Did you grow up rich? If not, you can’t become rich overnight by accident or luck. Accumulating wealth & becoming rich requires hard work, dedication, passion and most importantly it needs a certain set of habits & maintaining them throughout the year.
It is tough to even imagine becoming super-rich, especially if one is from a middle-class family which had a decent livelihood, never having extra much to spare.
Well, this is not true, most of the people imagine this and belongs to the middle-class society for entire life.
The truth is even if you start early with little, there are certain habits if started early in your life and career i.e. in your 20s, can make you wealthy in your 30s.
“Excellence doesn’t lie in the act, but it does in the habit.”
The sooner you start, the more is the chance of becoming rich.
Here are Top 10 Financial Habits to Start in Your 20s
1. Have a Plan of Action
Having a plan is the first and the most important thing required to be and wealthy. First, you need to make a budget that you can stick with, in any condition. List meaningful expenditures in your budget & avoid spending on luxury items. A proper plan of action is the key to success.
Stick to your budget and try to accumulate enough wealth to clear all your existing debt, if any. Don’t forget to save some emergency funds monthly.
2. Maximize Your Earning Potential
Just saving money will never make you richer. Increasing your income will.
Maximizing your earning potential is the best way to increase your wealth. Focus on your career, on whatever you are doing. This will help you to enhance your skills which will help you to grow faster than your peers and earn more. If your current job doesn’t offer growth potential, switch your job.
Enhance your skills by learning new things of your field, and if required join part-time courses. Investment in knowledge is always the best investment.
3. Have Multiple Sources of Income
Relying on a single source of income can never end up making you rich.
To be rich in the future you need to take steps in the present. One of those steps is having multiple sources of income. You must be wondering about being in a full-time job, how to have multiple sources of income? But, the answer to this is Yes! Why not, having multiple sources of income is possible, you just need dedication and passion to do so. To do so, you can work as a freelancer for another company as a part-time job.
If your spouse is a homemaker you can encourage her to start doing some work from home which will help increase household income. Providing home tuitions can be one possibility.
4. Have Long-term Plans
Investing for your retirement is always a good idea. The earlier you start contributing towards it, the better will be the returns. Relying on your employers PF contribution is never a good plan. Have your own investments and savings.
It’s quite normal to begin saving for retirement in your 20s to increase your wealth in the long term. By investing & saving for the long term, you are going to ensure a wealthier future even beyond your 30s.
5. Having Passive Income
Passive income comes from the assets that pay you monthly for no work, you need to invest once and it pays you back for a long time. This can also be called to automatically generate wealth over time.
Some source of passive income is selling advertising on your blog or website, some videos which you made, or the properties which you purchased and which you are going to give on rent.
Stocks, shares & bonds are some other sources of passive income, where you invest once and they are going to give you money in the future.
6. Start Your Own Enterprise
Working for others is never completely satisfying. You will always have limited income & limited opportunities too. Before your 20s are over, you should be excellent in your work. And by the time you are about to enter your 30s you should start your own enterprise/ business. This is going to give you satisfaction and can add a lot more to your bank account.
7. Choose Your Friends Wisely
People around you affect your mind & your lifestyle too. If you have a circle of friends who are so obsessed with their looks and image, then you might end up spending more on your outfit and lifestyle. Many times you may feel pressured by some of your friends’ to buy an outfit way out of your budget just for a night out or trip.
Or you might get invited to an expensive party or something like that. All this is just going to add extra cost to your budget and nothing else.
Be friends with like-minded people, so that each one of them can bring in something extra to the common group.
8. Set Your Goals
Setting primary goals are very important. When you have goals you are motivated to achieve them. Here I am focusing on primary goals, not on bigger or long term goals. If goals are primary and smaller they seem to be realistic as compared to that of the long term goals. Moreover, when you achieve one goal you get confidence and inspiration to achieve the next goal as well.
9. Have a Role Model
Having a role model keeps you motivated and inspire you in your downs.
Your role model is all the time in your mind and moreover, you know what you want to become and which path to follow. You can follow the footprint of them to take the minimum risk and to achieve success.
10. Think Big
Being in 20s you see the world through your unique vision which gives you an edge; this might enable you to see possibilities that others look past. Have a creative mind and unleash your ingenuity. See things bigger than yourself & have a mindset to convert it to real.
Your mind is nimble and flexible. You can find your own path to greatness and wealth. Know that you’ll likely have some failures along the way — accept that. Mistakes are allowed but you can’t afford to repeat them, try to learn from your mistakes and use it as a key to unlock your success. Always push yourself to keep dreaming!