I'm 23, How Should I Be Investing?
At a glance
- Length
- 5 min
- Channel
- The Ramsey Show Highlights
- Video from
- Mar 2021
- Rating
- ⭐⭐ Great video · 2/2
- Best for
- Young adults in their twenties starting to think seriously about money and investing
What A 23-Year-Old Should Know About Investing
In this episode, The Ramsey Show addresses a common question from younger adults: how to approach investing in your early twenties. The video walks through practical investment guidance tailored to someone just starting their financial journey, with an emphasis on building a solid foundation before diving into markets.
The host discusses the importance of sequencing your financial priorities and avoiding common mistakes that young investors make when they're eager to grow wealth quickly. The conversation covers what should come before investing, realistic expectations for your age group, and how to think about money strategically during your twenties.
Core Investment Principles For Your Twenties
- Foundation matters more than timing—getting your financial basics in order comes before aggressive investing
- Avoid debt before investing—clearing high-interest obligations should typically be a priority first
- Think long-term rather than short-term—your age is your biggest advantage in building wealth over decades
- Understand your risk tolerance—young investors can weather volatility, but that doesn't mean reckless choices are wise
- Use the Baby Steps framework as a roadmap—this structured approach helps you invest at the right stage of your financial life
Why Investment Strategy Matters Early In Your Career
Starting to think about investing at 23 puts you ahead of most people, but only if you're intentional about it. Your decisions now—what you prioritize, how you allocate money, and what mistakes you avoid—can compound significantly over four or five decades. The video emphasizes that investing isn't about picking hot stocks or timing the market; it's about developing habits and understanding your financial situation well enough to make decisions that align with your goals. Getting this right early means fewer financial stresses later and a clearer path to building real wealth.
Questions About Young Adult Investing Answered
Should I start investing if I still have consumer debt?
The video suggests that high-interest debt (credit cards, personal loans) should generally be paid off before you focus heavily on investing. Once you've handled emergency savings and eliminated costly debt, investing becomes a more sensible next step.
How much money do I need to begin investing?
You don't need a large lump sum. The video emphasizes consistency and starting with what you can afford, even small amounts. Regular contributions over time matter far more than having a big initial investment.
What type of investments are appropriate at 23?
The show discusses age-appropriate investment vehicles, typically focusing on diversified options like retirement accounts rather than individual stock picking. The specific recommendations align with Ramsey's philosophy of steady, proven approaches.
How do I know if I'm on track financially for my age?
The video references having a clear plan aligned with your income, expenses, and goals. There's no single "right" number for your age—it's about moving intentionally through a sequence of financial priorities rather than comparing yourself to others.
Should I be worried about missing out on investment opportunities?
Fear of missing out often leads young investors to rush or take unnecessary risks. The video reinforces that time is on your side; consistency and avoiding major mistakes typically matter more than perfectly timing every market move.
Gear & products featured here
- The Total Money Makeover by Dave Ramsey
- Baby Steps Millionaires by Dave Ramsey
- 2025 Ramsey Goal Planner
As an Amazon Associate we earn from qualifying purchases.
Key Terms
- Baby Steps
- A structured framework for managing money in a specific order, starting with debt elimination and building toward investing and wealth building.
- Emergency fund
- Money set aside to cover unexpected expenses, typically three to six months of living costs, that you don't invest or spend on regular expenses.
- Diversified investments
- Spreading your money across different types of assets or funds so that poor performance in one area doesn't harm your entire portfolio.
- High-interest debt
- Borrowed money with a high cost, such as credit card balances, that costs you significantly more money over time if left unpaid.
Sources: Baby Steps · Emergency fund · Diversified investments · High-interest debt — definitions cross-referenced with Wikipedia
Video by The Ramsey Show Highlights on YouTube. If you enjoyed it, please subscribe to their channel and show your support for the great video.
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