After the previous generations had their fun with the economy, young people now have to make do with what’s left of it. In truth, no situation is an ideal situation but you have to work with what you got. As much as complaining is justified, it’s time to take an initiative and take matters into your own hands as well. Being wealthy in your 20s or 30s seems next to impossible. After all, how can you make money if you’re in college and have to pay off tons of student loans?
The cliché statement “where there’s a will, there’s a way” sounds worn out by now but it doesn’t make it any less true. It comes down to what you consider wealthy and what you’re willing to do about it. Managing finances is difficult, there’s no denying it. However, if you’re willing to make an effort, you may end up enjoying a financial stability after all. That being said, here are a few secrets to becoming wealthy in your 20s and 30s.
Start thinking about money
Kids these days believe there’s enough time to do everything. It seems that time passes by slowly for them. Now that you’re young and energetic, you should spend time partying and getting wasted while leaving serious issues to be attended for when you’re older. That mindset will get you pretty much nowhere, except having drunken stories to boast about.
Now here’s the kicker, no one says you should stop having fun while you can and become all serious with a stick up your behind. However, you should start considering just how you’re going to ensure your financial stability and freedom. It’s painfully obvious that you need a job to generate income. Even a lousy minimal-wage job is a start. The money you make can grow if you know what you’re doing, and everyone has to start somewhere.
Cut your spending
One of the first steps toward being wealthy is being aware of the importance of money. Money isn’t meant only to be spent. In fact, it can become an investment that can yield more incomes and more profits. Modern trends dictate for youngsters to have fancy clothes, branded items, drink a $10 coffee from a fancy coffee shop and do all the things the “cool” kids are doing.
Consider how much you spend on non-essentials and how much can you save if you were just a bit more frugal. Each dollar you save can be left aside for later use. With enough money saved up, you can make investments that can be a life-changing decision and for the better. Moreover, consider whether what others think of you now matters more than where you’ll end up a few years from now.
Invest your money
People find inspiration everywhere they go. Investing in something can be a calculated risk but only if you’re willing to take that step. Some people invest in their own business; others invest in stock, bonds and shares. You can try investing in all of the above and more. For instance, the real estate market is one of the top concerns for younger generations nowadays. You end up renting out a crappy and too expensive apartment while dreaming about having your own place to call home.
Buying your own place does require a hefty investment but you don’t have to do everything in one day. Start small and invest in real estate you can make a profit from. Of course, you’ll have to find someone who can provide you with appropriate property investment advice first. Flipping real estate properties or making profits out of rental income can generate funds you can later use to settle down or invest further into something you want. Again, everyone has to start somewhere.
Think of your credit score
Being in your 20s and 30s means you’re a responsible adult or an adolescent now. That means you must take responsibility for your actions. When it comes to personal finances, many adults have difficulties determining priorities, let alone young people. Believe it or not, how you manage your personal finances reflects on a lot of things in your life and not just your life itself. Take your credit score for instance. It portrays your creditworthiness and how various lenders perceive you as an individual.
A credit score is determined by your ability to pay off your dues, such as bills, taxes, debt and so on. A bad credit score has more negative implications than being denied for a loan at a bank or being charged with insanely high-interest rates. It can affect your ability to find a job, start a business and even get a cell-phone contact, among other things. When faced with consequences, you’ll see that paying bills on time or avoiding maxing-out your credit cards isn’t as dull as it may seem.
Being wealthy in your 20s or 30s doesn’t have to be impossible. It will be difficult to get there but that shouldn’t discourage you from making an attempt regardless. In essence, it comes down to being aware of your finances and making an effort to change your life for the better. Now, whether you’re willing to do something about it or not is entirely up to you.
