🧠5 Smart Money Habits to Adopt in Your 20s
How to avoid FOMO and achieve financial freedom in your 20s
Hi Friend🦾,
How many times have you been in a situation whereby you hear people say they wish had started earlier be it in business, saving money or any other endeavor. I mean let me ask, would you rather spend your time building something meaningful in your 20s and enjoying rewards later or you rather enjoy now and build later?
By the way here is HOW THE BANKS CONTROL MONEY🤼
You might feel tempted to spend all your money on things that make you happy in the moment, like travel, dining out, partying(in South Africa we call it groove) or online shopping. You might suffer from FOMO (fear of missing out) and compare yourself to others who seem to have it all.
But what if I told you that you can have both: a fulfilling life now and a secure future later? What if I told you that you can avoid FOMO and achieve financial freedom in your 20s?
It’s possible, and it’s easier than you think. All you need to do is adopt some smart money habits that will help you manage your finances and grow your wealth.
My most valuable information i can share with you, is that you got to understand what money is, Then take it from there. That is why I have built the idealistic world club. The mission behind it is to bring together a community of people who want to bring change in the world.
So the inside i share on my patreon page are not quiet found anywhere else, and trust me they won’t make you feel comfortable and as well as challenge the way you Think and then finally Act. check it out here!
But hey I got you, here are five of the money habits:
1. Save into your pension.
Pensions are one of the most tax-efficient ways to save for your retirement. Plus, if you have a workplace pension, your employer may match the money you pay in, so it’s like getting free money. The sooner you start saving into your pension, the more time your money has to grow and benefit from compound interest. Want to learn about Compound interest?
Here is a smart note about The power of compound interests.
2. Build your emergency savings.
Life is unpredictable, and you never know when you might face an unexpected expense, like a car repair or a medical bill. Having an emergency fund can help you cover these costs without going into debt or dipping into your long-term savings. Aim to save at least three to six months’ worth of living expenses in a savings account that gives you instant access. Here is what i do, I have a savings account and also an emergency/protection account. This is the money you never touch as it is there to protect you when you are drowning.
3. Learn to budget.
Budgeting is the key to living within your means and achieving your financial goals. It helps you track your income and expenses, identify potential savings areas, and allocate your money wisely. Budget control is a very vital skill that you need to have in place. I recommend using notion to manage all your budget it user friendly and has an easier workflow for everything.
One of my buddies, was surprised to see that i have a spread that highlights every money i make and where it is coming from. And funny part me and my co-workers are currently working on an app model that will help you manage all your finances in one place, I will share link once the project goes public on github.
4. Spend money on things that enrich you.
Your 20s are a great time to invest in yourself and your future. Whether it’s traveling, learning new skills, or pursuing your passions, spending money on things that enrich you can bring you joy, satisfaction, and opportunities. Just make sure you balance your spending with saving and don’t go overboard. I tend to feel good when I spend money with my family, and also investing it in either my businesses or my equipment or resources. Remember the goal of making money to be able to spend on things that make you happy,
😉psst: that’s how you buy happiness….
5. Get comfortable with investing.
Once you have your debts under control and your emergency fund in place, it’s time to make your money work harder for you. Investing can give you the potential to grow your money faster than saving alone and help you reach your long-term goals, like buying a home or retiring early. You don’t need a lot of money or expertise to start investing.
Back in 2019 I started to participate in investments while being dead broke, and I lost my first investment of about 50$+ on foreign exchange. That loss turned into an obsession to learn how investing works. That is why I share investing tips and strategies on all my platforms, because I now the power that investing holds. Losing money is not fun, but as you get used to losing it turns into Just a normal loss.
These are just some of the smart money habits that can help you avoid FOMO and achieve financial freedom in your 20s. Of course, everyone’s situation is different, and you may need to adjust these habits according to your personal circumstances.
But remember: the best time to start taking control of your finances is now. Don’t let procrastination hold you back from living your best life now and in the future.
I really recommend you heading here to learn more about why we procrastinate and how to overcome procrastination.
If you want to learn more about how to manage your money in your 20s, consider subscribing/following and sharing this reading with family and friends. As i constantly share valuable insights to master the game of life.
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Until next time,
The Idealistic World, signing out!
