Your 20s are by far in a way the most formative years of your life during
these years you're going to school meeting new people and eventually
entering the workforce and beginning what you hope will be a very lucrative
and fulfilling career on top of that during these years you're probably on
the hunt for a life partner will become a homeowner and perhaps even enter the
world of parenthood given that all these major life events tend to happen in a
short 10-year window making the right decisions in your 20s is paramount to
living the best life possible and while all these events i just talked about
will impact your happiness and success there's one aspect of your life you must
have under control during this time and it's your finances not building a solid
financial base in your 20s will have you struggling financially in your 30s and
beyond and because i want to see you win i'm going to be sharing with you the 5
best ways to build wealth in your 20s and if you're new to the channel then
hit the subscribe button below for more life-changing content number one avoid
high interest debt building wealth is like filling up a glass of water every
time you make and save money the glass fills up a bit more and the more you
make and the better saving habits you have the sooner your glass will be full
and what happens when the glass is full you guessed it you can retire i don't
think there's a single young adult on the planet who doesn't have the goal of
filling up that glass as early as possible especially when they enter the
workforce and realize that the job that they thought they loved wasn't quite
what they had in mind unfortunately though in many people's quest to fill up
their glass a crack in their glass appears and every day more and more
drops exit the glass slowing down their ability to fill up their cup what does
that crack symbolize you guessed it it's high interest debt assuming interested
is like stuffing your face at a buffet you know that if you stuff your face
you're gonna be feeling sick for the rest of the day however you do it
anyways because in the heat of the moment you trick yourself into thinking
it's a good idea and that nothing bad will come of it the same thing goes for
rocking a pie interest debt you tell yourself that taking on a bit of debt
isn't gonna hurt until you are making interest payments that could double as
mortgage payments on your first home the insane part about high interested is
that as adults we know that we should be avoiding it but we assume it anyway why
is that let me explain but first make sure that you smash the like button
below to guarantee your own future financial success i think in our 20s
people get into high interest debt like credit card debts or auto loan debts for
two reasons the first is that they feel compelled to keep up with those around
them let's face it there will always be someone who's got more money than you or
nicer things than you have and when we are still figuring out who we are as a
person in our 20s we tend to still have a strong need to fit in how do we do
this we buy what others have even if it means going into financially crippling
levels of debt the other reason i believe young adults get into high
interest debt is because they lack patients 20 somethings these days don't
even know what the world was like before everything was instantized they never
knew dial up internet or having to wait for a movie to come out on dvd instead
they've always received instant text messages and are used to getting their
online orders in 24 hours or less as such when they want something they want
it now and this usually means buying things before they can afford them and
dealing with the financial consequences as they come as such in your 20s you
want to avoid allowing any cracks to appear in your glass how do you do this
you avoid high interest debts i truly believe that with a proper budget and
some financial discipline avoiding huntress debt is something anyone can do
but what if you're already in debt fortunately you can patch up that crack
and you do this by eliminating the debt you have to eradicate your debt as
quickly as possible here's what i recommend you do first create a budget
that allows you to save money every month based on your current income then
go out and acquire a part-time job or create a side hustle use your savings
from your nine to five job and every penny you earn from outside your side
hustle and pay off your debt from the highest to lowest interest rates until
you're free of all your high interest debt when you do this filling up your
glass will be 10 times easier number two build up your credit earlier on we
talked about the fact that in your 20s you'll be experiencing some very
important life events like getting your first job buying your first house and
the list goes on now you may think that you're doing everything right in order
to be ready for when these life events take place you may be studying hard to
get that high paying job or saving diligently to buy your first home
however little to your knowledge you may be overlooking one aspect of your
financial life that will affect nearly all the important life events you'll
face in your 20s what is this one piece of your financial game plan you might be
overlooking it's your credit as most 20-somethings and the only time they've
heard the word credit is in the term credit card which many of them are
abusing on a daily basis if you ask me credit is the most overlooked and
under-appreciated aspect of anyone's financial health everyone is focused on
finding the next up-and-coming stock or jumping into a job that will pay them a
bit more money but few people take the time to consider how their credit will
impact their lives and let me tell you your credit comes into play more often
than you would think nowadays your credit is relied upon as a key indicator
of your merit as an individual it's not uncommon for employers to run a credit
check on you before giving you an offer and landlords are certainly going to
want to check your credit to ensure you're going to be able to pay your rent
in full and on time finally as a young adult when you finally do reach the time
where you want to buy your first home again your credit will be a determining
factor in the rates your world access on your mortgage or if you'll be approved
for one at all in short your credit matters and is essential to building
wealth in your 20s now that you know just how crucial credit is the next
question we must answer is how do you build and improve your credit to start
what i recommend is you run a credit report on yourself to see where your
credit score presently stands to sidestep issues with employers landlords
and to get preferential rates when taking on a mortgage you will want a
credit score of at least 700 so this should be your credit target once you
know where your credit stands there are a few steps that you should be taking to
maintain and improve your credit the first is get a handle on your bills what
