Financial Advice I Would Give A Twenty-Five-Year-Old
Many of us have young siblings, sons and /or daughters, and we sometimes get nervous as we watch them grow, fearing for them, what life might bring to their tables. When you come to think of it well, you will find out that you worry for nothing. All you have to do is to rightly advice your child, let them know what may be ahead of them, and leave the rest to God.
At the age of twenty-five, many youths face a lot of challenges and pressure from the various perspective of life. Money has nowadays become an object of serious pursuit in life, and the lives of many youths at that age are being affected.
There’s a lot of financial advice that your parents may not have given you when you were growing up, yet they are very essential. A twenty-five-year-old is experiencing socio-economic changes in life. They may have just landed their first gigs, they may have been employed in their first jobs, or just begun their dream businesses.
The worst part is for those who have not yet started receiving any good financial life. It can frustrate them if they are not educated about it.
Here are ten financial bits of advice I would personally, give to a twenty-five-year-old:
- Learn To Negotiate
This not only goes to the twenty-five-year-old alone but also to everyone else, including you who are reading this. This is most important when it comes to the negotiation of salaries, skills, etc. It is always good to know the market value of your work and negotiate your salary as per facts.
- Save Higher Percentages Of Your Salary
I understand that saving ten percent of your salary is the rule thumb, but twenty percent of your salary is surely significant over your lifetime. If you compare the amount you have in sixty-five years while saving ten percent, versus twenty percent, you will know the secret behind all this.
Starting early commitment to saving is good, especially because of the effect compounding interest on savings.
- Learn How The Tax System Works
Well, you are working so hard and saving your money. But if you are not so careful, you might give all that money to some else. Look at the deficits, try to become a tax expert and consider the tax implications of your financial decisions.
- Obtain An Advanced Degree
It does not matter the kind of profession you have, as you must try and attain an advanced degree as soon as possible. That knowledge is entirely necessary for you, and it will increase value than you just thought. You will find that after the degree, you will be given several job offers, some of which you might reject.
Companies will be offering you tuition reimbursement programs. It is so simple, that when you are an employee, education has got a direct impact on the current position you are holding.
For those who are in business/self-employment, get educated in various business and life skills, as much as possible. A great rule is to have at least one training a year, that spans up to 3 months, and other ongoing short courses throughout.
Websites like Udemy.com, Futurelearn.com, Alison.com, as well as many others continuously offer excellent up to date courses in almost any field. You can also check out various renowned university websites for any special courses they may have for free or on offer.
- Invest In Property
If you do not mind being a property owner, it is a good idea that you invest in real estate. Real estate is a long term investment, as the tenants will be making payments over the years. On the other hand, when your properties are free, you will have an income stream for an extended period. In case, you buy your first home; you can turn it into a rental house when you have finally saved enough money.
All you need to research is a strategic place, with excellent geographical area/, and you are good to go. There’s always something for every budget. Do your research well and develop a strategy to save and buy property. Your older self will definitely thank you for this.
- Marry Someone You Deeply Love And Stay In The Marriage
This might sound out of the topic, but it largely determines the financial condition of anyone. Well, we all get into marriages, not expecting any breakups or divorces. But honestly, divorce has several adverse effects on people’s financial statuses.
You might not notice the hidden costs, but once it happens to you, it will dawn to you that it is real. But you may curse yourself. But why curse yourself after telling you this? A good determining factor for a suitable spouse is to marry someone who has the same values as yourself. This will greatly reduce friction that leads to breakups in the future. I recommend reading the book Finding a life Partner, by Bro John N. N. Ng’ang’a.
- Focus All Your Energy On Increasing Your Income
Switch your mind and get it out of saving all that you have, to forego all the things that you love. Instead of this, start looking for ways you can get every other coin that passes by you.
This is the only way you will have money freedom. Your income will switch to six figures, and all your age mates will be wondering how you did it. It is all hard work, determination, and focus.
- Create A Ghost Account
When I talk of a ghost account, this should not be accessible by anyone, not even you. I think a savings account is better than a temporary holding account. I am saying this because you never know when you will decide and enter into your brief account and deep into it, only to notice after consuming everything in it.
- Become A Minimalist
By saying this, I do not mean to tell you to live a miserable life. What I am putting across is that you instead spend your money on meaningful people and experiences, rather than on things. I hope you get the difference. And if you must have an expensive “unnecessary” indulgence, just pick one, maybe, use it as a reward for hard work and achieving your goals.
- Use Credit Cards and Debt Responsibly
Credit cards are perfect. You can use them whenever you are traveling; you can also pay your bills via them. If you use your credit card well, you will know its importance and gain from them.
As for debt, try as much as possible to only get into debt for an expenditure that will bring a return. If it is a vehicle, can you use it also as an uber? Etc.
Life at twenty-five will not be as challenging as you thought, especially if you consider the above points, and put them into actions. At this age, you are a young soul, energetic and free to dig all corners of the world. This is a time that you will once wide that it came back only once. Therefore, do not use it in a way you will regret.
If you use your time and money well during this age, you will never wish it came back, because you will have accomplished a lot, and you need to cut, relax and enjoy.
Which other tips do you have that have worked for you? Or someone that you know?