6 Financial Advice to Follow in Your 20s That Will Change Your Life Forever

After all, you’ve just started to enter the workforce, have little responsibility and finally have a disposable income to call your own.

New clothings, sophisticated gadgets, expensive hangouts, trips and fun packed moments with friends are probably top of your current wish list.

There is an amazing feeling that pulses through you when are out with friends, and you can confidently pay their bills in addition to yours. You’re making the money, so why shouldn’t you be able to spend it?

You probably even feeling unbothered about putting aside any of the money you’re making for a rainy day, right?

Well, I will tell you for free that that line of thought is wrong on a lot of counts.

Even with all the freedom that youth provides, it can come with some significant financial consequences that can be crippling if you’re not careful.

As a young hustler that you are, you need to have a stash of money that you keep aside for the sole purpose of taking advantage of rare opportunities that would come your way, once in a while.

Now is the perfect time to start building your financial future, and you don’t need much money to do so.

The money moves you make at this stage could easily impact the rest of your life, so it’s important to make the best possible choices.

Here are seven financial steps to take in your 20s that will safeguard your future.

1. Stop spending so much money on socializing.

Like most millennials, I too have fallen victim to spending money for what I consider “the short term.” You know, things like going out to eat or going to shows, which for the time being is great, but as you get older, you realize this money is well spent other places. Plus, as millennials spend nearly 44 percent of their food budget on going out, cutting back can be an excellent way to save money.

2. Create a budget

Many people spend their 20s in a state of carefree bliss, but this is the decade to start planning financially for the rest of your life. It’s all too easy to get into bad financial habits and avoid taking critical look at how you spend your money.

Don’t be that person. Face your fear. Sit down with a pen and paper in hand. Look at where your money goes. Start tracking expenses, and then create a monthly budget that you can stick to.

It might seem impossible when your monthly income is pieced together with part-time work, internships, and other side hustles, but you can do it if you’re smart and creative with how you spend your money.

3. Demolish your debts

For many people, debt is an inescapable reality of their 20s, and 30s — particularly for those struggling to shuttle jobs, or barely even have one.

Many people in their 20s accumulate large debts in order to make ends meet while trying to find steady work. If you have debt in your 20s that you’re not trying to pay off as quickly as possible, it could become a lifelong burden. Now is the time to start sending any extra money you have toward paying off those debts.

4. Create an emergency fund

Bad things happen, often at the most unexpected times. Your car might need urgent repairs, you may suffer a sudden loss of income, or you could rack up an unforeseen medical bill. Without the funds in place to pay for those times when life throws you a curveball, you could find yourself in a tough situation.

Starting an emergency fund should be an absolute priority in your 20s and will enable you to take times like this in stride rather than knocking you completely off-course. Figure out how much you want in your emergency fund and start working toward it before disaster strikes, even if you can only set aside N5,000–N10,000 each month.

Your emergency fund will grow if you keep at it, and you’ll end up with a decent chunk of change to access when you need it most.

5. Give Real Estate investing a try

Many people make the mistake of believing that you need a huge amount of money before you start even considering investing, but this isn’t necessarily true. While you obviously require some free money to make any kind of worthwhile investment, it may be less than you think.

You can also start small and get in some solid practice by using a platform like Bersama, that invests your spare money for you in real estate projects and gives you sizable returns on your investment. With as little as a 100,000 today, you can begin your investment journey in real estate and earn as much as 15-20% as returns.

To know more about it and subsequently join them, click this link now.

6. Begin saving for retirement

Even though, as a 20-something, you might think your retirement is a lifetime away, it’s never too early to begin preparing for it. It’s easy to put off saving for retirement in the hope that you’ll earn more later and can start saving then. It’s even easier just to bury your head in the sand and try and forget about it entirely.

Even if you can only contribute a little, it’s best to get into the habit of contributing regularly as early as possible. You’ll be surprised at how much it grows over time, and you’ll thank your younger self in later years for doing it.