Issue #53: I’m 27... Here’s What I’d Tell My 20-Year-Old Self About Money

^{Read Time: 2 mins}

Money advice for 20 year old me

If I could go back in time and give my 20-year-old self some financial advice, I’d have a lot to say.

Like, A LOT.

So, I thought I’d share these lessons with you, so you can get ahead faster, and not make the same mistakes I did😅.

1️⃣ Stuff is not the real sign of success

Owning the latest iPhone, designer trainers, or a flashy car doesn’t mean you’ve made it. It just means you’re good at spending. You don’t become a millionaire by spending a £1m, you get it by HAVING £1n

2️⃣ Learn balance early

There’s no prize for being the most frugal person in the room. Equally, spending every penny on nights out and designer clothes isn’t it either. Find the balance—save and invest, but also enjoy an allocated amount of your money guilt-free.

3️⃣ Don’t care what others think

Your friends won’t remember if you skipped that £70 bottomless brunch. Your coworkers don’t care if you repeat outfits. Make financial decisions based on what works for you, not to impress people who won’t pay your bills.

4️⃣ Don’t rush to be rich

Every scam, dodgy crypto scheme, or ‘get rich quick’ business preys on people desperate to skip the hard part. The truth? The fastest way to wealth is spending less than you make, investing it well, and being patient.

5️⃣ Don’t rush to be successful

At 20, you think you should have it all figured out. At 27, you realise no one has it figured out. You can spend the entire decade of your 20’s not knowing your long term plan and still end up successful beyond your entire dreams. The average millionare makes is at 57…

6️⃣ Invest early and often

A small amount invested at 20 is worth way more than a bigger amount invested at 30. That’s the power of compound interest. Your future self will thank you for starting now, even if it’s just £10 a month.

7️⃣ Don’t pick up unnecessary debt

There’s good debt (a mortgage, an education loan that increases your earning power), and then there’s bad debt (BNPL…). Buy now, pay later isn’t ‘free money’—it’s just future stress.

8️⃣ Find a way to track your money (but not obsessively)

A budget isn’t a prison sentence—it’s a plan that gives you control. Whether it’s an app, a spreadsheet, or just checking your balance regularly, knowing where your money is going isn’t a nice to have, it’s a must!

9️⃣ Your income matters more than your budgeting skills

You can only cut costs so much. Yes, saving money is important, but earning more money changes the game. Focus on developing skills that increase your earning potential rather than just restricting spending.

🔟 The best investment? Investing in yourself

Spending money on courses, books, or learning a skill pays off way more than any stock tip. If it helps you make more money in the long run, it’s an investment, not an expense.

1️⃣1️⃣ Credit cards aren’t evil—if you use them right

A credit card isn’t free money, but it also isn’t a financial death trap. Used wisely (paying it off in full each month), it builds your credit score and gives you rewards. Used recklessly, it’s a one-way ticket to debt.

1️⃣2️⃣ Emergency funds aren’t negotiable

Even £500 saved for emergencies can stop a bad day from becoming a financial disaster. Start with a small buffer, then aim for 3-6 months of living expenses for real peace of mind.

1️⃣3️⃣ Spend money on memories, not things.

That £800 jacket? No one remembers or cares except you. Spend on things you actually value, not what you think will impress other people.

1️⃣4️⃣ Renting isn’t a waste of money

You’ll hear people say, “You’re paying someone else’s mortgage!” But guess what? Owning a home isn’t always the better option. Renting gives you flexibility, and if you’re saving and investing alongside it, you’re still building wealth.

1️⃣5️⃣ Learn how tax works ASAP

The first time you get paid and half of it disappears, you’ll wish you understood tax brackets. Learn how to reduce your taxable income legally—pensions, ISAs, and allowances exist for a reason.

1️⃣6️⃣ Side hustles are great, but don’t burn out

Yes, making extra money is smart. But if you’re working 16-hour days and never sleeping, is the extra cash really worth the cost to your health? Make sure your hustle is sustainable.

1️⃣7️⃣ Passive income isn’t truly passive

Anything that makes money ‘while you sleep’ took effort at some point. Whether it’s investing, creating a digital product, or rental income—it all requires work upfront. Don’t fall for the ‘money for nothing’ trap.

1️⃣8️⃣ Avoid lifestyle creep

When you earn more, it’s tempting to upgrade everything—nicer car, bigger flat, fancier holidays. But if your expenses grow with your income, you’ll never actually feel richer. Keep your costs stable and let your wealth grow.

1️⃣9️⃣ Money can buy happiness—but only up to a point

Earning enough to cover your needs and reduce stress massively improves your happiness. But beyond a certain point, what actually matters is time, relationships, and experiences, not just your bank balance.

2️⃣0️⃣ No one has it all figured out

Even the people who seem financially ‘perfect’ have money worries and make mistakes. Focus on your own journey, not comparing yourself to others who might just be good at looking successful.

What’s Happening Right Now In Finance?

Self Assessment’s are due TODAY:

Here’s who needs to fill one out!

• your self-employment income was more than £1,000 (before taking off anything you can claim tax relief on)

• your income from renting out property was more than £2,500 (you’ll need to contact HMRC if it was between £1,000 and £2,500)

• you earned more than £2,500 in untaxed income, for example from tips or commission

• your income from savings or investments was £10,000 or more before tax

• you need to pay Capital Gains Tax on profits from selling things like shares or a second home

• you’re a director of a company (unless it was a non-profit organisation, such as a charity)

• you, or your partner’s, income was over £60,000 and you’re claiming Child Benefit

• you have income from abroad that you need to pay tax on, or you live abroad but have an income in the UK

• your total taxable income was over £150,000

• if you earned over £50,270 in the 2023/24 tax year and make pension contributions you might have to complete an assessment to claim back the extra tax relief you’re owed

• you’re a trustee of a trust or registered pension scheme

• your State Pension was your only source of income and was more than your personal allowance

• you received a P800 from HMRC saying you didn’t pay enough tax last year.

Reader Spotlight

‘Is now a good time to invest, or should I wait?’

To answer this I’ll refer to a commonly used phrase:

“Time IN the market always beats TIMING the market.”

Trying to predict the perfect moment to start investing is nearly impossible - 85% of fund managers can’t be a global index fund over 15 years, so why can you?

What’s more important is starting as early as you can to give your money time to grow. Thanks to compound interest, even small amounts invested today can snowball into significant wealth over time.

That said, before you jump in:

• Make sure you’ve covered the basics - ensure you’re working towards paying off high-interest debt and have built an emergency fund before you start investing.

If your financial foundation is secure, there's no need to wait! The earlier you start, the more your investments can grow. And you only need to start with £1!!

That said, do you know which platform you can start with just £1?

That’s right, my FAVOURITE platform, Trading 212.

And if you open an account with THIS VERY SPECIAL LINK or use the code ‘GN’, you’ll get a free fractional share worth up to £100!!

Sponsored link. Remember that when investing, your capital is at risk and your investments may rise and fall. T&C’s apply.

Got a question for next week’s newsletter? Just hit reply! Let me know your question and whether you’d like to stay anonymous. 😊 

^{DISCLAIMER: None of the above is financial advice. This newsletter is strictly education and should not be taken as investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and always do your own research.}