Paragon Perspectives: Things I Wish I Knew in My 20s (And You Should Know Now)
Ah, your 20s—the decade of big dreams, small paychecks, and financial advice that sounds a lot like “just stop buying coffee.” If I could hop in a time machine and give my younger self some advice, here’s what I’d say—minus the lecture tone, promise.
Live Below Your Means (Future You Will Thank You)
In your 20s, every paycheck feels like a green light to splurge: dinners out, mini getaways, and yes, those lattes. But the real power move? Spending less than you earn. It’s not about depriving yourself—it’s about buying options for your future self.
Living below your means doesn’t just help you build an emergency fund—it also frees up money to invest, which is where the real magic happens (more on that in a second).
Compound Interest: Your Money’s Best Kept Secret
Here’s the thing: when I first heard about compound interest, I nodded along like I understood, but… I didn’t. So let’s break it down simply.
Compound interest is interest that you earn on both your original money (the principal) and on the interest that money has already made.
Think of it like this: Imagine you plant a tree. That tree grows fruit—and inside each piece of fruit? More seeds for new trees. Over time, your one tree turns into a whole orchard, and suddenly, you’re swimming in apples. Compound interest works the same way: your money makes more money, and then that new money starts making money too.
The earlier you start investing, the longer your “money orchard” has to grow. Even small amounts can snowball into something significant thanks to this compounding effect. Wait too long, and you miss out on the time factor—which, let’s be honest, is the real secret sauce here.
Example*:
Let’s say you invest $1,000 at a 7% annual return.
- After 1 year: you have $1,070.
- After 10 years: $1,967.
- After 30 years? Nearly $7,612—without adding another penny.
That’s compound interest doing its thing.
*This is a hypothetical example and is not representative of any specific situation. Your results will vary. The hypothetical rates of return used do not reflect the deduction of fees and charges inherent to investing.
Money Is a Tool, Not the Destination
We often think the goal is to “be rich.” But money, at its best, is a tool—a way to build the life you actually want. Whether that’s owning a business, traveling, or simply sleeping well at night knowing you’re financially secure, the purpose matters more than the number in your bank account.
So: don’t chase money just for money’s sake. Define your goals, and let money be the tool that helps you get there.
Final Thoughts: Start Where You Are
Whether you’re in your 20s, 30s, or beyond, these lessons still apply. The sooner you start, the more your future self will thank you. And if you’re unsure how to begin? That’s exactly why we’re here. Give us a call or email to learn more.
About Phil Rosenau
As a graduate of Germantown Academy, Phil Rosenau earned his bachelor’s degree in economics at Drew University, while also earning a minor in business management. His passion for creating and maintaining business relationships drove him to join the Prudential Advisors team, where he met Charlie and Ricardo before starting Paragon Wealth together.
Phil is a lifelong resident of Bucks County and the son of a local entrepreneur. He understands the unique needs of small business owners, takes pride in providing his clients with the knowledge to understand their unique financial situation, and helping them navigate their financial future with confidence. He enjoys spending time with his wife, Caroline, and two children, he is the current president of the MDM networking group, and he is active with the local CrossFit community. Phil is also proud to be part of the Drew University Lacrosse Legacy where he played all four years. You can find Phil here on LinkedIn, or here on Facebook.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All investing involves risk including loss of principal. No strategy assures success or protects against loss.
Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Great Valley Advisor Group, a Registered Investment Advisor. Paragon Wealth Management and Great Valley Advisor Group are separate entities from LPL Financial.