10  financial milestones you should achieve in your 20’s

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The habits you gain and acquire during your 20’s lay the blueprint for the rest of your life. Therefore if you have bad money habits when you are young they will be hard to change over time. So here are 10 milestones to use as a guide that will help you stay on track and achieve financial independence down the line.
  • Save your money. Whenever you get some money ,if it be through  the means of an allowance or  a salary, make it your prerogative to save money. The golden rule is to save 10% of everything you earn.

  • Have a financial budget. This does not have to be anything complicated. All you need is a simple table that will guide you on how to use your money responsibly.

  • Track your spending. Every time you spend some money, you should keep record of that expenditure. Tracking your spending will allow you to see where you can make improvements and adjust your spending habits to save more money and use your money more efficiently . The good thing is that in this digital era there are so many Apps that can do this for you automatically.

  • Invest a portion of your savings on a regular basis. You should start investing a soon as possible. Investments started in your 20’s can easily turn into a deposit towards your dream house in your 30’s.

  • Start a business in your 20’s. When you start a business when you are young, you have nothing to loose, but everything to gain. It will give you experience and the opportunity to develop your dream business, all while the pressures of adulthood have not yet caught up with you entirely.

  • Never splurge, not even your first pay cheque. People who blow their first pay cheque have a 60% chance of living a life filled with financial misfortune.

  • Be frugal when it comes to accommodation. Do not feel the pressure when you are young to waste a lot of money on a fancy apartment. Simple is best, because all the money you save is money you can put to work. No more than 25% of your gross income should go towards accommodation.

  • Always remember cars are a quick way to burn cash. In similar tune with the point made previously, don’t waste money on expensive cars. Cars are not an investment, especially if you buy them on credit. Cars depreciate in value and they do not generate money, so at all times keep car expenses to an all time low.

  • Do more than one thing! Never stop learning and never stop looking for other ways to generate income. It is the norm that once someone gets a job they focus on that job and that  job alone. It is important that you look for other streams of income, if it is throw a side business, or through investments, it will help you be prepared for even better opportunities down the line.

  • Don’t take on bad debts. The best way to avoid debt is to live within  your means. If you find yourself taking out debts to buy a television or clothes or unnecessary items you can definitely  be assured that you are heading for disaster.

“A simple fact that is hard to learn is that the time to save money is when you have some.” —Joe Moore

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