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How to Get Financial Freedom in your 20s – BasedOnNews

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Financial Freedom for those in their 20s – Your 20s is one of the most important stages of your life, especially in determining your financial trajectory. One unavoidable truth about Financial Freedom is that no one ever stumbles on it, you have to plan, and be deliberate about it.

Mismanaging your 20s could see you spiral into a rat race that you may never recover from, especially building up a family.

Although it might be very difficult to become financially free in your 20s, it is your responsibility to ensure that you are on the right track, taking the right steps.

Is this achievable?

Yes, it is.

Let’s see how.

8 Factors to have Financial Freedom in your 20s

HAVE A BLUEPRINT OF YOUR FUTURE:

Every Building was first a Blueprint. It all started as a Goal, clearly drawn and then, it became Reality.

Financial freedom is a goal. Just like other achievements that you plan to accomplish at a set time, you have to perceive it as something attainable.

Draw the blueprint; have an idea of what your finances should be like. Set your mind to your plan, and draw it out. Set milestones that you plan to hit, and set time-frames for the achievement.

Remember, nothing perfect was created without an initial plan in place.

HAVE A GOOD FINANCIAL KNOWLEDGE:

People think Wealth is just about Investing. Well, Investment is good, and even better, do it more often but it is important to note that it is not something to jump into out of the blue. It takes studying to understand how to play your cards right when investing.

After studying the art of investing, then you can proceed to leveraging your newly gained knowledge. Invest wisely in places where you are sure to get a high return. Do these in different places, and in a matter of time you can be proud of your improved finances. Make smart investments.

HAVE A SOUND FINANCIAL PLUG:

While some try to gain financial freedom on their own, many get linked with sound Financial Plugs that help them attain this feat.

A Financial plug would help you create detailed and useful financial forecasts that will let you know how to apportion, boost your finances. They advise you on the best financial oriented actions to take to get the best results.

If you’re curious to know what the heavily reiterated “Financial plug” would address, they portray, financial risk management, investment planning, cash flow management, insurance planning, tax planning, business succession planning and more.

CLEARLY DIFFERENTIATE NEEDS FROM WANTS:

You must learn how to identify what you “need” and what you “want” out of mere interest. Needs don’t necessarily mean the “essential human needs” like food, clothing or shelter.

A Need is what is exclusively crucial and important to you at the moment, which is worth spending money on. From that definition, you can most likely conclude on what “wants” would be.

When attempting to make a purchase, honestly ask yourself if you are in dire need of it or consider the benefits of getting it; do they downsize the cons of not having it?

No matter how persuasive a Salesman is, don’t allow to be talked into buying what you do not need. Spend only on what’s necessary.

IMBIBE THE VIRTUE; PATIENCE:

“Click here to earn millions with a snap of the finger.” or “Invest 5k to get 50k in two days.”

Never fall for such things.

Financial Freedom isn’t accidental; it is Pre-planned and worked for.

Work towards achieving your goal of financial freedom, but know that it will not be easy – nothing worthwhile is ever easy.

Learn Patience! Don’t jump into schemes and scams, thinking they are smart investments. Wealth is not Instantaneous. It grows and accumulates over a long period. Be patient and disciplined enough to see it through.

NEVER SECURE LOANS WITHOUT A DEFINITE PLAN OF REPAYMENT:

Only look to secure loans when it is necessary, and when doing so, ensure that you can pay it back. For example, the debt you acquire to finance a higher education should not exceed your expected income. Never borrow an amount that you cannot repay, and always consider the interest rate of the debt.

The last thing you want to do is be the person who wants to gain financial freedom with a pile of debts to clear. For you to advance financially, you have to be debt-free.

It was Mark Cuban who said; “The best investment is paying off your debt”.

BE A NEGOTIATOR:

Successful Business people learn the art of Negotiation. They never just agree to a price proposed by the seller/buyer.

Also you, whilst you purchase items/services, learn to Negotiate, It doesn’t make you look cheap, like some people say.

If you’re going to be financially free, you have to understand that negotiation is one of the most crucial aspects of a business.

Through negotiation, you have the advantage of getting what you want at a rate that is favourable to you, as opposed to its initial price.

By negotiating, you could save thousands annually. Let’s Imagine if you always had to pay the exact amount in all the purchases you have made? That is a lot of money that you could have saved up for yourself.

HAVE A BUDGET AND BE JUDICIOUS WITH IT.

Having a Budget is Great. But beyond that is the ability to be judicious with it. Budget allows you to pre-plan your expenses, and it gives you a certain poise and discipline when spending, as you would be conscious of the fact that a certain amount is meant to be spent on something valuable, that you have planned.

Having a monthly budget that you can adhere to is an amazing way to set yourself up for financial freedom, one that is highly recommended.

Your 20s are not going to be around for long. It’s a time where you can make key decisions with minimal consequences and still have time to recover. However, we urge you to learn from these eight tips and accompanied by hard work and perseverance, you can be sure of gaining financial freedom in your 20s.