Our 20s are supposed to be an exhilarating time in our lives, but often this decade feels like a long series of lonely, bewildering experiences, with small existential crises scattered throughout.
Those years can go by quickly, but they can also be some of the most important years of your life.
When looking at dozens of life stories written by famous, successful people just before they died, Researchers at Boston University and the University of Michigan discovered that the most important moments that determine the coming years are most concentrated in the 20s.
“Assert your 20s as one of the simplest yet most transformative things you can do for your work, your love, your happiness, maybe even the world,” clinical psychologist Meg Jay used to say in a TED talk about the importance of this decade.
Steve Adcock used his 20s to achieve his dream of retiring early and traveling across the United States with his wife, Courtney.
In 2016, he and Courtney retired at the ages of 35 and 33, respectively, after amassing about $870,000 while working in the information technology field. With the right investments, their net worth grew to $1 million soon after.
Adcock attributes much of his success to the smart habits he adopted in his 20s. Here, Adcock shares three habits that all 20-somethings need to have in order to enjoy a healthy lifestyle. long prosperous life:
Steve and Courtney Adcock
CNBC makes it
Change jobs often
Gen Z and millennials get one bad rap job hopping, but Adcock believes it’s one of the best moves you can make in your career.
“If you don’t switch jobs often, you’ll leave money on the table,” he says. “I switched jobs five times over the course of my 14-year career and got a raise of 15% to 20% each, which increased my salary far above the rate of inflation.”
Julia Pollak, chief economist at ZipRecruiter, said the difference in pay increases for those who move compared to those who stay in their current positions is at a record high. told CNBC in the first day of this month.
Those who switched jobs received a 7.7% pay increase in November from a year earlier compared with a 5.5% increase for those who stayed at the job, according to the report. Federal Reserve Bank of Atlanta.
Just be careful not to switch companies too often. Try to hold on to a position for at least a year, says Adcock, because “some employers won’t hire candidates who will be successful after a short while – the hiring and referral process is expensive.”
Say “yes” more than say “no”
Your 20s are the best time to step out of your comfort zone and take risks.
“If you have an easy and low-stress job, you’re doing it wrong,” says Adcock. “Your 20s is when you should work hard, because you have more energy and less responsibility than when you’re older.”
Adcock recalls nearly turning down a promotion to a director position in her early 20s because she felt insecure or unprepared. “I’m so afraid of failure that instead of tackling what scares me, I hide my potential,” he says.
Either way, he accepted the role, a decision that earned him a higher salary for the rest of his career.
Saying “yes” to more advancement opportunities earlier in your career will often result in better results in the long run, from expanding your experience to meeting new people who can help propel your career forward.
Maximize your retirement savings
While retirement may seem far-fetched in the distant future, how you spend — and save — in your 20s can determine how you’ll live in old age.
Adcock recommends opening a Roth IRA account, which allows you to invest money that you’ve already paid taxes on in exchange for tax-free withdrawals in retirement and to maximize annual contributions. For the year 2023, that limit is $6,500 per year if you’re under 50.
Or, set up a 401(k) with your employer, and if your company matches employee 401(k) contributions, make the most of that benefit, adds Adcock.
“If you don’t consider either of these retirement savings strategies, I guarantee you’ll regret it later in life,” he says. “To live a rich, fulfilling life, you always want to think about the next 10 years… your 20s don’t last forever.”
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