What I Wish I Knew about Investing at 22

Introduction

If you're in your early 20s, investing might feel like something future-you will worry about. But here's the truth: your 20s are one of the most powerful times to start. Not because you have loads of cash, but because you have something far more valuable - time.

This blog reflects on the key investing lessons most people wish they learned earlier. It’s a candid guide for anyone just starting out in 2025.

Lesson 1: Starting Small Is Still Starting

You don’t need to wait until you’ve saved thousands.Thanks to fractional investing and zero-commission trading platforms now common in Australia, including inaam, getting started in investing is easier than ever. You can begin with as little as $20.

The key isn’t the amount - it’s the habit. Regular, small investments compound over time, turning spare change into serious money. That’s the power of compound interest.

Lesson 2: Risk Isn’t Always a Bad Word

At 22, time is on your side. That means you can take on more risk than someone approaching retirement. While “risk” sounds scary, in investing it often just means volatility, not necessarily losses.

The way to manage that volatility? Diversification. Which is an investing strategy where you spread your money across a range of different assets (like shares, bonds, property, or even different industries and countries rather than putting it all into one. By spreading your investments across different assets, you reduce the chance of one bad bet derailing your progress. MoneySmart’s guide to diversification is a great place to start.

Taking on some volatility in your 20s gives you the chance to capture higher long-term returns, because you’ve got the time to ride out the bumps.

Lesson 3: Understand Where Your Money Goes

Your money isn’t sitting comfortably, its building the world. Every dollar invested is funding something, whether that’s fossil fuels, renewable energy, fast fashion, or healthcare.

Most funds publish their holdings and impact reports. By learning how to read a fund’s holdings and impact metrics, you can make informed choices about where your money works. For example, the Responsible Investment Association Australasia (RIAA) benchmarks which funds are truly responsible. Learn here how to read a fund report.

Lesson 4: Your Values Belong in Your Portfolio

There’s a myth that investing is just about chasing returns, and that ethics don’t matter. But you don’t have to check your values at the door when you put your money to work. Ethical and impact investing has exploded in recent years, giving you more options than ever to support causes you care about like clean energy, gender equality, or affordable housing.

Investments in companies like Canadian Solar or Patagonia show that you can back businesses making a difference and earn strong returns.

Investing isn’t just about growing your net worth… it’s about helping shape the future you want to live in.

Avoid the Hype

From crypto crashes to TikTok investing tips, there’s a lot of noise. One of the best things you can do at 22 is learn to think long-term.

The problem is, chasing the hype often leads to big losses and disappointment. Instead of chasing the next big thing, focus on a simple, diversified, and values-aligned strategy. It’s less exciting, but far more effective.

The best move you can make at 22? Think long-term. Instead of trying to outsmart the market, focus on a simple, diversified, values-aligned strategy and stick to it. History shows that “boring” investments (like index funds) often outperform the flashy picks over time. Here is an example of the S&P 500 chart and the results it has made long-term.

Lesson 6: Ask Questions, Always

No one expects you to know everything about investing, especially not at 22. The smartest investors are the ones who keep asking questions, challenging what doesn’t make sense, and building their knowledge step by step.

There are free, credible resources to start with: Ask questions, challenge what doesn’t make sense, and build your literacy one step at a time. For more information, feel free to email hello@inaam.me.

How inaam Helps

At 22, your biggest advantage isn’t your salary or savings…it’s time. inaam was built to support young people in exactly this stage of life. Whether you’re investing $20 or $500, the platform curates custom impact portfolios based on your values. It also shows you exactly how your investments are performing both financially and in terms of social or environmental impact. Beyond investing, inaam is designed to teach you the fundamentals of building wealth and making smart financial decisions, so you grow as an investor over time. Our goal is to give you the tools, knowledge, and opportunities to build long-term, sustainable returns while aligning your money with what matters most to you

Final Thought

The earlier you start investing, the more freedom you give your future self. Not just financial freedom, but the freedom to shape the world you want to live in.

At 22, you don’t need to know everything. You just need to begin.

Note: This is general information, not financial advice. Always do your own research or speak to a licensed advisor before investing.