this decade, you are shaping habits that will either lighten or burden the decades that follow.
To Do List For Your 20s — Smart Moves That Will Compound
Create your money plan and review it yearly.
You’re not aiming for perfection—just consistency. This course/workbook is the perfect place to start!
Invest in your financial literacy.
Staying uneducated about money is one of the most expensive mistakes you can make. Begin your literacy journey now, and you’ll not only reshape your future but potentially the futures of generations to come. Treat this as a part-time job or course. Dedicate time each week to study, just like you would to a profession or in a formal course.
If you’re not sure where to begin, start here. Browse this site as the links provided are curated to help spark questions, lead your exploration, and deepen your learning.
Suggested starting points for your 20s:
Learn about the FIRE Community, especially Coast FI. Understanding your options early expands what’s possible later.
Listen to podcasts, read books, follow mentors, and take courses (like this one!) to fast-track your growth.
🔸 Check out the Recommended Books page. Many of the books and videos listed are available for free on YouTube.
🔸 Visit the Definition page to grasp essentials like: assets vs. liabilities, and good debt vs. bad debt.
🔸 Start shifting your mindset. Begin exploring legal ways to write off expenses.
Learn to live cheaply and mindfully.
The earlier you master cost-effective living, the greater your long-term wealth. Find ways to reduce spending and increase savings. The FIRE community is packed with ideas to help.
A few reminders for cost-effective living:
🔸Aim to keep housing costs under 25% of your gross income, or no more than 1/3 of your gross income. This should include principal, interest, taxes, insurance, and any HOA fees. Some even suggest including utilities as well, which will help you afford to invest more, accelerating your path to wealth.
🔸Visit the Groceries and Gas page for other cost-effective living tips.
Automate what you can.
Life gets hectic, and automation can help keep your finances steady. Consider auto-pay for savings, investments, and bill payments if you're comfortable doing so.
🔸 Bonus Tip: Using a credit card with useful reward points for some of your automated bills can offer extra security and perks, but DO NOT use credit cards if you cannot pay off the full balance every month, as this debt will undo all your gains.
Goals by 30
Understand the benefits and drawbacks of the FIRE movement (especially Coast FI).
This is important to understand at this stage in life, because if FIRE or Coast FI is something you find yourself interested in, it can be almost impossible to accomplish if learned later in life.
Be consistently investing at least 15% — 25% of your GROSS income.
You will not only benefit from compound interest, but this habit will help set the foundation for lasting financial freedom. You’re building a legacy, not just a lifestyle.
Have at least 1x your annual income invested.
This proves you’ve moved beyond “just surviving” living paycheck-to-paycheck to building real wealth. This is when compound interest will truly start to gain momentum.
Remember:
This decade is your launchpad — a time to build firmly or risk sinking slowly. The choices you make now are important as you enter the next decade, which is usually dubbed the “messy middle”. What you do today will either reinforce your foundation, making decisions easier later, or become a weight you’ll carry into the next chapter. You don’t need to master everything at once, but a few well-chosen habits, done with consistency, can shape a life that feels lighter, fuller, and aligned with your deeper purpose.
Please note that I am not a financial advisor. The content provided in these materials reflects my personal insights, experiences, and suggestions for financial stewardship and legacy-building. It is designed for inspirational purposes only and should not be considered a substitute for professional financial, legal, or tax advice.