Make no mistake, financial stability is a goal everyone wants to achieve, regardless of their age, skill or line of business.

However, it becomes a challenge as one grows older and takes on more responsibilities with most of use giving the excuse that we do not have enough time or the capital to get started.

The road to success is not for the faint of heart and this is why it is important to start early, preferably in your twenties when you still have the flexibility and time to make smart financial decisions that would spell out your future.

Making excuses or facing challenges

Many people in their twenties face financial instability due to a lack of financial education, poor money management habits, and the high cost of living.

This leads to a variety of negative consequences, including debt, poor credit scores, and financial stress, not to mention the fear of uncertainties that could get in the way of your quest for financial stability and success.

For instance, consider the case of Sarah, a 25-year-old graphic designer.

Sarah had always struggled with money management and found herself living paycheck to paycheck.

She had several credit cards that she had maxed out and was unable to make the minimum payments.

As a result, her credit score had plummeted, making it difficult for her to get approved for loans and credit cards in the future.

The stress of her financial situation had also taken a toll on her mental health, making it difficult for her to focus on her work and enjoy life.

Take the case of 27-year-old engineer, James, who despite earning a good salary found himself struggling to save money and build wealth.

James had a significant amount of student loan debt and had also taken out a car loan and a mortgage.

He was barely able to make the minimum payments on his loans and credit cards, leaving him with little to no savings.

James realised that he was trapped in a cycle of debt and felt overwhelmed by the prospect of paying it all off.

If you are facing similar challenges to Sarah and James, there are steps you can take to achieve financial stability.

Financial awareness and education

Educating yourself about personal finance is the first step to take when starting your journey towards financial stability, which includes learning the basic financial concepts such as budgeting, saving, and investing.

There are many online resources available, such as blogs, podcasts, and books, that can help you gain the knowledge and skills you need to manage your finances effectively.

Establish good money management practices

It is critical to develop good money management habits, such as making a budget, tracking expenses, and avoiding unnecessary debt.

It may be challenging at first, but once you get started on the process, you’ll realise that you are moving towards the right direction.

Be financially practical and smart

Living below your means does not necessarily mean that you live a life of poverty or want, rather, it is more about determining your needs from your wants – it is about spending less money than what you earn.

Yes, you have your basic needs and you also have your wants that can be put off for another time or when you have planned or set aside money for it.

The key is to save money whenever you can.

Think of it this way, by saving money you can build an emergency fund and invest in your future.

By doing so, you build a solid financial foundation and help you achieve your long-term goals, such as buying a home, starting a business, or retiring comfortably.

While it may be challenging to get started, the earlier you begin, the easier it will be to achieve financial stability.

Expert advice for those who want to start early and today

Here are some expert recommendations that young achievers can pursue to build their wealth and achieve financial stability in the current global economy:

Invest in Index Funds

Index funds are a popular investment option for young achievers because they offer diversification, low fees, and a long-term investment horizon.

Index funds invest in a broad range of assets, such as stocks or bonds, and track the performance of an underlying index.

By investing in index funds, young achievers can benefit from the long-term growth potential of the stock market without having to pick individual stocks.

Consider Alternative Investments

Alternative investments, such as real estate or cryptocurrency, can provide diversification and potentially higher returns than traditional investments.

However, they also come with higher risks, so it’s essential to do your research and understand the risks before investing.

 Focus on Building Multiple Streams of Income

In today’s economy, it’s becoming increasingly important to have multiple streams of income. Young achievers can pursue side hustles, freelancing, or entrepreneurship to supplement their main income and build wealth.

Multiple streams of income can provide a safety net in case of job loss or economic downturns.

Learn to Manage Debt Wisely

Debt can be a significant burden on young achievers, so it’s important to manage debt wisely by avoiding high-interest debt, making regular payments, and building your credit score.

By managing debt wisely, young achievers can reduce their financial stress and build their credit history, making it easier to qualify for loans or credit in the future.

Stay Up-to-Date on Financial Trends

In today’s fast-paced economy, financial trends are constantly changing.

It’s essential for young achievers to stay up-to-date on financial trends, such as new investment options or changes in tax laws.

By staying informed, young achievers can make informed decisions and take advantage of new opportunities.

Young achievers can pursue investing in index funds, consider alternative investments, focus on building multiple streams of income, manage debt wisely, and stay up-to-date on financial trends to achieve financial stability and build wealth in the current global economy.

Achieving financial stability in your twenties is essential for your long-term financial success.

By educating yourself about personal finance, developing good money management habits, and investing wisely, you can build a solid financial foundation that will help you achieve your goals and live a more comfortable life.

While it may be challenging to get started, the earlier you begin, the easier it will be to achieve financial stability.

Remember that every small step you take towards improving your finances can have a significant impact on your future.

Whether it’s creating a budget, starting an emergency fund, or investing in a retirement account, these actions will help you build wealth and achieve your financial goals.

So don’t wait until it’s too late to start managing your finances effectively.

Take action today and start on the path towards financial stability in your twenties. You’ll be glad you did.

If you are looking to start early and planning to venture into real estate, give us a call. We can help you get started.