Our 20s are supposed to be an exhilarating time in our lives, but more often than not, this decade feels like one long stretch of lonely, bewildering experience, with little existential crises sprinkled throughout.
Those years can fly by, but they can be some of the most important of your life.
When examining dozens of life stories written by famous and successful people before their death, researchers at Boston University and the University of Michigan found that the most important moments that defined the next years were the most concentrated in two decades.
“Admitting your 20s is one of the simplest, yet most transformative things you do for work, for love, for your happiness, maybe in the world,” said clinical psychologist Meg Jay during a TED Talk about the importance of this decade .
Steve Adcock used his 20s to pursue his dream of early retirement and traveled the US with his wife, Courtney.
In 2016, he and Courtney retired at the ages of 35 and 33, respectively, after amassing about $870,000 working in information technology. With the right investments, his net worth grows to $1 million in no time.
Adcock credits much of his success to the smart habits he adopted in his 20s. Here, Adcock shares three habits all 20-somethings need to enjoy a long and prosperous life:
Steve and Courtney Adcock
CNBC Create
Change jobs often
Gen Z and millennials get a bad rap for job hopping, but Adcock believes it’s one of the best moves you can make for your career.
“If you don’t switch jobs regularly, you’re leaving money on the table,” he says. “I changed jobs five times in my 14-year career and got a 15% to 20% raise each time, which increased my salary above the rate of inflation.”
The difference in wage growth for job switchers relative to those who stay in their current roles is at a record high, Julia Pollak, chief economist at ZipRecruiter, told CNBC earlier this month.
Job seekers received a 7.7% pay increase in November compared to a year earlier compared to a 5.5% increase for workers, according to the Federal Reserve Bank of Atlanta.
Just be careful not to switch companies too often. Try to stay in a role for at least a year, says Adcock, because “some employers won’t hire a candidate who will be in charge after a while — the hiring and onboarding process is expensive.”
Saying “yes” more often than saying “no”
Your 20s are the best time to step out of your comfort zone and take risks.
“If you have an easy, low-stress job, you’re doing it wrong,” Adcock says. “Your 20s are when you have to burn your ass, because you have more energy and less responsibility than when you’re older.”
Adcock recalls almost turning down a promotion to a director-level role in his early 20s because he wasn’t confident or ready. “I was so afraid of failure that instead of dealing with what I was afraid of, I hid my potential,” she said.
He accepted the role, a decision that earned him a higher salary throughout his career.
Saying “yes” to more promotions and opportunities earlier in your career will yield better results in the long run, from expanding your experience to meeting new people who can help advance your career.
Maximize your retirement savings
Although retirement may seem far off in the future, how you spend — and save — in your 20s can determine the kind of life you’ll lead when you’re older.
Adcock recommends opening a Roth IRA account, which allows you to invest your tax-paid money in exchange for tax-free withdrawals during retirement, and maximize your annual contributions. For 2023, the limit is $6,500 per year if you’re under 50.
Alternatively, set up a 401(k) with your employer, and if your company matches employee 401(k) contributions, take advantage of those benefits, Adcock added.
“If you do not consider one of these retirement saving strategies, I guarantee you will regret it later in life,” he said. “To live a rich and full life, you always want to think 10 years ahead… your 20s don’t last forever.”
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