8 Money Tips to Follow in Your 20s

Today let's review 8 money tips to follow in your 20s.

Having a game plan helps you:

• Maximize your income.

• Minimize your debts.

• Avoid big mistakes.

Unfortunately, having a money plan in your 20s isn't common.

School Doesn't Teach Money

Most public schools don't teach:

• Making money.

• Managing money.

• Multiplying money.

These are things you must learn on your own.

By 36 I built a $1M net worth from scratch.

I wasn't the sharpest guy, mostly a B- student.

And I didn't come from a wealthy family, raised by a single mom.

But these 8 money tips helped me along the way (I hope they help you too):

Tip 1: Avoid Car Loans

An average new car loan is $738 per month according to Nerdwallet.

Using cash to buy a used car is a better way to go.

If that's not possible, then finance a reliable used car.

Once it's paid off, keep the car long-term.

Avoiding new car loans can save you $80k+ over 10 years.

Tip 2: Have a Roommate

The average cost of a 1-bedroom apartment is $1,378 according to Apartment Advisor.

A 2-bedroom apartment costs $1,562 on average.

Instead of paying $1,378 for a 1-bedroom, split the cost of a 2-bedroom with another person.

Having a roommate can save you $70k+ over 10 years.

Tip 3: Work Different Jobs

Your 20s are the best time to try different things.

Working different jobs helps you figure out:

• What you enjoy.

• What you don't enjoy.

You also learn:

• What you're good at.

• What you're not good at.

Work different jobs to find your ideal career path.

Tip 4: Learn Many Skills

Skills determine your income.

The more you have, the more money-making opportunities there are.

Learn new skills by:

• Reading books.

• Taking online courses.

• Working different jobs.

Employers pay well for highly skilled employees.

Tip 5: Save Your Money

If you don't save money, you'll always need to work.

Begin by saving a small amount of your paycheck.

For example, you might start saving:

• 5% of each paycheck.

• 10% of each paycheck.

As you make more money, increase the amount you're saving.

For example:

• 15% of each paycheck.

• 20% of each paycheck.

The more you save, the more options you have.

Tip 6: Learn to Invest

Investing is the road to financial freedom.

Put your saved money to work.

Learn how to invest by:

• Reading books.

• Taking online courses.

• Studying great investors.

Learn to make money with your money.

Tip 7: Start a Side Hustle

Turn your knowledge into income with a side hustle.

Profit from skills you already have.

For example:

• Tutoring

• Graphic design

• Personal training

Start your own small business.

A side hustle can become your main hustle— if desired.

Tip 8: Plan to be Financially Free by 40

Society says: retire at 65.

But, retirement is a number in your bank account— not an age.

If you were financially free in your 40s, you would:

• Travel more.

• See family more.

• Have more experiences.

The more you save and invest in your 20s and 30s.

The more options you have later on.

That's all for today.

See you next week.