Three Things To Do To Prepare For Your Future In Your Twenties
Your twenties are definitely a time for fun and exploring new adventures. But I also believe and the mission behind this blog is to prepare for your future in your twenties, by learning about yourself, bettering yourself and my personal favorite, learning how to manage your finances in a way that makes you more free to do things you love!
Today I'm giving you three things to do for your finances in your twenties in order to prepare for that future of freedom!
Three Things To Do To Prepare For Your Future In Your Twenties
ONE // PAY OFF DEBT AND STOP CREATING MORE
Debt has become so common that people are starting to think that having debt is just something everyone deals with and the normal way to live. If you’ve come across this post and you believe that, let me be the one to set you straight.
Debt at it’s core means you owe somebody something that you don’t have. It means you spent money that wasn’t yours to spend, aka, you had to borrow it from someone in order to spend it.
That is not a way to live!
If you don’t have the money for something you want, you can’t buy it. It’s common mathematics. But because we’ve been taught that it is okay to use a credit card or borrow when some money is needed, we’ve started to live like that is normality, when in reality it is setting us up for failure.
If you have a load of debt right now such as a car payment or student loans, you need to start working your butt off to get those paid off. Stop making excuses, blaming people, or saying you’ll do it when you have more money. No. Do what you have to do right now to get those paid off, right now.
It doesn’t matter if you have to miss going out with your friends, or can’t go out to eat, or even if you have to get another part time job. Living in debt is not really living and there is no way you can plan for the future while still owing money. Start right now, in your twenties and get rid of the excuses, make the sacrifices and be resilient, don’t stop until the balance is zero!
After that, you can start planning for that future you dream of!
TWO // LIVE ON LESS THAN WHAT YOU MAKE
I’ve said it before on this blog and talked about how exactly to do it in this post. But again I say how important, actually, not just important, but necessary it is do this. If you have any plans for the future what so ever you need to learn how to master your finances. The key? Living on less than your income.
It’s a common mistake I see people doing again and again. They spend all of what they make, sometimes more. They have set their spending limit at what they earn and wonder why they are living paycheck to paycheck. If you are allowing yourself to spend all the money you earn, that paycheck to paycheck living is never going to stop.
It’s not just about the fun spending either, sometimes bills can be those high numbers that set you over the top.
I think a lot of times people can mistake bills for permanent fixtures in their lives that can never be changed. When the conversation comes up about budgeting, they throw up the excuse of their bills being the problem, it’s not their spending. While I believe in some cases that might be true, that their bills are high and they don’t really spend that much on other things, I still don’t accept “bills being high” as a legitimate reason someone doesn’t have any money.
You see “bills” can be changed. Your phone plan can be lowered, your heat can be turned down as well as your water, and truthfully your car could be traded in for something cheaper with no payment if that payment is too much to bare.
I’m sure there are different situations for everyone and I’m not trying to make a blanket statement. What I am trying to do is point out to you that if you really want something, like to be out of debt, invest in your future or just not live paycheck to paycheck, then you need to do the work to get there.
All those changes have something in common, sacrifice.
Sacrifice the newer phone, sacrifice the nicer car, sacrifice the lights being turned off and putting on a sweater instead of turning the heat up. These are the things that will help you live off of half your income which in turns help you get out of debt and invest in the future.
How do you invest int the future? That brings me to my next point.
THREE // SAVE MONEY EVERY MONTH
Yes, every month.
If you are living off less than you make, all that money, (after your debt is paid off of course) should be going straight to savings. After all, how do you expect to prepare for the future with no money in the bank? You need to be putting money away every month in order to prepare for the future you want. Whatever that future is!
Maybe it’s a house someday? Or to be able to stay home with your future kids, or to be able to go back to school with that money? Maybe you want to travel more or just have a cushion so you don’t feel tied to your job or dependent on a relationship? Maybe you just want to be independent!
Whatever it is, it starts with having money to do it. No, money does not bring happiness, but neither does spending it all on things you don’t need or to just be comfortable. Don’t just save to splurge, save to prepare you for the future you are dreaming about, the future where you don’t have to scrape by, where you aren’t tied to a job you hate because you need the money. You have now learned how to live on less so therefore you don’t need that money.
Once you’ve gotten to that point of being comfortable living on less, you can start making life choices not all based on money as the “do or die” game changer.
You’ll get there, and trust me, it’s worth it.
I just want to leave you with this tidbit. I know I mentioned it above but felt it needed a little more of a spot in the post. All these things, though written out as steps, will take a long time and a lot of hard work.
But you have two choices, you can either walk away and keep making excuses but being sad looking at your bank account and hating your job, wondering when things will change, praying on the lotto.
Or, you can take the time and energy and work your butt off to get there. Take your future, your life and dreams seriously and go after them. Take these responsibilities seriously and be the strong independent twenty something you are! I swear I swear I swear you got this!
I’m in your corner and cheering you on!