When you're living paycheck to paycheck in your 20s, more focused on making rent and having money to spare for dinners out with friends and the pair of shoes you've been praying would make it to sale season, the concept of investing may not be top of mind (though it should be).
"It's important to enjoy life today and the experiences that come with being a young adult, but today's enjoyment should not come at the expense of tomorrow's financial stability," Kelly Lannan, Director of Young Investors at Fidelity Investments, explains. Looking back on her 20s, the finance pro certainly wishes she could go back and tell her younger self a few things about building wealth. "I wish I understood the power of investing and compounding when I was in my early 20s," she admits.
Lannan fell victim to one common pitfall young people often make when it comes to money. Instead of opting into her company's 401(k) plan, she chose to keep that small amount of cash in the bank account each month. "I didn't take advantage of those early years and how that money could have continued to compound and grow," she continues. With a bit of perspective and years of experience, Lannan is sharing how to build wealth in your 20s. If you're currently in the midst of this defining decade, take note of the finance expert's tips for growing your savings, starting today.
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