Your 20s are the best time to grow and develop your income. It’s also the perfect time to invest in profitable ventures and adopt smart financial habits that will shape your future.

I remember the biggest financial mistake I made in the last two years, I felt really bad about it because I was ignorant. How could I of all people make such a mistake? Well, it did happen and I’m so glad I learned my lesson.

Perhaps, if someone had guided me in the right direction and I had listened or researched more about building sustainable wealth, it shouldn’t have happened.

This is why I have put together some of the smartest money decisions and habits to embrace in your early 20s especially if you want to gain financial independence.

1. Start budgeting

Budgeting is a critical aspect of financial management. It is your responsibility to tell your money where to go if you want it to be properly managed.

Budgeting is the process of creating a plan to spend your money.

Budgeting tells how much of a good steward you are and helps you manage resources effectively in order to be trusted with more.

You may think this does not work for you or it’s a bit complicated but no, it’s not. Budgeting is simply balancing your expenses with your income.

2. Stay off debt

“The rich rule over the poor, and the
borrower is a slave to the lender.” – Proverbs 22:7

I think it’s too early to start living a life of debt in your 20s. Intentional planning and limited spending can really help if you are willing. Don’t buy that expensive item on credit just because you want to impress others. One rule that works for me is ‘If I don’t need it, I don’t buy it’. I know it can be hard sometimes, but in order to claim financial freedom, you have to learn to live a debt-free life.

3. Set financial goals

This is the best time to set goals and have plans in a place financially. What do you want to achieve with your income in the next 5-10 years? How much do you worth presently? What strategies do you have in place to earn more?

– Write out your SMART goals

– Figure out what you want

– Prioritize

– Create a budget

– Have an emergency fund

– Get an insurance coverage

– Cut down your expenses

– Live less than you earn

4. Save. Save. Save.

You are probably tired of hearing the word save? Well, that’s because it’s a wise money decision. You don’t have to wait until you have a need to save before you save, you can start now.

Save today, so that you can live like nobody else tomorrow. – Woodford

I personally have a piggy bank where I save money for my future self. At a very young age, I learned to cultivate the habit of saving to invest in the future. You can start saving for that business idea, education, wedding, and future home now. And there is no better time than now when you have fewer responsibilities.

5. Activate multiple streams of income

Have a side income or business aside from your full-time job, if possible. Don’t put all your eggs in one basket, look for ways to diversify. Multiple streams give you income insurance.

An average millionaire has seven streams of income. Click To Tweet

I don’t buy the idea of depending on a single income. I believe in the multi-dimensional purpose of men. We are all capable of doing more than just one thing.

6. Start giving including the 10%

“Bring all the tithes into the storehouse so there will be enough food in food in my Temple. If you do,” says the LORD of Heaven’s Armies, “I will open the windows of heaven for you. I will pour out a blessing so great you won’t have enough room to take it in! Try it! Put me to the test!” – Malachi 3:10

Giving is a habit we should all embrace and tithing is a part of it. Tithing is 10% of your increase or income. It’s a given law of increase in the Bible and it’s one of the best Biblical principles to embrace out there as a businessman or woman, especially if you want to be free from financial struggles.

“For the LORD your God will bless you as he has promised, and you will lend to many nations but will borrow from none…” – Deuteronomy 15:6

I have personally enjoyed the blessings that come with giving 10% of my income. It has been a channel for sustainable financial growth and continuous increase in all I do. Aside from tithing, I have also been involved in charity works, humanitarian service, donations, and other opportunities to be a blessing to someone.

7. Learn to be content

Contentment is the key to financial abundance. When you’re content with what you have and who you are as a person, you attract more into your life.

Learn to appreciate what you have instead of focusing on what you don’t have. Focus on your goals and how to make more money.

What habits are you willing to adopt? Share with me below.