I’m am in my early 20s, and I’ve built up a stock portfolio worth $110k, primarily invested in VOO.
While I’m proud of this achievement and the progress I’ve made towards financial independence, I can’t shake the feeling that I’m becoming addicted to the idea of investing and the dream of early retirement.
I find myself constantly thinking that every cent should go towards my investments. Up to the point where I don’t spend money on anything else. I keep my expenses very very low.
My thoughts are consumed with calculating how much closer I am to my goal and dreaming of financial freedom. While I know that planning for the future is important, I’m starting to worry that I’m missing out on my 20s.
I should be enjoying life, exploring new experiences, and building memories, but instead, I find myself fixated on my portfolio and saving every penny.
Has anyone else experienced something similar? How do you find a balance between working towards financial goals and living in the present?
Congratulations on building up a six-figure portfolio by your early 20s – that’s no small feat. You’re clearly disciplined and focused, which are fantastic qualities. But let’s talk about the elephant in the room: you’re treating your life like a spreadsheet, and last time I checked, spreadsheets don’t go on fun dates or take epic vacations.
Here’s the deal: Money is a tool to live a great life, not the other way around. If you’re constantly obsessing over every cent and living like a monk to pad your investment account, you’re missing the point entirely. Your 20s are prime time for experiences that shape who you become – travel, relationships, career exploration. These aren’t frivolous expenses; they’re investments in your personal growth and future happiness.
Don’t get me wrong – saving and investing are crucial. But so is living. Here’s what I want you to do:
- Set a “fun budget.” Allocate a specific amount each month for experiences, hobbies, or whatever lights you up. Treat this as seriously as your investment contributions.
- Define what “enough” looks like. Having a clear financial target can help ease the anxiety of constantly needing to save more.
- Invest in yourself. Skills, networking, and personal development can pay huge dividends in your career and earning potential.
- Practice mindful spending. Instead of defaulting to “no” for every expense, ask yourself, “Will this significantly enhance my life or create lasting memories?” Remember, life is happening now, not just in the future. Embrace a mindset that values both saving for the future and enjoying the present. This balance will make your financial journey more sustainable and fulfilling.
- Hang out with people who have diverse financial perspectives. Your investing friends are great, but make sure you’re not in an echo chamber.
Remember, the goal isn’t just to have a fat bank account when you’re older. It’s to create a life of meaning, joy, and fulfillment along the way. Don’t sacrifice your youth on the altar of compound interest. Find that balance, and you’ll be truly wealthy in all the ways that matter.