5 Money Tips to Save You Lots of Headaches!
This is what I would tell my 20-year-old self…
Yes…some of these might be controversial. I’m sure other people have better advice than me…
BUT…
If I had the chance to go back 10 years and talk to my 22 year old self, I would take it in a heartbeat.
I was fresh out of college, dreaming large but largely insecure, and had no idea how to make my way in the world. I came from a very small town, grew up on a farm, and there were so many things that I had yet to find out and experience.
In other words…I had a lot to learn!
Sadly, with finances, you only get one shot. Things go by so quickly. It’s better to jump on that train earlier than later. Though you can still set yourself up for success later no matter what stage and age, there’s nothing like starting in your 20’s.
The biggest lesson I learned: Money is a tool!
This is what I mean: Money can be wielded for the benefit of yourself and those around you. You c. You can live well and help other people, or live poorly and hurt so many chances in life. It is really up to you. But remember, you get no second chances. What you sow today is what you reap tomorrow.
Like I said, money is simply a tool. And like any tool, you have to learn HOW to use it. Learn the way it works and the way to wield it. And by doing that, you alleviate a lot of headaches for your future self.
These are 5 things I wish I knew about money in my 20’s.
Don’t look for the dream job. Look for a Solid Paycheck.
There always seems to be some people who hop out of college and into some phenomenal career. But in my experience, they’re not as common as you think.
My struggle was my lack of confidence. My mindset hindered me from pursuing great careers. I grew up in a difficult and abusive household, and when it came to believing in myself, well…I didn’t. And that affected the types of jobs I went for.
I turned down a number of really good opportunities because of my own “small-minded” thinking. I didn’t understand that sometimes you should take something that may not be the best fit to learn and grow.
I could have gotten a job working for BMW. I had a friend on the inside. And they would have sent me over a BMW to lease for crazy cheap! Instead, I chose to stay closer to home and my community. I passed on a dream! Maybe not a dream job, but one I could have grown in, and had some amazing perks along the way.
What I wish I knew:
Use your 20’s to set yourself up for success in your 30’s and beyond.
Take a stable job as a stepping stone. You’ll probably find the career you wanted isn’t the dream you thought it was.
Even if you aren’t sure what to do, go for the solid paycheck first. It will help you land on your feet, pay off any debts you have, and that in and of itself will open up so many options for you.
From there, you’ll be able to venture into more wild territory.
Don’t Wait On a Plan
“You cannot manage what you cannot measure” — Peter Drucker
Planning is like the framing of a house. Everything depends on it!
You may want a beautiful house with 5 bedrooms and 3 baths, a large backyard deck overlooking a valley, but without a good frame, you will never get a house. It stays a wish.
That’s what planning does for us.
If you have any sort of dream in your life but don’t plan, you can kiss those things goodbye. Dreams are still dreams without a plan. If you don’t measure how you’re doing, those dreams are just wishes. They aren’t real.
This comes in the 2 main areas in life: Time and Money
Make a budget. Budgeting is just a plan for your money. And that plan is determined by what you want to accomplish. No dreams, no need for a plan.
With budgeting, you will be able to see who you are in your money — your good habits and bad habits. The areas you need to change, and the areas you need to double down in.
It will help you assess yourself as a person when you budget. It reveals what is inside:
- Storms: What you do with your money when things don’t go your way.
- Insecurities: What you do when you are compensating for something you feel you lack.
- Discipline: Or just your lack of discipline in certain areas of your life.
Figure out what to do with your time.
Your time is a precious commodity. You can spend it, waste it, or invest it. But whatever you choose, that is all there is. So choose wisely.
Take time to evaluate where it is going. 8 hrs of sleep and 8 hours at a job leave 8 hours for other things. Yes, a rough estimate, but it gets the point across. You have plenty of time, but if you make excuses, you aren’t wanting to really evaluate how you are spending it.
Map out where it is going so you can see how it is used. Then map out where you want it to go.
What are your priorities?
“If you don’t build your dream someone else will hire you to help build theirs.” — Tony A. Gaskins Jr.
Save As Much As You Can
We easily get addicted to comparison. We think importance belongs to the things we own and not to who we are. But the best thing in your 20’s is to learn to save.
Why?
Because the things you want in your 20’s are not important in your 30’s. And hitting pause on those “necessary” purchases will free up money for what you find is more important in your 30’s.
Did you get married and want a house?
Did you want to start a business in your 30’s (one you may not have dreamed of in your 20's)?
