How to Build Wealth in your 20’s

Becoming wealthy at an early stage of life is something most youngsters dream of achieving and contrary to what some people believe, being rich in your 20s is a possible and sweet experience.

Building wealth isn’t about putting all your hopes into “future.” You’re never too old to start building wealth, investing in business or failing for success, but if you start when you’re young, you have a better chance to manage risks and expand your wealth in future.

Life in your 20s is not without its challenges; you might have many debts and dozens of unknowns that sets you back. Be mindful, and believe there is never any easy way or shortcut to building wealth, but following these strategic steps can help you make it at your twenty’s;

1. Take Risks

Take risks at your 20's

There’s a wise saying, “If you’re not afraid of dying, there’s nothing you cannot achieve.” Being young means you have a lot of years ahead of you. Now is the time to take risks. Invest in bigger risks that might yield better results. Jump on new ventures and new opportunities.

If things go awry you’ll have plenty of time to make up for it. Most wealthy individuals will tell you one of their greatest keys to success has been taking calculated risks.

Also read: Ways to tackle business risks

2. Focus On Earning

Focus on earning

“In today’s economic environment you cannot save your way to millionaire status,” writes Grant Cardone, who went from broke and in debt at 21 to self-made millionaire by 30. “The first step is to focus on increasing your income in increments and repeating that.

“Your income might be $1,000 a month but in five years later you can make it $10,000 a month. Start following the money, and it will force you to control revenue and see opportunities.”

Earning more money is often easier said than done, but getting a side gig is one of many options you can explore to earn more.
Also read: How to build wealth on a small salary

3. Save to Invest, Don’t Save To Save

Save to invest and build wealth

Saving money for keeps is not going to get you there on time. The only reason to save money is to invest it. Put your savings into secured, untouchable (fixed) accounts and never use these accounts for anything not even an emergency. This will surely force you to keep focusing on earning more money. Plus, get use to spending money now on things that will fetch you money in the future. To this day, at least twice a year, be tagged broke only when you invest my surpluses into ventures you cannot access.

Also read: Startup financial steps many ignore

4. Ask for help

Ask for help early in 20's

“At a certain point in business, you couldn’t grow any further until I hired a few key people,” writes Daniel Ally, who became a millionaire in less than five years at 24.

He continued: Asking for help wasn’t my forte, but I had to make it happen. Within months I had a lawyer, editor, personal trainer, part-time chef, and other personnel. It cost me a fortune at first, but eventually helped push me into the million-dollar mark. Most people won’t ask for help because their ego is in the way.

Asking for help extends beyond hiring key people. As self-made millionaire Steve Siebold explains in his book “How Rich People Think,” the rich aren’t afraid to fund their future from other people’s pockets.

“World class believes in using other people’s money,” he writes. “Rich people knows that not being solvent enough to personally afford something is not relevant. The real question is, ‘Is this worth buying, investing in, or pursuing?'”
Also read: How to build wealth on poultry farming - beginner's guide

5. Self-Investment

Invest in yourself

“The safest investment I’ve ever made is in my future,” writes Hughes. “Read at least 30 minutes a day, listen to relevant podcasts while driving and seek out mentors vigorously. You don’t just need to be a master in your field, you need to be a well-rounded genius capable of talking about any subject whether it is financial, political or sports related.

Many wealthy people are voracious readers. Take Warren Buffett, a successful investor in the world, who estimates that 80% of his working day is dedicated to reading.
Also read: How to build wealth from a stable network

7. Shoot For More Millions, Not Just 1 Million

Shoot for more millions

“The single biggest financial mistake I’ve made was not thinking big enough,” writes Cardone. “I encourage you to go for more millions. There is no shortage of money on this planet, only a shortage of people thinking big enough.”

Also read: Rules to break to maintain a millionaire

8. Pay down Your Debt

Pay down your debt

Before you start regularly saving and investing money, it’s usually a good idea to pay down any debts you may have accumulated. Credit card debt, student debt, and even car loans can carry heavy interest rates that drag you down, demanding monthly installments that chip away at your revenue while racking up additional interest and penalties that take away even more money from your future self. Don’t let this eat away at your potential; make it a first line priority to get rid of your debt as soon as possible.

Also read: How to manage any debt

9. Be Decisive

Make your decision

Tucker Hughes, who became a millionaire at 22 says, “Avoid decision fatigue, conserve your mental power by making easily reversible decisions as quickly as possible and aggressively planning recurring actions so you can execute simple tasks on autopilot. I know what I am wearing to work and eating for breakfast each day next week. Do you?”

Also read: Some common fears wealthy people face

10. Be Innovative

Be innovative

This aspect is all about being creative and for that you need to develop a child-like mind that views everything as “possible.” I don’t have the detailed trick on how to be innovative, but if you know how, that’s a bonus and please do share with the rest of us!

Also read:  Key way to wealth as a youth

There you have it, adhering to these steps will be a smart way to begin your journey toward accumulating wealth no matter where you are in life. Don’t sigh too much! No one says it easy, but perhaps you might need to adjust your discipline, to join the race. See you there!

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