The 5 Best Money Decisions That Built My Net Worth in My 20s

Some of them will surprise you!

Author

Michela Allocca
November 11, 2025

In partnership with

👉🏻 The TL;DR (5 minute read):

Your 20s aren’t about getting everything right - they’re about setting yourself up to have more options and make your life easier as you get older. These are the five choices that changed my financial trajectory and helped me hit a million-dollar net worth before 30.

🚨 There are only 2 months left of 2025! Don’t let your goals get away from you! Check out the Personal Finance Dashboard or the Basic Budgeting Template! 

MONEY
The 5 Decisions That Built My Net Worth in My 20s

When I think back on my 20s, I don’t remember one big “aha” moment that changed my financial trajectory. Instead, it was all of the small choices and habits that I’ve stuck to for so many years. Consistency, curiosity, and discipline - mixed with a lot of uncertainty and trial and error.

The truth is, most of what I did in my 20s wasn’t glamorous. I lived with roommates, I said no to expensive vacation, I worked nights and weekends on projects no one understood at the time (aka BYB). But all of those small sacrifices have bought me freedom later - the kind of freedom that allows me to design my own lifestyle, take risks, and choose work that feels meaningful.

If you’re in your 20s right now and feel behind or unsure what to prioritize, here are five decisions that shaped my entire financial trajectory - and that I would make again, every time.

1. I kept my rent low - even when I could afford more.

When I graduated college, I lived in a tiny apartment with multiple roommates. We had no AC, no dishwasher, no laundry. But my rent was $900 a month - unheard of in the city.

Even as I began to progress throughout my career and see true income growth from Break Your Budget, I continued to live with roommates to keep my rent low.

Most people upgrade their lifestyle as their income grows - I intentionally chose not to. Keeping my rent low meant my savings rate stayed high. I was able to invest, pay off all my student loans, and ultimately build real flexibility into my life.

It wasn’t glamorous, but it bought me time and peace of mind - two things that matter way more than a fancy apartment (although I will say now at 30 - I love living in a nice apartment!! It was worth the wait).

2. I started a side hustle - and treated it like a business from the start.

In my mid-20s, I was working full-time in corporate finance but started creating content online on the side. I never expected it to turn into what it has today, but I took it seriously straight from the start because I knew it could be an avenue to earn more money.

I didn’t quit my job overnight - it took almost 3 years of working on BYB on the side before I could take it full-time. I built slowly, learned new skills, and gave myself financial runway before taking the leap.

And now, I’ve been able to 3-4x my earnings year-over-year!

3. I delayed buying a car - and paid cash later

I lived without a car for years, even when it was inconvenient. When I finally did buy one, I paid cash. That decision saved me tens of thousands in interest, insurance, and monthly payments.

Remember, your monthly car costs are so much more than just a car payment - it’s insurance, gas, and maintenance. Don’t buy more car than you can truly afford!

4. I monetized the skills I learned at work

Every job teaches you something valuable - even the ones you don’t love.
For me, it was Excel and financial modeling. I learned these at the job where I got paid the least! But those same skills became the foundation for my digital products and templates, which have earned me over $1M since the inception of BYB.

If you want to earn more, start by looking at what people already ask you for help with. That’s usually where your next income stream is hiding.

5. I moved cities to expand my perspective

When I left Boston for LA, it wasn’t (only) about weather - it was about expanding my mindset. I wanted to be surrounded by people building creative businesses and living differently, so I could see what was possible for me when I stepped outside of my little bubble.

Environment matters more than motivation. When you see people around you earning, creating, and taking risks, you start to believe you can, too.

Sometimes the most growth comes from a change of scenery!

The Takeaway:

Most of these decisions weren’t flashy - they were quiet, consistent, and a little uncomfortable. Your 20s don’t need to be perfect. They just need to be intentional!

If you enjoyed this newsletter, join me on your money review in this weeks youtube video!

💡 Ready to take your financial power back in 2026? Start by tracking your numbers in a tool like the Personal Finance Dashboard!

Invest right from your couch

Have you always been kind of interested in investing but found it too intimidating (or just plain boring)? Yeah, we get it. Luckily, today’s brokers are a little less Wall Street and much more accessible. Online stockbrokers provide a much more user-friendly experience to buy and sell stocks—right from your couch. Money.com put together a list of the Best Online Stock Brokers to help you open your first account. Check it out!

WEEKLY RECOMMENDATION

Why Lower Interest Rates Aren’t Enough to Make Housing Affordable: There’s been a lot of conversation lately about how interest rate cuts are going to make the housing market go crazy again - and I (personally) don’t think this is going to be true. The issue is that inventory is still low - largely a result of buyers who financed at low rates who can’t afford to move. Plus, rising maintenence and insurance costs are squeezing buyers too tight. This article lays out the problems very nicely! (btw - HIGHLY recommend subscribing to WSJ. I really enjoy reading it!)

RESOURCES
What’s Happening This Week at Break Your Budget

LOOKING FOR MORE?
Check out ALL of my Money & Career Resources!

xoxo,

Michela