5 Things You Should Do Differently With Money at 18–25: From a Financial Planner
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Looking back at my early twenties, there are a handful of choices I would make very differently. These are not theoretical ideas from a textbook. They come from real mistakes, missed opportunities, and some wins that took longer than they needed to. If you are in college, just out of school, or in your first few years of work, these are the shifts I would make in your shoes.
Why it matters: A few decisions in your twenties can accelerate or stall your money, career, and relationships for years.
Get Truly Aggressive With Investing
In my early twenties, I thought I was an aggressive investor because I picked individual stocks and tried to beat the market. I spent a lot of time on fundamental and technical analysis, and I did have a few wins, but most of those bets did not pay off. The experience was valuable, yet the portfolio results were mediocre.
If I could redo that period, I would still be aggressive, but in a different way. I would focus far less on stock picking and far more on owning broad market exposure with leverage where appropriate. I would accept that the key advantage in my twenties is not insight, it is time. Time smooths volatility and magnifies compounding.
Two specific areas stand out. First, I would have taken at least a small, defined exposure to cryptocurrency, treated as a speculative asset, not a core holding. Back then I understood the technology, even mined some coins, but I dismissed it because it did not fit my fundamental, cash flow driven philosophy. I saw that prices were not anchored in traditional metrics and decided that meant “do nothing” instead of “size this appropriately.” A small allocation, something like a few percent of my total portfolio, would have been enough to participate in the upside without betting my future on it.
Second, I would study and use long dated options, especially LEAPS (long-term equity anticipation securities), on broad indexes rather than single stocks. These contracts can give a young investor with limited cash meaningful upside exposure while clearly capping the downside at the cost of the contract. For someone in their twenties, the real risk is often not being in the market at all and watching inflation quietly erode savings that sit in cash year after year. Used carefully, with education and discipline, LEAPS can be a tool to tilt more of your limited dollars toward long term growth.
This is also where working with a knowledgeable advisor helps. Options and leverage are not beginner tools, and the people who could benefit the most from smart, contained risk often have the least access to good guidance. A competent advisor can help you size positions, understand worst case scenarios, and avoid turning a powerful tool into a gambling habit.
Why it matters: Smart risk in your twenties can do more for your net worth than decades of cautious saving later.
Do Not Build Your Twenties Around A Long Distance Relationship
In my early twenties, I stayed in long distance relationships because I was deeply romantic and wanted to believe that love could bridge any gap. I craved connection, and when I found it, I held on, even when our lives pulled us to different cities. On paper it looked noble. In reality it was draining.
Physical distance amplified stress and doubt. Travel was hard, seeing each other was rare, and insecurities filled the gaps. The relationships eventually ended anyway, but not before consuming years of emotional energy. On top of that, the opportunity cost was steep. I said no to meeting new people locally, to casual dates, to friendships that could have turned into something more, all in service of a relationship that did not have the proximity it needed to thrive.
If I were advising my younger self, the rule would be simple. If life pulls you and someone you care about to different places for an extended period, treat that person as an important friend, not a long term romantic partner. Stay kind, stay connected, but free both of you to build a life where you actually live. That approach respects the bond you shared while making room for healthy relationships that fit your real day to day life, not just your phone screen.
Why it matters: Who you spend time with shapes your opportunities, energy, and happiness more than any single financial decision.
Move To A Top City Sooner
After college, I stayed close to my parents and my hometown. It felt safe and familiar, and loyalty to family is a real value. The problem was that the local economy did not match my ambitions or my chosen field. I wanted to work in biotechnology, a capital intensive, high skill industry. Those roles simply did not exist in a meaningful way where I lived.
Two years after graduating, I finally moved Austin, TX. A US city with a vibrant economy and real opportunity. Check any current list of high growth, high opportunity US cities and you will see places like Austin near the top, which is exactly the kind of environment that changed my trajectory. I moved with about three thousand dollars and not much else, and the move still worked out better than staying put.
If I could rewind, I would fast forward that decision by at least a couple of years. In your twenties, you can afford cramped apartments, roommates, and a little chaos in exchange for being in a place where there are abundant jobs, ambitious peers, and industries that fit your skills. A big, opportunity rich city is not a magic fix, but it is a force multiplier. It puts you in the path of better luck.
Why it matters: Your early career is shaped as much by the ecosystem you are in as by how hard you work.
Use “Good Debt” To Buy Assets, Not Just Avoid Debt Entirely
I grew up as a devoted follower of zero debt personal finance. Apart from a mortgage, debt was framed as something to avoid at all costs, so I did. I paid cash for used cars, avoided borrowing for graduate school, and refused to use credit to invest. For someone who chronically overspends, that level of restriction can be life saving. For someone like me who was already living within their means, it can be limiting.
The impact showed up in specific ways. Paying cash for very cheap cars meant driving unreliable vehicles that broke down often and cost more in repairs, time, and frustration than a sensible, financed car would have. Saying no to graduate school to avoid loans meant walking away from education that could have increased my earning power. Not borrowing even modestly to buy productive assets while young meant missing a chance to let those assets compound for decades.
A clear example was what I did with a pandemic era stimulus check. Instead of investing that money during a period when markets later surged, I used it to pay off a car loan with an interest rate of around three percent, which is the kind of low cost debt many investors would gladly keep. On paper it was risk free and responsible. In hindsight the opportunity cost was huge.
If I could advise my younger self, the rule would be this. If you regularly spend less than you earn and do not have a pattern of using credit to fund lifestyle upgrades, you can consider using measured amounts of debt to buy assets or invest in your education. Debt used to buy appreciating assets or valuable skills is a tool. Debt used to buy fleeting consumption is a trap. The goal is not zero debt in all cases, it is thoughtful debt with clear upside and a realistic plan to pay it back.
Why it matters: Refusing all debt can quietly cost you more than using the right debt for the right reasons.
Show Up As A Learner, Not A Finished Product
When I first entered the job market, I wanted to impress employers by showing that I was already an excellent employee. I tried to present myself as polished, capable, and close to fully formed. On some level this came from pride, on another level from insecurity. I wanted to skip the awkward learning curve and land directly in competence.
With more experience on the other side of the table, it is obvious why that worked against me. No one expects a new graduate to be an amazing contributor on day one. Leaders look for people who are open, curious, and willing to be coached into the specific ways their organization creates value. There is always a ramp up period where you learn the business, the culture, the processes, and the real problems worth solving. That is normal.
If I could coach my younger self, I would say: “lead with hunger to learn”. Be honest about what you know and what you do not. Ask good questions, then act on the feedback you get. You can still show competence and initiative, but pair it with humility. Managers remember the new hire who grows visibly in the first six to twelve months far more than the one who arrived trying to look “finished”.
Why it matters: Early in your career, your ability to learn is more valuable than your current skills.
Putting It All Together For Your Twenties
If you are between eighteen and twenty-five, you sit at a rare intersection. You have time for compounding, flexibility to move, and space to experiment before your life fills with commitments. That window will not be this wide again.
Use it to tilt your finances toward long term growth, even if that means taking thoughtful, educated risks instead of hugging cash. Place yourself in a city or ecosystem that matches your ambition, not just your comfort zone. Protect your emotional energy by choosing relationships that fit your actual life, not a fantasy of what love might overcome. Stay open to learning at work and use the right kind of debt to expand your future rather than only trying to erase every liability from your balance sheet.
If even one of these shifts helps you avoid a mistake or capture an opportunity a few years earlier than I did, your future self will be grateful you listened.
