20-somethings and then entire Millennial generation tend to have a complicated relationship with finances. Many were growing up or just beginning the road toward adulthood when the Great Recession hit, and they’ve often struggled to find good jobs as a result. At the same time, many Millennials are embracing the concept of financial empowerment, and they often strive to educate themselves to get on a sound financial path while they’re young.
So how can interested young adults in their 20s put themselves on a path toward financial stability now, rather than waiting until they’re much older, and it’s potentially too late?
Read Financial Books
For a lot of Millennials interested in empowering themselves financially, the first step is to do the research. Learn not only the fundamentals of good finance but also go in-depth and read on topics that are most relevant to where you are currently in your financial life, as well as where you want to be. A popular financial management book designed specifically for young adults is “The Money Book for the Young, Fabulous & Broke” by Suze Orman.
Create a Budget
Often young people see the creation of a budget as somewhat of an outdated idea, but most financial experts will advise that it’s one of the best things you can do for yourself and your money. A budget doesn’t just outline what you can spend money on, but it’s also a good way to gain more visibility and control over your finances, to have a better grasp of where your money goes every month, and to create viable plans for the present and the future. If you have a partner or spouse, a budget can also be a good way to ensure you’re both on the same page regarding your finances. If you’re unsure of how to get started, you can use a budget app, which is a simplified way to manage your money right from your smartphone or tablet.
Interest rates for savings accounts are incredibly low, and have been for quite some time, so if you want to start growing your wealth in your 20s, it really only makes sense to invest. You can start with an investment program, like Timothy Sykes’ Millionaire Challenge, or you can learn about small steps you can take to invest in property. Whatever route you take, smart investing is one of the best ways you can begin growing your wealth, regardless of your current financial status.
Millennials tend to be avid blog readers already, and that’s usually one of the top ways they get their news and information, so why not include some financial blogs on the line-up of regular reads? Sites like 20sMoney.com are designed with the specific interests of young adults in mind, and they can be a good place to get tips, news, and general content directed to your particular financial needs if you’re in your 20s.
These are four simple, practical steps Millennials and 20-somethings can take to build a sounder financial future and have more control over their money.