The thing is, good habits make a big difference in everything (at work, relationships, and money), and while the “old dog doesn’t learn new tricks” thing isn’t exactly true, keep in mind that, the younger you start to develop these good practices, the easier it will be to maintain them over time.
And when it comes to taking care of your money, many experts will tell you that your 20s is the best time to start.
It is when you get your first serious job, when you begin to realize that things cost and that nobody is going to give you anything, and it is the moment in which you must begin to pay attention to your actions and how they affect your economy.
The good news is that there are some simple habits that are very helpful and that will allow you to do it the way you want when you reach the age of being independent, taking care of your family (or yourself) and retiring. the one you want
5 money habits you need in your 20s to live well:
1. Frugality
This is a trick of many of the richest men in the world. Frugality refers to moderation, not living beyond your means, and not spending money you don’t need.Surely you have already heard that millionaires like Warren Buffet, Mark Zuckerberg and Bill Gates do not spend on expensive clothes, luxury cars and extravagant watches, and this is because they know that these things are temporary and that they are not necessary expenses.
It does not mean that you cannot indulge, but that you should avoid doing it regularly and you need to live within your salary and your possibilities
2. Constant savings (and investments)
Saving is essential to living well and being prepared for emergencies, and the more you do it, the easier it will become, as it will become a habit.
What is recommended with saving is to start as soon as possible, making small contributions to a savings fund that you know you will not touch unless it is absolutely necessary, or when you reach the goal that you established according to your plan (such as when you save for a trip or to buy something in particular).
It is a myth that you should contribute large amounts, in reality, everything helps and it adds up over time, you just have to learn to resist the temptation to use that money for other things.
On the other hand, you should also consider investments, since saving only saves your money, while investing helps it grow over time, and this is something that Bill Gates himself recommends.
3. Review your accounts and have a budget
Not only is it important that you save and be moderate, it is also necessary to keep track of your accounts , so you can know what you spend the most on, what your debts are and what things you could reduce or eliminate.
Having a budget will help you divide your money to pay for the most important things (such as rent or water), and so you know if you have extra money for those little luxuries or cravings that may arise, but without risking having debts or not being able to make the payments you need.
4. Prevent debt from piling up
The thing about debts is that they generate interest over time and, if you don’t pay them on time, then the amount will increase and this will make it much more difficult to pay off your accounts.
You must be aware of the debts you have and the payment dates, to prevent interest from increasing and accumulating, since this can end your savings and emergency fund.
5. The big spending rule
This is simple and helps avoid impulse purchases.
The rule is that once you see something you want to buy, you should stop, go home and think about it overnight, trying to determine if it is something useful, necessary and going to bring something good to your life, and if it fits. to your budget.
Once you determine this, then you can spend.
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