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The financial power of youth

As a 20-something making progress towards your financial goals can feel challenging. With paying off university debt to trying to get a foot on the property ladder it can feel like your opportunity for success with saving and investing is limited. Plus many millennials cite lack of personal finance knowledge for failing to start investing. Yet there is one powerful reason why it is important to not become complacent with saving in your 20s. 

financial power of youth

The power of youth. Millennials listen up, you have time on your side when it comes to investing - the most powerful tool. After all money is simply a medium for exchanging time so it makes sense that as you have more time to invest than someone in their 30s, 40s, 50s etc you have the potential in the long run to earn more. 

This is all links to the power of compound interest. Compound interest is the idea that the interest you earn each year becomes part of the cumulative balance that is interest earning. Over time the balance will grow exponentially (at a greater rate the higher the interest rate is) , meaning that the more years you allow it to grow the greater the increase each and every year. 

For longer-term investment goals such as retirement this is hugely beneficial as it means that you can invest less but gain the same returns. It is only through the power of compound interest that millennial can retire as millionaires from as little as £65 a month.  

The danger of compound interest 

However, this is what makes being in debt spiral out of control. As just as compound interest can be hugely beneficial to your savings and investment goals it is can see debt balances exponentially increase too. This is why you have to get intentional about paying off debt in order to make progress quickly as all to often you will spend years simply paying off the interest without even touching the principle. 

What you can do right now. 

Firstly, get yourself out of debt so that the negatives of compound interest don't eat up your money. If your unsure where to start read about the 5 steps to getting out of debt. So whilst your earning potential may not be as high in your 20s as it is in your later years. Investing now can allow you to save more money in the long run. The trick to making the most out of compound interest is to start investing NOW. Even if its just a little amount, investing young is so important. Don't let being a student let you put of starting to invest, try supplementing your income with these ideas and check out these investing options for students

How are using time to your financial advantage?


If you are new to our blog, We are all about finding ways for students and millennials to make and save more money. Here are some of my favourite sites and products that may help you out:

  • Start a blog. Blogging is our side-hustle just over a year ago we didn't think I would bring us any income . You can create your own blog here with my easy-to-use tutorial. You can start your blog for as low as $3.49 per month plus you get a free domain if you sign-up through my tutorial.
  • Use Swagbucks for your online searches. Swagbucks is a passive way to earn gift cards. Over the course of a year you could earn $500.  Swagbucks is just like using Google to do your online searches, except you get rewarded “points called SB” for the things you do through their website. Then, when you have enough Swagbucks, you can redeem them for cash, gift cards, and more. Receive $5 for signing up today.
  • Try matched betting. Matched betting is a great way to may easy money online. Despite the name it is not gambling and could see you earn £500-£1000 a month for only a couple of hours work a day see here and here. For your free trial head to profit accumulator or join the Facebook 'getting started' group.  
  • Sign up for a cashback site like Quidco. where you can earn CASH BACK for just spending like how you normally would online. The service is free too! Plus, when you sign up through my link, you also receive a free £10 bonus!
*This post contains affiliate links, all opinions are our own*


  1. Love how you point out debt can have the same effect--only negatively! Wish I had started investing sooner, though I was good about the debt!

  2. My brother is 10 years younger than me and I harp on this all the time. He's part time employed right now after finishing college and keeps telling me he'll worry about retirement when he gets full time job and I keep telling him he's nuts and should be putting away a portion of every check he does get.