👋 Hey Investors,
Today, I am starting a new three-part series on how different age groups should invest their money. This issue covers ages 18 to 27. Next week, I will move on to ages 28 to 35, followed by ages 36 to 50. Each stage of life comes with a different income level, a different set of responsibilities and a different attitude to risk. Most people spend their twenties guessing. You do not have to.
1. Time Is Your Most Powerful Investment Tool
Your early twenties are, honestly, the most valuable years you will ever get for investing. It is not because you earn a high salary. It is because time is doing most of the work for you. Studies from Vanguard and JP Morgan show that someone who invests £100 per month from age 18 to 27 and then stops still ends up with more money at 60 than someone who invests £200 per month from age 28 to 60. It feels unbelievable at first, but that is compounding. This is why even low-income investors can build real wealth when they start early. The biggest mistake people make in their twenties is believing small amounts do not matter. That mindset keeps people broke for decades.
2. The 60% 20% 20% Strategy for Ages 18 to 27
If you are between 18 and 27, the best strategy is simple. Put 60% into a global index fund or the S and P 500 to build a stable foundation. Put 20% into Bitcoin for long-term asymmetric upside. Use the final 20% for one company you fully understand and genuinely believe in. For example, if you invest £100 per month, you are putting £60 into your index fund, £20 into Bitcoin and £20 into your chosen stock. Someone who starts at 23 with only £60 per month can still beat someone earning £70000 who waits until 33 and invests £150 per month. Time beats income when you start early.
3. Small Money Still Wins When You Stay Consistent
And here is the part most people never say out loud. Your life might feel messy right now. You might be working retail, studying or earning under £2000 a month. But this is exactly when consistency matters most. Even £50 per month from age 20 to 27 adds up to £4200 invested and usually grows to around £6000 to £8000. It sounds small, but that is the start of the snowball. Automate your contributions. Avoid bad debt. Stay consistent even in the months you feel broke. Most people waste these years because they think their current situation is permanent. It is not. These habits turn into compounding power later, and that is what becomes life-changing.
4. What Comes Next in This Series
Next week, I will break down the plan for ages 28 to 35, where income usually rises and investing gets easier. After that, the final part will cover ages 36 to 50 for people who want to catch up and still build long-term stability. If you know someone in their twenties who needs direction, send this to them.
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