20 years old and things are getting real! Trying to grow into an adult means trying to actually BE an adult. One thing everyone tells me they wish they did earlier save their money earlier. So, I decided to give it a serious shot and start saving money every month- for the long term. Yes, we all may save money for a new car or more hair, or a bag. Let’s invest in ourselves and save for our futures. Think about buying that house or saving for your kids and their kids.
1.Set up a Non-Retirement Investment Account
This is an account that you can put money into each month, whatever you can afford each month and you invest it.
It holds financial assets that are purchased with money that has already been taxed. The object is to create wealth either through dividends or capital appreciation or both. If you need the money you can simply sell these assets and spend the cash proceeds. You are not limited in terms of being penalized for early withdrawal like you would be with a retirement account. The main consideration with this account is capital gains taxes; the difference between the amount paid for the asset and the amount you sold it for when you wanted to convert it back to cash.
Don’t look at it every day or else you will get upset! The idea is to forget about the account, come back in 10 years and have $10,000! This is not an account to open and take money out of it every month. Even if it’s just $20 a month- save it! Put it up for your future. The first person you should invest in is yourself!
2. Turn your Passions into Income
I love photography and designing brands/ websites. I sought out people who were interested in my services and now, I have two clients who provided me a steady amount of income each month. *Humble Plug* Check out hagancrearphoto.com !! Whatever you are interested in, if it has become something that you may not focus on as much, turn it into a side hustle and I guarantee- you will start to focus on it more.
3.Match Personal Charges to Savings Deposit
Every-time you think about buying new clothes, new weave, or any other splurge, try to match the amount to your savings account! This is hard for me and I have to admit, I have not been good at this buuuuutt; try to do it! If you can afford to buy these new $50 jeans, you need to afford the importance of your own personal wealth!
So, I challenge you to join me in putting yourself first financially. We only have one life to live, let’s live it with financial freedom.