11 Ways to Build Wealth Whilst in your 20s

Here are 11 financial goals to consider in your 20s to help get you started;

Get Insured

When horrible things happen to you—say, a trip to the emergency room or a fire in your apartment—insurance may save you from shelling out thousands of dollars all at once.

Invest for your retirement

Just because the retirement age is 65, it shouldn’t mean that’s what you’re aiming for. Aim higher! You could make extra contributions to your super or you could look to invest in other avenues such as managed funds, stocks or property.

Protect your credit score

You’ll need to have good credit to take out a mortgage or a car loan. It’s a good idea to start tracking how the banks view your creditworthiness by requesting a free yearly credit report and checking your number every year or so.

Climb the property ladder

It is important for those in their 20s to learn about lending requirements for investing in their first home. This can be achieved with the right mindset and knowhow. I service and speak to people in their 20s purchasing property even on the most modest of salaries.

Stop comparing to friends

Financial success is a marathon, not a race. Don’t compete with your friends when you have a lifetime to prepare for. If you need to buckle down and pay off your debt, then skip the travel or new car this year. Pay no attention to your friends. Your diligence, hard work, and intentional living will pay dividends in the long term.

Invest in yourself

Like everything in life, it is up to you to teach yourself how to take care of your personal finances. Subscribe to a blog or listen to an audiobook and before you know it you will start to become financially literate.

Create a budget

Knowing what money is going in and out during the month is critical to your financial success. The best way to manage it is to get on a budget and track your spending.

Start a side hustle

While most people do a side hustle for some quick cash, those who are smart will take a different approach to it. The key to a side hustle is finding something you’re good at and becoming better at it.

Ideas that are popular are; creating an App, setting up an online store, renting out a room on Airbnb, photography or DJing.

Live within your means

Cutting back may not sound like fun, but spending less money can lead to a pretty prosperous future. Instead of struggling to meet your basic financial obligations, consider living below — or at least within — your means.

Eliminate Debt

Your 20s is the time to get out of debt. If you don’t get on top of it early, eventually booming interest rates will swallow you up and create major setbacks to your financial future.

Start an emergency fund

It is for those unexpected events in life: a job loss, an unexpected pregnancy, a car transmission going out etc. This is not an investment or a Bahamas fund! An emergency fund is 3-6 months of your personal expenses set aside in a savings or money market