Key Points To Consider In 20s
If you are reading this then probably you are in your 20s and of course, you are curious to know about key points to consider in 20s. As soon as we enter this age we all realize the importance of aspects like saving, debt and personal finance.
One has to really concentrate on this decade of life as major transitions related to relationship, well-being, and career happen in this period and this phase will (mostly) define the rest of the life.
If we talk about career, this period is about learning, experiencing and being productive to get the best of life. If you trace history you will find that many people reach the success peak by their thirties or forties. But you have to also note that to reach this destination they had taken small but vital strides while they were in their twenties or mid-twenties.
And that’s why this decade of life is very crucial, as there are chances that you can be rich quicker if you start off early.
1. Learn and develop the skills of both savings and investment.
It is very vital to be budgeted and to keep a track of savings. So the ideal way is to mentally prepare yourself that you have to save a fixed amount (the larger part of income) and keep rest for your expenses. After developing emergency fund one should start investing (only after gaining knowledge of investment and personal finance) as we all know right investment lead to better returns.
2. Enjoy your life smartly.
You do not have to live a very frugal and boring life. You can spend some money for your enjoyment. But you can do that smartly if you want to be rich in future. There are various ideas to do so, for example, coupon and discount options which help you to get frugal travel packages and low-cost entertainment.
3. Develop new skills.
We all know how important is an investment. But apart from savings and stock investments, you must also consider investment in yourself. So you can cultivate new skills of course which interests you.
4. Choose a right partner.
You and your partner must have same financial goals or values as this will help in long run. If your partner has problems now then you can help and guide your spouse. And later financial management by both’s effort will lead to your financial goal.
5. Imagine yourself where you would like to see yourself in future.
You have to sit and analyze what you want to be and where you see yourself, say 5-10 years down the line. Make sure you have SMART Goals(specific, measurable, actionable, reasonable, and timely).
For example, if you plan to buy car or lavish home then, of course, you have to start working to gain it. Clearer your dream, more specific your goals will and easier you will reach your goals too.
6. Read personal finance books and blogs
Many of us before 20s do not even know the basics of it. Our schools or colleges do not provide dedicated subject on it so we have to rely on these mediums. So one should ideally read books on personal finance and blogs by finance gurus during their 20s to know vital information.
Recommended books: I Will Teach You To Be Rich by Ramit Singh, Rich Dad Poor Dad by Robert Kiyosaki and The Total Money Makeover by Dave Ramsey.
7. Do not compare with others.
Compare yourself with yourself and not with others. Everybody on this earth is different so the comparison will not help. Instead, you can keep a track of your accounts and compare how good or bad you are doing to reach your financial goal.
Follow these key points to consider in 20s so that you are never in the financial mess in future. And surely these things will surely help you be to richer later.
Do you know some key points to consider in 20s ? If yes then do mention in the comments below.