Financial and investment recommendations for young people aged 18 to 30

The age of 18 often marks the beginning of financial independence for many young people. It's the time when you begin to make your own financial decisions, and perhaps consider taking your first steps into the world of investing.

Financial and investment recommendations for young people aged 18 to 30

Table of contents

Why invest as early as possible?

Investing early can be beneficial in many ways.

For one thing, it can help you build a solid financial foundation for the future. Whether it's financing your education, buying a home, building a retirement fund or achieving other financial goals, the money you invest early can help you reach those goals more easily.

On the other hand, it can help you cope with difficult macroeconomic situations. Investing helps you manage the impact of inflation. Inflation reduces the purchasing power of money over time. Investing your money can potentially help you beat inflation by earning higher returns than its rate, thus preserving your purchasing power.

To help you get started on the right track, here are a few financial recommendations to consider:

Building healthy financial habits

Opening a bank account, budgeting and managing your finances are key steps for young people wishing to adopt healthy financial habits and start investing. Learning how to manage a bank account and budget from an early age helps develop healthy financial habits. This includes understanding how money is earned, spent, saved and invested.

1. Building financial discipline

Managing a bank account and drawing up a budget requires discipline. This can help you avoid impulsive spending and maintain control over your finances. This discipline is essential to accumulate the money needed for investment.

2. Saving for investments

By managing their finances responsibly, young people can save money for investment later in life. Budgeting helps determine how much money can be saved each month, which can then be invested to generate returns. Note that investing is a form of saving. However, you need to distinguish between savings that allow you to have money available quickly, such as the stock market and cryptocurrencies, and savings in which money is not available quickly such as real estate and life insurance. Saving money is also important to have financial security in case of the unexpected.

3. Building a financial history

Opening a bank account and managing your finances helps establish a financial history. A good credit history is important for accessing loans or other types of investment in the future, such as buying a home or financing entrepreneurial projects.

4. Understanding your income and expenses

By budgeting, a young person can get a clear picture of his or her expenses and income. This can help identify areas for saving, investing or spending more wisely, contributing to better overall financial management.

Avoid unnecessary debt

Debt can hamper your ability to invest and save. If you want to invest early, there are several reasons to avoid unnecessary debt:

1. Financial freedom

By avoiding unnecessary debt, young people can maintain their financial freedom. Debt, especially high-interest debt, can become a financial burden, limiting investment opportunities and compromising the ability to achieve financial goals.

2. Prevent bad spending habits

When you get used to living in debt, you can develop excessive and unwise spending habits. Avoiding unnecessary debt encourages responsible financial management, thus helping to accumulate money for future investments. As a young person, you need to learn to live within your means and resist the temptation of impulse buying. The sooner you can save and invest, the more you'll benefit from compound interest.

3. Reduce financial stress

Debt can lead to financial stress, which can negatively affect the ability to invest wisely. By avoiding unnecessary debt, a young person can reduce the stress associated with their financial situation, enabling them to focus on wiser, long-term investments.

4. Preserving financial flexibility

Unnecessary debt can limit an individual's financial flexibility. Without the burden of debt payments, one has more flexibility to invest in opportunities that arise, react to economic and financial changes, and adapt to new circumstances without being hampered by excessive financial obligations.

5. Encouraging savings accumulation

By avoiding unnecessary debt, young people can devote more of their income to savings and investment. The earlier you save, the more money you have to invest, which can lead to higher returns in the long term.

Get to work quickly

Finding a job, even a part-time one, to earn money will enable you to develop professional skills and build up a starting fund for future investments.

1. Accumulate start-up capital

The faster you earn money, the more opportunity you have to build up initial capital for your investments. A larger initial capital offers more investment opportunities and can lead to higher returns over the long term.

2. Start investing early

Entering the job market and earning money quickly allows a young person to start investing earlier in life. As mentioned earlier, investing early offers the advantage of the power of compound interest, which means your money has more time to grow and generate returns.

3. Learning the value of money

Working hard to earn money can help a young person understand the value of money and the effort required to earn it. This understanding can influence responsible financial habits and encourage investment rather than impulsive spending.

4. Acquire skills and experience

Working fast can offer opportunities to acquire skills and experience in the world of work. These skills can be valued on the job market and may lead to better-paid employment opportunities in the future, increasing the ability to invest further.

