When you hit your 20s, it’s officially time to be heading out your own. Here are the top steps to becoming financially independent in your 20s…
When you hit your twenties you may be studying at university, have already started work, or be travelling the world seeing all the sights before you settle down. When you’re in any of these scenarios, the thought of achieving financial independence at such a young age can feel well out of reach. However, it is indeed possible.
By taking a few steps in your life early on, reaching your financial goals may be easier than you imagine. Here are a few things that you can do to help; after all, who wouldn’t like to be retired by the time they’re 40?
Budget budget budget
Whether you’re a spreadsheet person or someone who prefers an app, get your current money situation in check with a budget. Create a realistic one to make sure your money is being spent wisely. If you’re frivolously spending £2.60 a day on your regular latte, forget about it. Make one yourself at home in a reusable cup and pop that money to one side instead. You’d be surprised how quick a cup of coffee five times a week adds up!
Being in the know and figuring out where your money is going each week and month is super important on your quest to becoming financially independent.
Save save save
We all find it far too easy to spend our hard-earned money. That dress you saw in the shop window? The amazing Amazon deal that’s far too good not to get? We know. We know. But, with a view of becoming more financially independent, these little or big unnecessary purchases need to take a back seat.
That money you’d spend on a coffee or your lunch at work, why not bank it into a savings account instead and make your favourite hot drink and lunch at home. Not only will you be savings pennies, you’ll also be more than likely eating better for your body too!
Sharing is caring
Stocks and shares are that illusive thing that we all want to do, but none of us are sure how to go about it. Investing is a minefield if you’ve never been exposed to it, so consider taking professional advice on how you can build a portfolio.
Remember, investing is for the long term and there will be highs and lows. But, if you get it right, it can be one of the most lucrative things you can do to help towards truly becoming financially independent.
Money can often be a taboo subject that no one wants to discuss openly. By getting a few things in place early on, you can put yourself in the best possible financial position at lot sooner than you think.
