The 20s are a very crucial period for every human being in all areas of life. These are the years of early adulthood when the teenager gradually transforms into a fully grown man or woman. These changes affects each person in many ways including in issues of finance. Unfortunately, it is often the most abused stage as well.
Rather than saving, investing, and building a career, many young adults instead use these years to rack up debt and enjoy a lifestyle beyond their means. While there are many better things to pay attention to, here are experts’ advice to make your lifestyle better:
First and foremost you need to spend less than you earn: The most important financial habit that a young person can learn is to spend less money than he or she earns. This is the most fundamental habit of one’s financial life. Without mastering this concept, little else is possible.
In order to master this principle quickly, make sure your fixed expenses such as rent are not too high. Then, begin to find ways to keep your spending (e.g., entertainment, dinner out, clothes, etc.) in check. Make whatever adjustments are necessary in order to make sure that you spend less than you earn every single month.
Another principle to adopt is to become a regular saver: Like the previous principle, try to make regular saving a habit. The amount of money you put away is less important than the consistency that you save. Set-up your savings account to auto transfer money each month from your checking account into savings, even if it’s only N5,000 a month depends on your monthly income. The habit you establish is the significant part!
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As you continue to adjust your budget and lifestyle, and hopefully earn more money over the years, try to increase the amount that you save each month. Rather than letting your lifestyle inflates as the years go by, try increasing your saving!
You also need to invest your money. After you mastered the habit of regular savings, it’s time to become a regular investor. Get a plan in place. If you have access to such a plan, it’s a great option for you because you can automatically deduct money from your paycheques. If you don’t, then you have to manually move money from your savings to retirement accounts.
Experts also say build your skill and set focusing now more towards your career, you need to continue to develop your skill set. People learn more in their first few years in the working world than they do in four years in school. Use the opportunities at work to develop skills that will benefit you both today and years to come.
Take on unique challenges so that you can gain the experience and the skills they offer. The more experience and range of skills that you develop over time, the more opportunities will be available for you as you progress through your career. Subsequently, you need to build your network. Just as important as your skills, the relationships that you develop will also increase your opportunities rapidly. Networking, especially early in your career can be the difference between a fast track career and a stagnant career.
Get to know people in your company, in your industry, and even in other industries. You really never know when a certain relationship will pay off (or if ever). You may find yourself looking to relocate or switch industries in a few years, and these relationships will be excellent resources to help you reach your goal.
TIAMIYU ADIO ISMAIL
