How to Start Investing in Your 20s (Even If You’re Broke)

Learn how to start investing in your 20s—even with little money. This beginner-friendly guide covers where to invest, how to avoid mistakes, and the best investing strategies for long-term wealth.

Starting to invest in your 20s might feel impossible—especially if you’re juggling low income, student loans, or uncertain career paths. But here’s the truth:

The earlier you start investing, the easier it is to build wealth.

In this guide, you’ll learn how to start investing in your 20s, even if you're broke or completely new to it. We’ll cover:

• Why your 20s are the best time to invest
• How compound interest works
• Where to invest your first €100, €500, or €1,000
• Mistakes to avoid
• How to build a smart, simple investing strategy

Why You Should Start Investing in Your 20s

Most people don’t start investing until their 30s or 40s—and that delay can cost them tens of thousands of euros.

If you invest €100/month starting at age 22 and earn 8% annually, you could have around €120,000 by age 50. If you wait until age 32 to start? You’d only have around €50,000.

That’s the power of compound interest—your money earns money, and that money earns even more.

Other benefits of starting early:

• You build good money habits
• You have time to recover from mistakes
• Your risk tolerance is higher
• You need less capital to reach your goals

Step 1: Build a Financial Base

Before investing, make sure your finances are stable.

Ask yourself:

• Do I have an emergency fund of at least €500–€1,000?
• Have I paid off high-interest debt like credit cards?
• Do I have a stable income?

If the answer to these is yes (or close), you’re ready to start investing.

Step 2: Pick an Investing Platform

To start investing, you’ll need to open an account with a broker or investing app.

Popular options across Europe include:

• Degiro – Low-cost, great for ETFs
• Trade Republic – Mobile-friendly, 1€ commission trades
• Revolut – Good for starting small, simple UI
• eToro – Great for beginners, also supports crypto
• Kraken – If you want to start with Bitcoin or Ethereum

Sign up, verify your identity, and fund your account.

Step 3: Choose What to Invest In

You don’t need to pick stocks like Warren Buffett.

Start with these three options:

1. Index Funds and ETFs

These track a group of stocks like the S&P 500 or global markets. They’re diversified, low-risk, and great for beginners.

Look for funds like:

• S&P 500 ETF (e.g. VUSA)
• MSCI World ETF (e.g. IWDA)
• European ETFs (e.g. Stoxx 600)

2. Blue-Chip Stocks

If you want to own individual companies, start with big, stable names like Apple, Microsoft, or Unilever. But don’t put all your money into one stock.

3. Crypto (Optional)

Bitcoin and Ethereum are popular options, but only invest what you’re willing to lose. Crypto is high-risk and volatile—limit it to 5–10% of your portfolio.

Step 4: Start With What You Can

You don’t need thousands to begin.

Start with:

• €10 per week
• €25 every two weeks
• €100 per month

It’s more important to build the habit than the amount.

Step 5: Automate Your Investing

Automating your investing removes emotion and excuses. Most platforms let you:

• Set up recurring deposits from your bank
• Automatically invest into your chosen ETFs or funds
• Reinvest dividends

Once set up, you won’t need to think about it every month.

Step 6: Play the Long Game

Don’t try to get rich overnight. The most successful investors hold their investments for 5, 10, even 30+ years.

Ignore:

• Daily price swings
• TikTok or Reddit hype
• “Buy this NOW!” signals

Stick to your plan. Review once a year. Stay patient.

Mistakes to Avoid

Here are common errors many 20-somethings make:

• Investing before building an emergency fund
• Going all-in on crypto or meme coins
• Panic selling during market dips
• Trying to day trade with no experience
• Following influencers instead of doing research

Do You Need a Lot of Money?

No. Start with what you have.

If you can save €50/month, you’re ahead of most people. Over time, as your income grows, increase your contributions.

What About Taxes?

In Croatia and many EU countries:

• Capital gains (profits) on investments held under 2 years are taxed at 10% + surtax
• Investments held over 2 years are tax-free
• Dividends may also be taxed
• Crypto is treated similarly, depending on the holding time and platform used

Always:

• Save records of buys/sells
• Track income from dividends
• Declare taxes yearly (e.g., via JOPPD form in Croatia)

Smart Strategy for Your 20s

Here’s a simple approach:

• 70%: Global or S&P 500 ETF (e.g. IWDA or VUSA)
• 20%: Emerging markets or Europe ETF
• 10%: Crypto or growth stocks (optional)

Review once per year. Reinvest dividends. Keep it simple.

FAQs

Can I invest as a student?

Yes. Start small—even €10/month builds the habit. Some student-friendly platforms have no minimum deposit.

Should I focus on paying off debt or investing?

If the debt interest rate is over 6–8%, focus on paying it off first. But you can still invest small amounts while reducing low-interest debt.

What if I lose money?

All investing involves risk. But over the long term, markets trend up. If you’re diversified and invest consistently, you’re likely to gain over time.

Final Thoughts

Your 20s are your secret weapon.

You don’t need to be perfect. You just need to start.

€100 invested at 22 is worth more than €1,000 invested at 42.

Start now. Automate it. Ignore the noise. And watch your money grow while you live your life.

Want more investing and money tips?

Visit Trustixo.com for weekly guides on saving, investing, crypto, and building wealth in your 20s.

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#investing #financialfreedom #moneytips #etfs #trustixo #croatiainvesting #investinyour20s