Coming of Age
Hitting your 30’s can be frightful for some people. Claims that forty or fifty is the new 30 can alert some people of the stage in life where one should be financially stable. Is there an easy way to earn money in your 20’s?
I have put together a list of 6 crucial steps you can take in your twenties to help you grow up and reach economic glory.
6 Step Plan For An Easy Way To Earn Money
1. Discover your career path
Undoubtedly, having available options tops this checklist. But by the time you hit 30, you need something more than just a job that will pay the bills; you have to have a career, or at least be on target to establishing one.
If you are in school, remember that, as enjoyable as that can be, your fundamental reason for being there is to prepare yourself for gainful employment.
Be sure you learn some marketable skills before graduation day. And make the most out of every opportunity you have to gain financial knowledge and progress.
If you’re already working, are you in a place that you can see yourself at for the next 5-10 years? If not, you deserve to start looking for a career direction that works better for you.
When you decide your chosen profession, determine the track you wish to follow. What’s the subsequent step up from your existing position? How long has it customarily taken others to get there?
What earnings and benefits come with that role? Remember what this recession has taught many of us. No matter how well you plot your career path, you may need to take some detours.
2. Create an Emergency Fund
As a financially prepared adult, be prepared. In case a sudden emergency occurs, you should have an emergency savings fund of at least three to 6 months’ worth of expenses.
For an in-depth look at how to create an Emergency Fund. Check out an article I wrote titled: Money Saving Tips To Create An Emergency Fund.
3. Create a plan to repay your debt
I won’t pressure you to pay off everything you owe earlier than you reach 30 years of age. But if you’re buried with student loans or crippled with credit-card debt, you should at least know how to tackle it earlier than you turn 30.
Have a plan and never just assume it’ll go away. People who count on a large future bonus or bump in profits to pay off large bills. May be disappointed to find, that may not always come to fruition
A more guaranteed strategy. Have a timetable and figure out how much you’ll need to pay each month to clear the debt. Before your scheduled due date.
4. Contribute to your 401(k)
When you start saving for retirement, the easier the better. And, it can’t get much easier than putting money away into your 401(k) plan at work. Set up an appointment with a financial adviser at work to discuss where your money should go.
After you’ve picked investments that suit your needs, set up a percentage of your paycheck to be put into your 401(k) each pay period. If your company provides a match. It’s a no-brainer, make sure you’re contributing enough into your 401(k) to earn the full company match. It’s free money!!
5. Open a Roth IRA
If you don’t have a 401(k) plan to contribute to, a Roth IRA is a great option. It’s easy to open up a Roth IRA with the help of a financial adviser, or if you’re comfortable doing so, you can open one up online by yourself.
With a Roth IRA you have many investment options. But, it’s important to do your research on what investments will coincide with your plans. The great thing about a Roth IRA is that you’re putting already taxed dollars into the account.
This means that when you retire you won’t be taxed on the money you withdraw. If you’re able to max out your 401(k) plan at work you should open up a Roth IRA as well.
6. Get a side job
Who says your income should only come from your one job? There are many young people who have turned their hobbies into huge, million-dollar businesses. This may not happen for you, but earning money on the side is never a bad thing.
If you want to accelerate your savings, a side hustle can help. A side hustle consists of anything you do outside your day job to earn more money. The possibilities are limitless. For instance, if you’re knowledgeable about a particular hobby such as fitness, you can turn that into a side income as a Personal Trainer.
In Conclusion
If you take these steps in your 20s, they can help you start off on the right foot financially. When you find a legit and easy way to earn money or save money. Capitalize on the opportunities.
The important thing is for you to choose what feels best for you and give it your all. Implementing good financial habits in your 20s can save you from a lifetime of financial stress.