i suggest is that you automate all your bill payments to ensure you never fall
into a situation where you're paying late also ensure you pay in full so that
you limit any situations where you may be carrying a balance then ensure you
are maintaining a low utilization rate on your credit cards and other loans
this means that you are only using a small percentage of your total available
credit for example if you have a thousand dollar balance on a ten
thousand dollar credit card then you have a utilization rate of ten percent
aim to never go above 30 and you will never have an issue finally you're gonna
want to avoid having too many hard inquiries done in your credit harder
inquiries take place when external parties are reviewing your credit to
decide whether or not to lend you money extend your credit or grant you more
available credit when these inquiries take place to temporarily lower your
credit score which is why you want to avoid having them perform too often if
you can avoid credit lowering situations and monitor your credit in your 20s then
trust me you'll be in a much better financial position than most of the
people around you number three live minimalistically for most people their
twenties is the first time in their lives where they will finally have money
to their name unfortunately this newly founded financial success is often
abused because as i said earlier we are not exactly a generation of patient
people and this leads to overspending unnecessary debt and ultimately
financial decline to sidestep this and ensure your 20s are wealth building
years i recommend you adopt a financially minimalistic lifestyle what
does it mean to live minimalistically let me explain no i'm not going to tell
you to throw out all your clothes or only limit yourself to 20 total
possessions what i mean is that you want to set up a financial life where you can
be happy with less learn to appreciate things like cooking dinners at home or
going for walks over expensive dinners or costly nights out at the bar i think
when we were young we believe we have to spend a lot of money to have fun but
this isn't true in fact there are so many inexpensive ways to keep yourself
entertained that spending money for pleasure is no longer required therefore
if you want to get ahead financially in your 20s detach from the world of
materialism and you'll soon notice that you'll be building wealth much faster
than everyone else around you number four invest early and often remember
earlier we talked about filling up your glass and the fact that when it's full
you'll be financially free well one way to fill up your glass sooner is to start
investing as early as possible besides avoiding high interest debt starting to
invest in your 20s is the most important financial action you will take during
this incredibly formative time in your life why is that the case you may be
wondering because most people's primary driver of wealth compound interest is
largely impacted by time which is why you have no time to waste it becoming
wealthy is part of your life's plan let me share with you an example just how
impactful investing early can be in your quest to financial prosperity if you
start investing 300 a month from ages 18 to 27 and receive a 10 percent return a
year you can stop investing at 27 and have almost 2 million dollars when you
retire at 65. this means with just 28 800 of your own money invested and a few
decades of patience of course you can set yourself up to become a millionaire
because of compound interest now here's where people go wrong in their 20s they
get distracted with studies dating gaming and the like so they push off
their investing efforts until the end of this formative decade of their life this
is a huge mistake if you only start investing at 28 you'd have to invest 400
a month until you're 65 or 175 000 of your own money to get the results as
someone who started investing earlier therefore whether you're just about to
enter your 20s or about to leave them don't sleep on the importance of
investing if becoming wealthy is something you want to achieve number
five understand income pathways understanding how people make money is
probably the most important aspect to building wealth you must start
developing in your 20s you see most young adults are led down the path of
going to college getting a job and riding out that job until retirement is
that the path that's right for most people probably however is it the path
that will give you the best chance of becoming rich definitely not what you
need to realize sooner than later is that the current nine-to-five world most
people live in is not set up for you to win big financially your boss has no
incentive to pay you any more than they need to retain you and as such you
likely never earn as much as you need from a nine-to-five job to reach all of
your lofty money goals this is why as a young adult if you have any large
financial aspirations you must learn and deploy the vns model the vns model
stands for value and scale having something of value and distributing it
to the masses is how 99 of people get rich think tesla is selling
technologically superior cars to millions of people around the world or a
musician who gets billions of streams every time they release a new song
simply put when you put value and scale together you'll be punching your ticket
to your dream rich lifestyle as such in your 20s you want to start to develop a
means of offering value to others perhaps that's through learning about a
subject few people understand or building a product that lots of people
could benefit from once you have something a valued offer you can start
to seek out ways to scale in my own case i've built up the youtube channel you're
watching right now that allows me to share my value which is my financial
expertise and scale it by sharing it with my thousands of subscribers by
doing so i've been able to build up a six figure business which i teach others
how to do on my course six-figure tuber however this is far from the only way of
deploying the vns system in the example of having a unique set of knowledge you
can share your information on youtube and build a massive audience
alternatively with a product you can set up an e-commerce store and sell your
product to millions of online shoppers while there's nothing wrong with having
a nine-to-five job the reality is that a job rarely gives you the ability to
provide value at scale this is why most people never generate large incomes that
will allow them to expedite their path to riches fortunately you now have the
blueprint that when followed will have you achieving the wealth you desire
decades sooner than those taking the traditional wealth path therefore
regardless of your age learn and adopt the vns model today and i promise your
dream rich lifestyle will be achieved sooner than you ever imagined hey it
looks like youtube thinks this next video is the one that will change your
financial life forever give it a watch and let's see if they're right