3 Things to do in your 20s to get rich in your 40s
If you are in your 20s, getting rich and “making big money” may feel like a distant dream. Although there is no quick fix to becoming a millionaire, the key to building wealth is to start as early as possible. From saving tips to money management, here are three smart moves to do now that will benefit you for years to come.
1. Future First: Automate your savings
You might notice your monthly pay check is deducted for your SSS contribution. This government mandated insurance program can be your safety bet for your future, but experts advise that this won’t really be enough.
Try to save 10-20% of your pay check into a second savings account. If the temptation to spend is too much, automate your savings by setting a scheduled transaction in your online banking account.
2. Innovate: Grow your skills
Your 20s is a time to build the foundations for wealth. Investing in yourself is a surefire way to increase your value, opening doors to more opportunities and wealth in the future. After savings and debt repayments, spend money on growing your skills that help in advancing your career, or start a side hustle.
In the startup economy, it takes a modest seed fund to start your own part-time venture that will bring in extra income.
3. Invest Always: Multiply your money
Double-up your benefits by looking for places to put your money in that give higher rewards. You can take advantage of CIMB’s UpSave account that offers a hefty interest rate per annum of up to 4%. Plus, you can get Life Insurance FOR FREE when you maintain a minimum balance of P100,000.
Additionally, hold true to the phrase “avoid putting all your eggs in one basket.” Depending on your risk profile, you can invest in low to high-yielding instruments with a calculated risk approach. A sound and minimally risky investment for your 20s is buying a home as property assets tend to appreciate over time.
Remember, there is no magic bullet to get rich quick, but it is not an unachievable mystery either. With these basics, you can start your wealth creation journey in your 20s no matter how small your actions or abilities and enjoy abundant wealth in your 40s.
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