20s is an exciting and energy-filled decade. You could be on your first job earning a salary. But how do you ensure wise use of your hard-earned cash?
Before running off with so much excitement, you need to understand that the money choices you’ll make today will build or destroy the rest of your financial life. That’s why it’s important that you adopt some smart money moves in your 20s.
So, what are the six smart financial moves to adopt in your 20s as a black single? Continue reading to find out.
Join our Spotcovery Global Black Community Facebook Group for early access to exclusive content and to share in a lively discussion.
Stay in the Company of Financially Smart People
There’s a popular saying that ‘birds of the same feathers flock together’. Your 20s is a time of your life to carefully and selectively decide who you allow into your circle. You need to pick friends and a partner who shares the vision and values with you.
If you find yourself the means of people who live above their means and whose idealogy is ‘first spend and worry later,’ you should soon begin to live like them and that will put your finances at risk. You’re more likely to spend extravagantly if you move with people with bad spending habits.
Hence, choose your friends and partner wisely and ensure that they share the same money value with you and encourage you to build your finances. Get one or two of these books from Amazon to learn how to be a good friend and choose good friends.
People Also Read: Let Your Money Work for You: Top 4 Ways for African Americans
Start Building a Successful Career
There are no sugar-coating words with this: your career is among the most essential things to focus on in your 20s. Your career defines you. To a large extent, it determines what your financial life will look like in the near future.
Your 20s is the right period to start walking yourself up to the professional leader. When choosing a career path, choose the one with personal and financial growth opportunities. It doesn’t matter whether you decide to go to college or learn a skill. What matters is that you develop a high-in-demand skill that people are willing to pay for.
Build Emergency Funds
As a black single, your 20s are the perfect time to start building your emergency funds. Your emergency funds are your insurance against unforeseen circumstances. Having some money saved up somewhere for unexpected expenses gives you peace of mind.
Your emergency savings should be able to cover your living expenses for at least three to six months. Building emergency funds will help reduce your dependence on credit card usage and monetary debts.
People Also Read: 5 Levels of Financial Freedom Black Americans Should Work to Achieve
Learn to Spend Smartly
Most young adults try to live a lifestyle that they can’t afford. The 20s usually come with a lot of peer pressure that’ll want to compel you to start spending extravagantly. There’s nothing wrong with buying trending things or wanting to have fun. However, you shouldn’t sacrifice your future to feed your fantasy.
Your 20s are the time to build money management habits that’ll stay with you for years to come. You should also try to learn to differentiate between needs and wants. Before you purchase any item or pay for service, ask yourself if you need it.
Begin to Invest
When you start investing in your 20s, you’re positioning yourself to become a billionaire in the future. Investing means letting your money work for you. The truth is that you’ll work till the day you leave this earth if you don’t find ways to make money while you’re not actively working.
Investing is one of those financial vehicle that allows you to make money while you’re asleep. The good news is that there are many things you can invest in as black in your 20s, including bonds, stocks, and high-interest savings.
Generally, investing your funds is among the smart money moves to make in your 20s. Here are books on investing you can get from Amazon to learn how to build generational wealth through investments.
Start a Side Hustle
Having one source of income is financially stressful. It places you one foot away from being poor, especially when job security isn’t guaranteed.
The essence of having a side hustle is to create another stream of income that adds to your cash flow. It makes you less dependent on salary or profits from your primary source of income.
The good thing about a side hustle is that it can replace your primary source of income and turn into a full-time business. This will give you full assurance that you can lose any time, rather than depending on a job.
Making smart money moves in your 20s has long-term benefits that help you reach financial success and build generational wealth. If you follow the six strategies discussed here, you’ll choose good friends and a partner, spend wisely, have money for emergencies, and invest instead of eating all your income. Check out these Amazon guides on building wealth in your 20s.
People Also Read: 8 Best Black-Owned Finance Companies Bridging the Wealth Gap
Nearly 80% of consumers visit directories with reviews to find a local business. List your business for free in our exclusive Spotcovery Black-Owned Business Directory.
Spotcovery offers unique and fresh daily content on Black culture, lifestyle, and experiences. We talk about everything black, black people, black-owned and black-owned businesses. We also deliver authentic and relevant content that will inform, inspire, and empower you! The future of black media is critical to today’s black experience! Our primary audience includes African Americans, Africans, Afro-Caribbean, and people of African heritage. Black culture is for the culture!