Did you want to invest in your friend’s new idea?
Did you want to start investing in real estate?
These are all great ideas! But so often the world we live in during our 20’s gets enlarged. We see things differently. We find out different things are important to us. And we may not have the opportunity in our 30’s without that money we saved in our 20’s.
Seriously, do yourself a favor. Just save it. Forgo it. Learn discipline, and that will serve you the rest of your life.
The hardest part is putting it on hold for something that doesn’t exist. You don’t yet know what you might want. But trusting in your 30 or 40-year-old self is an investment! You have so much life ahead of you, and sometimes the pain and heartache of your 20’s prepare you for what really matters in your 30’s.
So do yourself a favor. Practice restraint. Keep your dreams alive. Save your money and dream bigger.
Level Up Your Skills
Skills are the future.
Skills show your (future) employer that you know how to do “xyz”. But having a skill is not enough. You need to level up in order to improve effectiveness and stay up-to-date.
Oh, so you know copywriting?
Well, take that skill, level it up with a different style. Do you specialize in landing pages? Start jumping into Email sequences.
Or, better yet, take some courses in sales. This will equip you to harness your writing, pair it will sales techniques, and land bigger clients.
Oh, you’re a programmer?
Start learning AWS DevOps. Become Agile/Scrum certified. Become a better writer/speaker.
Do something to set yourself apart. Some of these things will not only increase your hard skills, but will increase soft skills as well — the things that actually can increase your income.
We are entering the future, not of the specialist, but of the generalist.
In December 2020, Bill Gates actually recommended “Range: Why Generalists Triumph in Specialized World” by David Epstein. According to Forbes magazine,
“Range favors the generalist approach by noting the benefits of breadth, diverse experience, interdisciplinary thinking and delayed specialization in solving the problems of the world.”
Now, I do believe in a world of specialists. We need people to specialize, to go deep in specific skills. But I also believe there is a large percentage of people who will do best by being a generalist.
I believe many top CEOs are generalists. They are able to think interdisciplinary. Many leadership roles require creating clarity from chaos, which, I would argue is a generalist approach.
But, if you look at the salary of a heart surgeon vs the doctor over the heart unit, who has a greater salary? It was the one who didn’t just specialize but was able to take his specific knowledge of heart surgery and use it to create and build a team, lead other people, make high-level decisions about setting up the whole unit for better efficiency.
These types of decisions aren’t made by specialists, but by generalists.
Create Multiple Streams of Income.
Multiple streams of income can be a variety of things! But, being a generalist will help you see multiple avenues you can leverage. Being a specialist, you only have the specific skill set that sets you apart. There are only so many opportunities (yes, they can be good ones) within that skill.
It is worth it to create multiple streams of income though.
Or even the potential for revenue!
There are a lot of writers here, put together a course in a niche where would-be writers get lost. I just found training for Ship30for30! It was brilliant!
How many writers have the aspiration to write but lack consistent motivation — and it could be for a variety of reasons! This fills in a very narrow gap with a practical training environment that leads wannabe writers through the hardest process: shipping content consistently.
You are a freelance writer, use your marketing chops to find a niche and fill a void.
In the process, create an email list. It is the single biggest factor that can change your income life.
Creating content is great, but when you write all the time, putting together Youtube videos, podcasts…etc can be draining! You are already creating content!
INVEST
- REITs
- Stocks
- Index funds
- Roth IRAs.
BUY BLOGS
- Maximize content
- Offer paid memberships
- Create e-books from content
- Use Display Advertising
- Affiliate Marketing (It’s not as bad as some communities make it sound)
- Launch a virtual summit in the niche
BUY RENTAL UNITS
- Houses
- Trailor Parks (look it up!)
- Storage Units
By building something that can continually bring in more income in the future, you are leveraging your money for a greater return.
I am a big believer in creating multiple streams that aren’t always in the same river. In a market downturn, you can always make money with rental properties where buying and flipping houses may not yield the same net return.
Finding and leveraging different ways to make money helps cushion you in case of future difficulties.
And, there is nothing wrong with using your skills in content and marketing to create different streams! But by leveraging your marketing chops by creating funnels and lead generation, you are becoming a generalist.
Specialists can indeed make a lot of money! But you will eventually hit a ceiling, and learning a complementary skill can propel you to the next level.
What do you think?
Is there anything you are creating that is turning a major source of income? Are you able to complement a particular skill with another one — like say marketing and writing? Or marketing and programming? Or programming with writing?
Let me know your thoughts in the comments below!
