If you’ve come here looking to get rich quick, you should know that nobody becomes wealthy overnight, BUT what’s here are finance tips for young adults.
I know it can seem very easy when you are looking from the outside in, but it is easier said than done when life overwhelms you and everything that seemed so simple is now impossible.
Those “overnight successes” you see are typically the outcome of a long period of focused effort. The good news is that there are no tricks to accumulating this success!
I hope that hasn’t scared you away! If not, then I hope you enjoy these finance tips and start implementing them so you can guarantee your wealth.
1. Invest your money in your early 20s.
By the time you get to 25, you will beat yourself up with the question, “Why did I not invest in this?”
Even if you start investing your money earlier than your 20’s, THE EARLIER THE BETTER! I only say early 20s, as you want to make sure you still get to have fun with your money and have no regrets!
Check out THIS ARTICLE by the college investor to find out the top 5 investing apps of 2023!
2. Find your dream career
If you have a job that you don’t enjoy doing, then it will make it hard to progress, whether it’s working over time or moving up the ladder. If you don’t enjoy it, then you won’t even come across the opportunities because you don’t see them as opportunities.
Also, who wouldn’t want to put their all into a career that they are actually passionate about and that can create financial freedom?
A dream career could look very different to everyone. If you are struggling and don’t know where to start or have no idea what you want your dream career to be, just start a bunch of different side hustles and see which one you prefer, then make it full time!
3. Save, save, save
Save with a goal in mind, and no, I don’t mean save £500 for a holiday and then spend it all. First, come up with meaningful goals, for example, a mortgage, a car, investments, etc.
Also, I love to live by jay-z’s motto, “If you can’t buy it twice, you can’t afford it.”
High yield savings accounts are also really helpful! Check out this blog post by the college investor on the best high yield savings accounts.
4. Stay away from debt (remember this is finance tips for young adults)
Debt is one of those things that, once you get caught in the web, you have a very hard time seeing the light at the end of the tunnel, and it seems IMPOSSIBLE.
Having debt stops you from being financially secure, so my opinion is to make sure you avoid debt by not taking out any loans.
If you have to go for a really low APR rate to cut down on the chances of you not being able to pay it back, you can keep track of your credit score here.
5. Don’t spend everything you earn
There is no way, even if you have your own business, that you can spend every penny you earn.
The less money you spend, the closer you are to guaranteeing a financially secure future. A way to keep track is to download an app and track your spending habits.
Here are some of Forbes best FREE budgeting apps for 2023!
6. Change your mindset
Mindsets can determine EVERYTHING. There is a reason the rich stay rich and the poor stay poor.
Lower income people have the mindset that, when they are motivated, they feel like they can accomplish everything, but then the moment rent comes out or you need to go shopping, those inner thoughts come back and convince you that you will never have enough money, etc.
The key to changing your mindset is combating those negative thoughts, When your mind tells you, “i’m always broke after I get paid,” you fight it and tell yourself, “I can always afford everything I want.”
7. Don’t forget where you come from
When I say don’t forget where you come from, think about the world’s richest people; they are the most humble.
Again, think about the quote, “If you can’t buy it twice, you can’t afford it.” don’t just be out here wasting money on the latest car just because you can; really think about what it means to you.
8. Focus on your net worth
Not everybody understands exactly what your net worth is made up of. Your net worth is the figure you have when you add up all of your assets (things you own) and subtract the amount of liabilities you have.
So you may look at your bank account as having £1,000, but that’s not what your total net worth is; it could be £25,000 if you have an asset such as a YouTube channel or even a blog!
9. More than one income stream
Every single rich person out there has more than one income stream. You can, of course, achieve and even, in some cases, retire off of one income stream.
But we are GUARANTEEING our wealth, and therefore we live by the means that we must have more than one income stream, several even! (As long as you can handle it or build a team to handle it, the more the better!)
10. Being financially literate
At the end of the day, if you want to be rich, you act rich; if you want to be poor, you act poor. Learning about financial literacy can be the most simple thing on this list that opens you up to so many opportunities!
Learn that, especially to begin with, you’re barely going to know anything, so having a financial teacher/mentor or just seeking advice from an expert will help tremendously! (Also, having someone with greater knowledge of finance in your circle will automatically help you do better.)This is one of the best finance tips for young adults.
11. Pay yourself
When we get paid, the first thing we do is pay bills. With the spare money, we then “treat” ourselves by going out with friends, buying clothes, etc.
In some instances, of course, you still have to have some sort of fun with your money; otherwise, you will go crazy! But there is a difference between treating yourself and wasting the rest of your money!
Paying yourself means making sure you put money aside each payday and letting it build up. Think of something you do frequently each month and multiply that by the year.
For example, if you go out with friends once a month and spend £150, multiply that by 12, and that’s £1,800 that you could have had! Or even if you went out half as much, you’d still be saving £900!
To conclude
Those are my top 11 personal finance tips guaranteed to make you rich! Everything that lasts long won’t happen overnight, and that’s the case with this list.
But just know that once you start implementing these tips, you have planted the seed, and you are on your way to an abundant future! What are you waiting for?
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