I know you’re probably thinking, “I’m in my 20’s, I’m still young”, “I’m allowed to make mistakes”, “there’s still a lot of time”. All these statements might be true for other aspects of your life but definitely not for your finances. The truth is, the earlier you start taking your finances seriously, the better it turns out. Although there are many exceptions, a lot of successful people in the world today started taking their finances seriously in their 20’s or even earlier.
Personally, I wish I knew more about the right financial habits when I was much younger, I would’ve achieved more financial goals than I currently have. If you’re still in your 20’s, congratulations, you’re at the right place at the right time. I have listed 10 tips that will set you on a path to success if they are taken seriously.
- Establish Your Priorities: Setting the right priorities early in life will ensure that you start your journey to financial freedom on the right track. You will have to decide if your goal is to look rich or actually BE rich and this depends on what you choose to spend your money on. Your choices reflect your priorities, therefore choose wisely.
- Acquire a Marketable Skill: In Nigeria, most employed graduates didn’t get jobs because of their university degrees but because they have skills that are relevant in the Workplace. As a matter of fact, many people with some of the highest paying jobs do not have university degrees. This goes to show the importance of acquiring marketable skills.
- Have A Side Hustle: It is practically impossible to attain a level of wealth without having multiple streams of income. Nowadays, even survival is hard without a side hustle. There are different side hustle ideas to choose from, you can check out some ideas in my previous post.
- Start Building A Network: You probably might have heard this saying “Your Network is your Net worth”. This is absolutely true because almost every opportunity you get in life will come from the people you know, therefore you need to seize every chance you get to meet people. Attend seminars and workshops, take advantage of internship programs and join professional organizations or reputable social clubs.
- Start Living Within A Budget: This is undeniably the most important habit that would shape your financial future. A budget is simply a spending plan, and you remember what they say about people who fail to plan right? So, in order to avoid financial failure, create a budget and learn to live by it.
- Make Savings A Habit: In your early 20’s, you may not be earning a lot of money, so it’s easy to talk yourself out of saving. However, if you do not start the habit of saving now, you’ll surely find it difficult to save in the future. As your earning power increases, so does your taste, which makes it even more difficult to save if you do not have the habit. On Crowdyvest, you can start saving with as little as N1000 on our FLEX savings plan, so what is your excuse?
- Avoid making Big purchases on Credit. Save up instead: When you buy things on credit, you’ll end up paying much more than the actual value because of high-interest rates. It may be convenient at the time but will hurt you financially in the long run. So instead of “Buy now, pay later”, I’ll recommend “Save now, Buy Later”.
- Research Different Investment Opportunities: Learning about high and low-risk, short and long-term investment opportunities will help you start building wealth early. I wish someone had told me about investment in my early 20’s. I used to think that investment was exclusive to people who had made over a million Naira (how ignorant was I? lol). With Crowdyvest, you can start investing with as little as N20,000 and earn up to 21% returns.
- Open a retirement account: Retirement? Yes, you read right, Retirement! I know you’re just starting life but when you start saving for your retirement in your 20’s, you get a head start compared to people who start saving in their 30s. This translates to more money for you to enjoy when you eventually retire.
- Improve your cooking skills: This might seem trivial but having the ability to cook will help you save a lot of money. Food is responsible for a large chunk of our expenses therefore, the more you save on food, the more money you have to save and invest thereby growing your finances. So if you didn’t have any reason to learn how to cook, now you do.