Do You Know The 6 Lessons You Need To Learn About Money In Your 20's?

As a young person in your 20’s knowing how to use your money in a way that will ensure you have a good financial future. Especially if it is your first time earning  money on your own.
In this article check out some valuable lessons about money you need to learn in your 20’s to ensure a stable financial future for yourself and your loved ones.

Here Are The Lessons To Learn About Money In Your 20’s

1. Learn to say no
This is very important especially if you want to be able to be financially stable in the future. Yes you need to enjoy yourself but its important that you think of your future.
Fine dining? Yes. Latest iPhone? Yes. Road Trips every week? Yes!  and the list goes on and on. There is nothing wrong with doing any of this but, you should ensure you are not spending thousands of shillings on things you don’t necessarily need.
This will help you save up more money that you can use to invest in your financial future.
2. Live within your means.
This goes hand in hand with the first point. You don’t have to spend all your money on keeping up appearances. There is no point in living in a house you can barely afford just so that you can keep up with your friends who are earning more than you.
Living above your means will not offer you any financial growth because all your money will go to catering for expenses and you can only keep this up for a short time.
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3. Other people will spend your money if you let them
Are you the one always offering to take your friends out, buying them drinks just because you have a job now, if so then this is a habit you need to stop. There is nothing wring with treating your friend once in a while but if you do it all the time then you end up using your money while they continue saving theirs.
The trick is no one will ever say no when it comes to spending your cash it is up to you to decide how much you are willing to spend on others and set boundaries.
4. Set up an emergency fund
It may seem useless now but when something goes wrong you will be glad you have extra money to spend which will help you avoid spending all your money. It could be hospital bills or money to tide you over before you find your next job.
It doesn’t have to be an emergency fund only, If you would like to travel then set up a travel savings account, whatever it is you want to do you need to ensure you save for it so as not to use your salary all the time.
5. Your first salary
Most 20 year old’s expect unrealistic first salaries, yes you deserve a good pay for the work you do however, you need to gain experience and skills first before you start earning a six figure salary.
Former Kiss 100 radio presenter Caroline Mutoko revealed that, “I earn a modest salary. I don’t want to earn a salary that will make it impossible for me to be employed after I leave Radio Africa – a lot of people have never understood the concept of not pricing yourself out of the market.” Interesting huh?
6. Make mistakes
Another thing to remember is that because you are inexperienced in terms of money and investments you will obviously make some mistakes along the way.
There is nothing wrong with that, whether you start a business and it fails or you invest in something and it doesn’t work out, you just need to remember that these are learning opportunities.
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All in all
That said you don’t need to make poor decisions just because you are young and inexperienced. Having a good financial future depends on how you treat your money now, so as much as you have fun and explore remember to invest in your future.