5 Things to Do in Your 20s to Be Wealthy in Your 30s
Gaining wealth is not always about genius or incredible luck. One thing that sets rich people apart is that they don’t think about what they can buy, but how their money can make more money.
If you start early enough, this can work for you sooner. Here are five steps you can use to get there in the next decade, while you’re still young.
1. Lower Your Expenses
If you’re living paycheck to paycheck, you’re already in trouble. Find ways to cut back. Examine your grocery bills and look for ways to save money. Move to a place with lower rent.
Cut back on your electricity use. Spend the first couple of years just being, well, cheap. What you’ll save could surprise you.
2. Make More Money
Accumulating wealth is the idea. Find ways to get ahead at work, and find ways to make extra cash outside of work. Do you have a hobby or skill that could lead to profits online?
Take a part-time job, or work under the table every weekend for someone who could use the help. If you have a good plan, you should start your own business on the side.
3. Save
When you see the money start to pile up, it might be tempting to buy that new TV or computer as a personal reward. Resist the temptation. Have patience and remind yourself that you’ll be able to do better soon enough.
Think about moving your savings from a for-profit commercial bank to a non-profit credit union. Credit unions are there to benefit members, and normally charge lower fees and interest rates.
4. Invest
As you move onto the four or five-year mark, you should have enough to start looking for investments. If you’ve managed to grow and sustain your own business, invest in it.
Study financial trends. You could look at hard assets such as real estate, or more liquid stocks and bonds. You might want to find a financial advisor at this point, but by all means, keep your eyes open for new opportunities.
5. Reinvest!
Maybe you want to retire before you’re 40, and maybe you want to amass a million in cash. If early retirement is the goal, focus on investments like IRAs or safe stocks and bonds that continue generating passive income for years to come.
If you want wealth, keep rolling over your returns into more investments. The important thing is to practice diversity and balance in case one or more turn negative.
It is very possible to get rich while you’re still in your 30s, even starting with next to nothing. Patience, self-sacrifice, and discipline are three of the cornerstones. Being smart about where you put your money is the fourth.
Category: Career, Personal Growth