5. Financing your own investments

By earning money quickly, a young person can finance his or her own investments without depending entirely on outside financial resources such as relatives or a financial lending institution. This can foster a sense of financial independence and personal responsibility.

Taking risks

Don't be afraid of failure, because you still have time to recover. Taking risks can be an advantage for an 18-year-old for several reasons:

1. Available time

Younger people often have more time ahead of them to recoup any losses. This means they can afford to take risks and invest in potentially more profitable long-term opportunities, even if they are riskier in the short term.

2. Learning and experience

Taking risks allows young people to learn from experience. They can understand how financial markets work, develop their business intuition and acquire essential risk management skills, which are invaluable for their future financial education.

3. Financial flexibility

Young people can generally afford to take financial risks because of their less constrained financial situation. They have fewer family and financial responsibilities, which gives them more flexibility to explore risky investments.

4.Motivation and ambition

A bold attitude and a desire to succeed can motivate young people to take calculated risks. This can encourage them to seek out opportunities that have the potential to deliver significant returns, pushing them to work harder and achieve their financial goals.

5. Potential rewards

Risky investments often have a higher potential return. If a young person is prepared to take calculated risks, they can enjoy substantial returns, which can give them a significant financial advantage in the long term. This is true not only of investment, but also of entrepreneurship.

Invest whatever the amount and as soon as possible

Don't wait until you have a large sum of money to start investing. Whether it's 10, 50 or 100 dollars, start now. Small, regular investments can grow into a substantial portfolio over time.

1. The power of compound interest

Investing early means your money has more time to grow, thanks to compound interest. The interest you earn on your investments is reinvested and in turn generates interest. The earlier you invest, the more time your money has to multiply, which can lead to significant returns over the long term.

2. Amount is not as important as time

Even small amounts invested regularly can grow into large sums over the long term, thanks to compound interest. It's often more important to start investing with what you can afford, then gradually increase your investments as you earn more money.

3. Preparing for the future

Investing early can help you build an emergency fund, save for future education, finance the purchase of a home or prepare for retirement. The earlier you invest, the more likely you are to achieve these long-term financial goals.

4. Managing inflation

Inflation reduces the purchasing power of money over time. Investing can potentially help you beat inflation by earning returns that exceed its rate, thus preserving your purchasing power over the long term.

5. Risk tolerance

Young people often have a greater tolerance for risk, as they have time to recover from losses. This means they can afford to explore riskier investments with higher potential returns.

Continuous learning

Learning never ends. Investing money is good, but investing in your financial education is even better.

1. Constant market developments

Financial markets are constantly evolving as a result of various economic, political and technological factors. Ongoing training enables us to keep abreast of these developments, anticipate trends and make informed investment decisions.

2. Knowledge diversification

By continually educating himself, a young investor can diversify his knowledge in different financial fields such as stocks, bonds, real estate, cryptocurrencies, etc. This gives him the ability to diversify his investment portfolio, which is essential for reducing risk.

3. Risk management

Continuing education provides a better understanding of the different types of investment risk and the strategies for managing them. This includes understanding market, credit, interest rate and other risks, as well as methods for mitigating them.

4. In-depth analysis

Further training offers the opportunity to acquire in-depth analytical skills. This can include fundamental analysis of companies, technical analysis of price movements, and other methods of evaluating investments. In-depth analysis can help to make more informed decisions.

5. Prevent costly errors

In-depth knowledge of financial markets and investment principles can help prevent costly mistakes. A well-informed investor is less likely to succumb to common investment traps or make impulsive decisions.

6. Improving personal financial skills

By continually educating themselves, young investors also improve their personal financial skills, which can be applied to other aspects of their financial lives, such as budgeting, saving and retirement planning.


In short, it's essential to remember that investing requires patience, discipline and continuous learning. By following these recommendations and remaining dedicated to your financial growth, you are laying the foundations for a stable and prosperous financial life.

While the world of investing may seem intimidating, with its many numbers and specific vocabulary, it's important to understand that investing is accessible to everyone. Feel free to jump in, explore, learn, read and invest.

Disclaimer: this is not financial advice. website aims to inform readers about Blockchain, Cryptocurrencies and Web3. Any type of investment involves risk. Please do your own due diligence and research the articles and projects presented on the site. Be responsible and do not invest more than your goals or financial means allow. In this regard, read our page: Warning about virtual currencies.

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