When you’re in your 20s, saving money is not a top priority. This is because this period in your life comes with a lot of firsts. First job, payslip, first apartment, first car… And, even if you grew up learning about financial responsibility, it can get overwhelming. However, if start to exercise managing money, saving, investing, the stock market and general day-to-day budgeting now, your financial future will definitely look brighter. Let’s take a closer look…
Four important things you should know about money in your 20s
1. Invest 10% of your salary
When you get your first salary, you spend it celebrating, or use it to spoil yourself. However, if you can invest 10% of your salary from the first one, you’ll probably have the discipline to invest every month. Don’t you wish someone had told you this when you were younger? Just imagine how much money you could be having in the bank right now? Well, it’s not too late. It’s time to re-prioritize and get investing.
2. You don’t need a full-time job to make money
After school, most young people go straight to university. Don’t get me wrong, this is a good thing. But, with a struggling economy and the job market not looking so great, you have to look at other opportunities to make money even while studying. You can start a business while was studying, and when you’re done, you won’t find yourself in the unemployed category. Again, it’s not too late. It’s time to get busy with that business idea and start creating a steady income for life.
3. Don’t get trapped in debt
There’s always the temptation to buy things you don’t need with money you don’t have especially in your twenties, when you start earning a steady income. And guess what? Banks are waiting to give you credit. Sorry to say, but it’s not because they want to help you buy the things you want. All they want is for you to pay interest for the rest of your life. They know how difficult it is to get out of debt. So, if you’re in your twenties, stay away from credit cards and live according to your means.
4. Don’t be afraid of risk
Yes, risk doesn’t always generate reward. However, there are situations in which taking a risk can increase the probability and size of a reward. What’s more, when you’re in your twenties, you can handle a little more investment risk than later in life when you have bigger responsibilities. A good option is investing in penny shares. So, before you start to play it safe, remember the saying “the bigger the risk, the bigger the reward.”
If you care about someone that’s just started working and earning money, I think you should let them read this article. Share this article and give someone a better opportunity at life.