Everybody’s mind is built on becoming financially independent even those in their 20’s but it seems difficult and impossible to them because acquiring wealth at this stage is like a long time journey they will never accomplish.
Have you ever sit to think of having your own money one day and be financially independent? This article is specially for you if you have the thought of being financially independent in your 20’s.
It is clearly understood that many of us face lots of challenges in achieving the task of being financially independent in our 20’s due to circumstance or due to the mindset that states ”Until you are 30+ before you can start making huge money”, very funny.
With my line of work and experience, I have been able to come up with these 5 steps to help you solve the problem of becoming financially independent. Though it’s a rough strategy but it is overwhelming if you can follow them accordingly.
So, let’s discuss the 5 steps on how to be financially independent below. Remember, opinions and contributions are highly welcome at the end of this article.
5 Steps on How to be Financially Independent in Your 20’s
Listed below are the steps on how to be financially independent in your 20’s
- Have a proper planning
- Create a budget
- Live within your income
- Build and increase your source of income
- Be passionate and focused
Have a proper planning
Many of us lack adequate proper planning to anything we want to do, invest our time or put in our energy. Like myself, at 18 when I wanted to start up a small business that can earn me my own money, I jumped into it thinking things work that way and at the end, little things took my attention and I end up spending my business money on fancy items.
Weather you want start up a business, apply for a job or invest in your skills; the first and best brilliant step to take is to have a proper plan on what you want to do.
Having a proper plan simply means arranging your activities or schedules in order to take one step at a time. To be financially independent in your 20’s, you need a proper planning towards any business or job that you want to do and if you have difficulties planning things all by yourself, feel free to speak to a trusted family or friends for more knowledge. This will help you know when to do things and when not to take a step.
It is only when you have a good and proper planning towards achieving a particular goal that you will be able to work with things accordingly.
Create a budget
Like I explained earlier in the planning phase using myself as an example, it will be difficult for you to be financially independent in your 20’s if you did not create a budget. Having a budget will help you limit your spending and prepare you against failure.
If you really want to be financially independent in your 20’s, create a strict budget and stick to it. This will build your mindset towards your earnings and you will be able to save according.
A budget simply means setting a standard for what you earn, how you will be spending it and the fixed amount to save. If you really want to be financially independent in your 20’s, you need to strict with your budget because you will be tempted to touch but your budget will make you realize that, their is a certain amount that you can spend at the moment.
For example, if you are earning 20,000 naira, your savings can be 10,000 naira, foodstuffs 8,000 naira and 2,000 naira for upkeep. Then for those who will have to send money to families, your budget can be; 7,000 savings, 8,000 naira for foodstuffs, 3,000 naira for the family as the case may be and 2,000 for upkeep.
With this strategy every month or from every earnings you acquire, you will be able to set yourself free from financial crises and failure will be the last thing to face. To also help you take care of your wardrobe from your income, squeeze once every 4 months and buy cloths for yourself and cancel savings for that month.
This will help you to be financially independent in your 20’s if you follow it well without missing any step but if your love for fancy things are higher than your needs, you might not be able to achieve this step.
Live within your income
One among the things that kill young minds who is at the verge of being financially independent is living above what they have.
Living above oneself is the act of spending extravagantly without the thoughts of having any safe keep. One who spend above what they are receiving have 0% chances of being financially independent.
When you live within your income, being financially independent will be very easy to achieve. How? By cutting your coat according to your cloth. Never let your spending be more than what you are receiving.
For example, you can’t be earning 20k as monthly income and you will be wearing clothes worth of 10k, shoes worth of 15k or bags worth of 20k. All this will definitely put in debt if you are not careful.
Like I explained earlier in the budget phase, when you are earning 20k as an income or something bigger than that a little, try as much as possible to have a budget and a planning of what and how you are going to spend it so that you can achieve this aim of being financially independent in your 20’s.
I know that it is usually tempting especially when you have friends who don’t even need to hustle for money before getting them. They spend unwisely, buy lots of irrelevant and fancy items and many more. If you are not careful and wise, you will be moved to spend the little that are managing and wishing to see yourself through financial failure.
So, the best way to save yourself off stories that touches the heart later or been envious of your mates that are doing better than you; you will need to stay focused with your plans and budget and live within your income.
Build and increase your source of income
Sharing from experience, one of the things that kills and give one a set back is sticking to a particular job that earn you less than your knowledge. You as an individual that would love to work hard and be financially independent in your 20’s, you need to update your resume constantly and build your portfolio.
Sometimes it’s surprising how a person that share the same level of education with you earn more pay than you right? That is because they didn’t evolve their knowledge in one specialization. While you were busy helping another man to build their dreams by working hard under them for a pay, they are busy running part-time and side jobs just to boost their portfolio.
So, in order to be financially independent in your 20’s, you will need to build your portfolio and increase your source of income. For example, I am a professional school teacher, a blogger and a content creator. After teaching at school or once school vacate, I will focus on my blogging business and also creating of business and financial contents.
Ask yourself questions about other things that you can do aside your monthly paying job that can serve as a side hustle for you. Sometimes, engaging yourself in a business from the little that you are earning helps to build and increase your source of income because you are not just working to get paid, you are also selling to earn profit at the end.
Be passionate and focused
The last step to take in becoming financially independent in your 20’s is to be passionate and focused on what you do. Indeed, their is no better way to achieve one’s aim and objectives if you don’t have passion for what you do.
Most times, we will just want to belong and bear the tittle of working or in a business. Before you choose anything or any job to do, ensure that you love that job or the business because your love for it is the only thing that can trigger your strength to be committed and focused.
Remember that every business or jobs that can lead to financial breakthrough needs commitment, dedication and attention. If you have all of this, be assured of success and you will found yourself smiling out of being financially independent in your 20’s.
This article is for everyone who wants to see their selves out of financial crises and specially written for those who have been questioning their selves and asking questions on how to be financially independent in their 20’s. Thanks for reading.
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