Happy Sunday,

Angelo here! Welcome to New Money, where we go over weekly tips to help you build your wealth, one dollar at a time.

Today’s edition:

• The 5 money milestones to hit in your 20s

• Tesla car prices down, home prices up, and tariff announcements (again)

• The tiny habits that made me rich

Read time: 3 min 20 seconds

💰 Wealth Tip of the Week

This week, we're tackling a question I get all the time: 

What are the major money milestones you should aim for in your 20s to achieve financial freedom?

I'm still in my twenties, obviously, so I’m working on this with you, but I've been fortunate enough to hit many of these financial checkpoints, from paying off debt to aggressively investing (I'm now $500k+ invested!)

And I want the same for you.

If you're in your 20s, you have a massive advantage: time. 

Your 20s are the most crucial time for setting up your financial systems, accumulating some money, and letting compound interest do its thing.

The longer you’re in the game, the better your results will be, so let’s dive in to get you a solid financial foundation so you can make the most of this decade.

The Money Milestones to Hit in Your 20s

1. Pay Off High-Interest Debt (or Stay Out of It)

The first step in your money journey is to start paying off any debt. Think credit card debt, student loans (the average student loan debt in America is $39,000), car loans, etc.

When you're starting out, it can feel tough to balance the need to save, invest, pay off debt, and pay your bills.

But a good rule of thumb is to lock in on high-interest debt that has an interest rate above the market rate of return (AKA anything above 6–8%).

Debt, especially credit card debt (where you’re paying an average of 22.25% in interest), is the most destructive force against your finances. Since your interest rate is greater than the rate of return you’d make investing in the stock market, prioritize these high-interest debts before you move on to investing.

Once you’ve paid off any high-interest debt, you can keep paying off any low-interest debt (interest rates below 6–8%) while you progress through the next steps.

2. Establish Income and Gain Experience

Your 20s are the time to figure out the sweet spot between what you love to do and what the market will pay for.

The goal is to build a high-earning career based on skills you enjoy using.

And make sure you earn to your full potential. Don't rely on annual 2—3% raises. Be proactive in your income growth:

• Negotiate your salary every time you get a new offer.

• Switch jobs after a few years if you’re being underpaid at your current job. It's often the fastest way to get a substantial salary bump.

• Use side hustles (check out my YouTube video on the best ones) to supplement your main income and accelerate debt repayment or investment growth.

3. Building Credit & Good Habits

Here is where you truly begin to dig into your finances and set yourself up for success later on.

We’re setting up healthy financial habits like paying off your credit card balance each month, building your credit score, and practicing mindful spending.

• Avoid credit card debt: Credit cards are amazing tools if you use them right. I use my credit card points all the time to book trips basically for free using points. The key here is to always pay off your balance in full. Remember, credit card interest rates are extremely high and can single-handedly destroy your financial foundation. Pay them off in full every month, and that will lead you to the next habit.

• Build your credit score: Having a great credit score can be incredibly valuable. For example, on a $400,000 mortgage, a difference of just 0.5% in your interest rate can save you over $44,000 in interest over the life of the loan. The best way to build up your credit score is to always pay your bills on time and keep your credit utilization under 30% (ideally 10%) if you can. 

• Spend intentionally: The more money you save when you're young, the bigger the base for compounding wealth. For example, saving $750 a month instead of $500 a month in your 20s can result in over $443,000 more by retirement. So the next time you’re thinking about a purchase, ask yourself if it’s truly serving your long-term goals or if it will set you back from financial freedom.

4. Build a Budget

To meet your goals, you’ll need a financial map.

Start by combing through your bank and credit card statements to get an idea of your spending. 

Then your next step is to break it down to align with your goals. A good breakdown (and what I personally started my budget with) is the 70-20-10 rule.

• 70% expenses: 70% of your income goes to your expenses. Think rent, utilities, groceries, plus your more enjoyable spends like dining out or taking a weekend trip.

• 20% investing in yourself: 20% should go toward making your money work for you. This means investing in the stock market, learning profitable skills, etc. 

• 10% fail-safe fund: 10% goes toward your emergency fund for when sh*t hits the fan. Instead of panicking when your car breaks down or you have an unexpected medical bill, you’ll have money set aside (preferably in a high-yield savings account) that you can pull from to keep you afloat and on track.

  

5. Start Investing for the Future

Now it’s really time to lock in and put your money to work. 

• Retirement accounts (Roth IRA & 401k): Open a Roth IRA (tax-free withdrawals in retirement) and contribute to your employer's 401k, especially if they offer a match (that's free money!).

• Be a dumb investor (Index Funds): For most people, buying an index fund (like Vanguard's S&P 500 ETF) is all you need. An index fund automatically provides diversification across the top US companies.

• Time in the market is crucial: The probability of losing money in the stock market declines to just 6% if you stay invested for at least 10 years. Buy, hold, and let compounding do the heavy lifting for 30–40 years.

That was a lot, I know.

But remember this: The habits and systems you build now—not the amount of money you have—will determine your wealth decades from today.

Don't be intimidated by the five milestones above. You don't have to hit them all at once. 

They take time, consistency, and discipline, but the result is a life where your money works for you.

Cheers to your financial success.

📉 Market Recap

Check out some of the biggest stories shaking up money, markets, and momentum this week.

• Tesla releases cheaper vehicles, so you could own one for less

• Are investors buying up all the homes on the market?

• Expect delays when flying due to the continued government shutdown

• Trump announces tariffs (again) and the market tumbles

👀 In Case You Missed It

We talked about the financial blueprint to set you up for success in your 20s, but what are the small habits working behind the scenes to make it all happen? I’m spilling my secrets here 👇

See y’all next week 🫡

- Angelo Castillo

Disclaimer: This is not financial advice or investment recommendations. The content is for informational purposes only, and it should not be considered as legal, tax, investment, financial, or other advice.