Five Habits To Learn In You 20’s

Money | December 2, 2009 at 12:43 pm

Leading a wealthy and financially secure life depends very much on how and what you do in your early age especially 20’s. The span of 10 years in this age group, according to me, is the most crucial time that can decide your fate. Spend it wisely by focusing on your career, saving, and investing and you will flourish all your life. However, if you want a life full of debts and unhappiness, try ruining these years.

Although there are numerous things you can do in your 20’s, I am listing just five that are most basic and important to lead an independent life.

Earn more, spend less

There is a reason why I have placed this point on top position. Earning more and spending less is the key to financial stability and a gateway to other points. If you miss or skip this point there are few chances that you will be able to capitalize on other points.

Although this is a must in all the age groups, it the most fundamental for young people in their 20’s. To spend less try to find a place to stay that asks for less rent. Next, keep a check on your bigger expenses like entertainment, eating out, shopping, etc. These expenses are very much unnecessary and can easily be limited by a bit of self-control. Use budgeting (use any method as far as it helps spending less) to ensure that you spend lesser than you earn.
Make saving a habit

Now if you spend less, there are high chances that you will be left with some extra funds every month, unless they are stolen by your room partner. Even if he does, I am sure you it won’t be every month. Now I am not asking you to save 50% or 60% of your income. In fact, I am not giving you any amount or percentage that you must target. The sole idea of this point is to establish saving as a habit. If you have this habit, you wouldn’t have problems all you life (of course financial problems). If you are not able to save or invest, at least ensure that you don’t keep accumulating debts.

It is okay even if you can manage to save $5 per month. Do it regularly, every month. When you know that saving in now an integral part of your life, start increasing the amount. You are definitely going to earn more in coming years. Rather than finding ways to spend the increased amount, try to save more. It al depends on how you manage point 1.
Keep investing

If the place where you save and store your money is your closet, it wont last longer. Either you will use it for a birthday party or your roommate who once took your one month’s will steal the whole amount. The best way to store and earn is investing. There are thousands of books written on smart investing. However, I don’t want you to lose money on trying to trade in stock market or commodity market.

There are other better places to invest like 401(k). Monthly payment to this plan is done by allowing deductions from your monthly income. However, if such plan is not accessible to you due to any reasons, start investing in any retirement plans for a secured future. IRA is a good option.
Sharpen the saw

Not the real one of course. You are not a woodcutter. However, your saw is your bunch you skills. You probably might have some very good talents. But there is definitely much more you can learn in your early years of work. Focus on continuous learning. There is never an end to it.

Most of the youth want a high paying but effortless job. Very erroneous attitude. I don’t care (or rather you should not care) what salary you are offered, try to get a job where you can work hard that enriches all your skills and sharpens them. Learn early to get a better future. Try all kinds of work, learn how things are done and managed, develop a vast variety of skills, and never evade hard work.
Networking

I have mentioned networking as a source of finding a new job when you are unemployed. However, to build a network just after you lost your job and managing expenses is quite difficult. So, it’s quite wise to develop a personal and professional network before you forcefully have to do so. Also, having excellent relations with your colleagues and seniors can drive your career on a fast track rather than a slow and sluggish one.

Do not be industry and location specific. Try to know people from all over the industries and different parts of the world. May be some years later, you have to relocate or switch industries. At such times, these are the people whom you will benefit from. There are various other benefits of networking that are quite difficult to comprehend at this age. But trust me, keep networking and you will thank me one day.

These five pints are very strong roots that will help you stem a flourishing career and a financially sound life. These years, in your 20’s, will decide your future if you don’t decide yourself.