Being financially secure before you reach 30 may seem out of reach for many people in their 20’s, but it is possible. I’ve always said that if you can’t manage a little bit of money, how will you manage a lot of money? There’s a good chance things will get more complex or more complicated the older you get, so if you think managing your finances is tough now, just wait! It’s actually not that complicated to get your finances more in order, it just takes a little planning and discipline!

To take control of your financial future, you have to make sure you are managing, growing and protecting your money properly. It’s easy to get scared off by the thoughts of numbers, but instead, it is wise to think of your financial health as part of your overall wellness. Feeling confident about your finances and having control over your spending based on what’s coming in can help your overall mindset. The following are some steps to consider to achieve financial security:

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1. Become financially literate.

Making money is one thing but saving it and making it grow is another. Financial management and the skill of investing are lifelong endeavors. Taking time and effort to become educated and knowledgeable in the areas of personal finance and investing will pay off throughout your life. For a business, it’s important to understand the ins and outs, and know how to find answers when you don’t know something. In a business that sends goods overseas for example, it can be very useful to invest in a professional customs brokerage sometimes referred to as an import broker. This works to make the import and export of goods run smoothly, by facilitating the clearance of goods through customs processes.

Start with the basics and understand things like: how you earn money, what comes out of your paycheck, how taxes work, how debt works, and how investing can work for you. There’s plenty of literature out there (including on this site), in all sorts of mediums (YouTube, blogs, TikTok even!) so find a source that you trust and in a medium that you can consume and understand!

2. Track your spending.

I always say that a budget is probably the most important piece of advice I can give. Knowing how much you spend and on what helps to keep your spending in check. A free budgeting app like Mint can help you do this. You might then discover that you have been ordering food several times a week which can be costly in a month. Recurring charges for multiple streaming services and certain subscriptions you never use can also be a waste of your hard-earned money. Tracking your money that comes in, like your pay check and listing your expenses and savings can be a great method in determining if and where you need to start cutting back. You work so hard to earn that money, work just as hard to ensure it’s being spent in a meaningful way!

3. Don’t borrow to finance a lifestyle.

Borrowed money should only be utilized when your gain outruns your borrowing costs. This may mean investing in a student loan for your education, starting a business, or buying a house. 

In these cases, these provide the leverage you need to start reaching your own financial goals faster. If you owe a large amount on a high-interest credit card, this can be challenging to pay off quickly. This is a losing proposition when it comes to building wealth. The added interest expense of borrowing further also increases the damaging costs of this lifestyle. Of course, if you find yourself stuck on this path a qualified financial advisor can give you the best advice on managing your money. 

4. Save what you can for Retirement.

If you start in your early 20s, then putting away 10% or 15% of your salary could be enough, according to most personal finance gurus. However, if you wait until you are 45 years old, or even older, you have to set aside as much as 35% of your salary. To figure out tools in saving accordingly, you can look at certain tools that are already at your disposal. This can be as simple as using a retirement calculator online or getting useful advice from a professional. A small amount saved early in your life can make a big difference in the future. Building a retirement plan can become more difficult the longer you wait. The most important thing is to develop the habit of saving.

5. Taking calculated risks.

As the old saying goes, no risk, no reward! This is especially useful when you are young, as your choices can be beneficial in the long run, and if they don’t work out you have more time to recover from them. Examples of risks include going back to school for additional training or moving to a new city with more job opportunities. It’s easier to take these kinds of risks when you have fewer responsibilities. 

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