I share with you six smart money tips you can try before you reach 30 and gain financial freedom in your old age. I understand the meaning of success depends on an individual, but some one who earns atleast 1000 bucks per month may be assumed successful by the public.
1. Keep your mind open to new opportunities
Don't go for less that your full potential. Don't close your mind because you are in your first year of college and you think it is four years until graduation day for so long.
Life is changing very fast these days and if your dream is to swim with a shark one day you must have an open mind. At school, do not just bury your head in the sand and hope to get a job automatically after you receive your diploma. In life, do not be satisfied with that little job and think you have made it bigger.
Keep expanding your horizons - never settle in your comfort zone. If you come up with something out of the ordinary, then they have to re-think their position. In other words, keep your PIN ON ALWAYS.
2. Start thinking about buying or building a home early
Recent research has shown that the majority of Ugandans spend at least 30% of their income on employment alone. Now, let's look at this from a perspective. If you use 30% to pay rent, 30% to pay for your children's school fees, 10% for transportation, 20% for health care and return the remaining 10% to your rural parents… what do you have left?
In other words, until you can buy or build a home, most of your savings will run out and you will not be able to grow your economy fast. So think carefully, start planning for your future home today - otherwise you will find yourself trapped in a monthly credit cycle to survive.
3. Understand the concept of merging to make a long-term investment
Combined interest is the best way to build a sustainable future and it works if you choose to invest in long-term projects especially when you are young. Here is an example.
Juma, 20, is investing Ush.150,000 a month in an investment option that earns 10% a year. His minimum savings when he turns 40 will be Ush.104,595,000. At that point he may decide to stop making a monthly contribution of Ush.150,000 and leave Ush.104,595,000 to continue growing on his own as he focuses on other things in life.
Now calculate the sum of Ush.104,595,000 at 10% over the next 10 years to see how much Juma will be making worthless when he reaches 50.
Friends of Juma who spent their money at parties will probably persuade their employers not to send them to early retirement at this time. But Juma, on the other hand, will be more determined to retire early so that he can enjoy a more peaceful life because his money is working for him - because of the combined interest rate.
Examples of programs where you can raise your money include: Unit trusts, treasury loans and life insurance.
4. Save money
There are two ways you can create wealth. The first step is to give up everything you have and keep it for a long time. The second option is to increase your income continuously so that you do not compromise your health standards and still maintain a good amount.
The second option is the best you can take when you are young and full of energy. Make money by studying and gaining a new set of skills. Work hard to build your own popular brand so that you can easily market when you turn 30 years old.
In other words, this is the time to build your own brand: - Brand John, Brand Keivn, Brand Morisha, Brand Susan etc.
This is not the time to hide behind someone else's shadow! Because without a brand, you will not have much power to negotiate in the future so you will not be in a position to raise your income level properly.
5. Learn the science of stocks and financial markets
It is difficult to build wealth in savings and income alone. If you want to play in the big leagues you have to train with the big boys. Likewise, if you want to present the result of multiplication in your calculations, you must understand the science of monetization.
Taking the time to understand the scope of investment strategies such as Treasury loans, unit trusts, stock trading and trading is something that everyone under the age of 30 should consider doing. This information can be useful when a person wants to increase his long-term savings and secure his future.
6. Start a business
In life, there are two options for moving forward. The first option is to go up the business ladder step by step until you become a well-known CEO. This is a very difficult process to take right now especially considering how difficult it is to get corporate work in this country in the first place.
The second way is to build your ladder. If you are building a ladder you will not need to beg anyone to take the initiative. In addition, you will be able to move your ladder anywhere and whenever you want.
The Last Say
Starting a business is an easy way to build a ladder (which though it may take some time) that comes with its fair share of rewards over time.
My advice to anyone under the age of 30 is that you should start building your stairs early so that you have enough time to make mistakes and fix them. In addition, if you start early, you will have enough time to build a long ladder that allows you to touch the sky as no one else can.
You can choose to live 20 years like everyone else… and live a normal life forever. Or you can choose to be wise and live for 20 years as no one else… to live your whole life as a few people.
The choice is up to you. Choose wisely.
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