Don't you wish someone told you this about money when you were in your 20s?
When I look at the financial education I received at school and university, I always wonder how different my life would be today if I had better quality information.
Where would you be if your teachers, parents and mentors taught you more about managing money, the stock market, investing, savings and general day-to-day budgeting?
How different would your life be today?
Let's take a closer look at...
The four things someone should have told you about money in your 20s
1.You don’t need to have a full-time job to earn an income
When I left school, I went straight to university. That’s just how things happened in my family. I went to university to study a degree – two in fact – one degree that I often forget exists because I never use it. To pay for my studies, I worked in a bar and moonlighted at a restaurant.
If someone told me that I could start a business while I was studying, that’s exactly what I would do. I wouldn’t have spent four years of my life working odd jobs, I would have focused on a business, creating a steady income for life.
2.Save 10% of your first paycheque
What did you do with your first paycheque? Maybe you spent it celebrating, or used it to spoil yourself. Well, if you invested it, great! If you didn’t, don’t you wish someone would have told you to take 10% of your monthly income from day one and save it for a rainy day? Just imagine how much more money you could have in the bank right now if you did that from the beginning?
3.Take a little more risk – You can handle it
I’m sure you know the bigger the risk the bigger the reward. When you’re in your twenties, you can handle a little more investment risk than when you’re in your thirties or forties. That is simply because you have more time to recover from a financial loss. I would certainly have invested some of my money in penny shares. You see, even though they carry a little more risk, they also deliver exceptional returns.
4. Don’t get into debt – It will trap you for life
When you start earning a steady income in your twenties, the temptation to buy things you don’t need with money you don’t have is huge. Banks are eager to give you credit. Not because they want to help you buy the things you want, but because they want to collect interest from you for the rest of your life. Banks know that once you have debt, it’s difficult to get out. If you have credit cards, I’m sure you know what I mean.
If you know someone you care about that’s just started working and earning money, don’t you think they need to read this? Give them the chance that you don’t have. Share this article with them and give them a better opportunity at life.