6 Financial Advises that Could Have Made Me Financially Independent in My 20s
Financially independent is everything that everyone would have imagined in their 20s. Everything is possible as long as you can visualize the idea and if you knew, what to do in order to become financially independent person.
I dreamed to have my own money, since very young age. I wanted to buy many things and visit many places with my own money and the only regret is that there was none to guide me through my life and I found hope in story of successful people with the same dreams.
By the age of 20, I already had changed many jobs. However, there are other smarter ways to go around with this financial mess.
1. Report Your Rent to Boost Your Credit Score.
If you are living in a property you rent, it is possible to report your rent to credit bureaus, UK, US this can also be available in other countries around the world. The idea here is that if you always pay your rent on time this will help you boost your credit score by certain percentage depending on your local financial institutions and open a door for you, towards your financially independent world. Be aware that this might back fire, if you do not pay your rent on time and could actually harm your credit score.
2. Get a Credit Card and Use It the Right Way
I know most of you might close this page right away but if you stick around and think about it and do the math yourself this is actually a good idea to improve your life. You should be aware that this part is very tricky and there are many possible scenarios, how you could screw it up in the first couple of months.
Younger generation would use their credit card to fund their extravagant lifestyle and the main fuel for that desire is the social networks.
The older generations on the other hand uses their money to fund holidays and refurbishments. The idea is to use the need for those necessities to build up your credit score. Work up a budget for your monthly expenses and stick to it very strictly. This is the part many people would fail and understand the psychology of credit card wrong. It is very easy to spend given money, so please be smart about the opportunity.
3. Credit Inquire, Only When You Are Sure
It is true that the credit inquires could negatively influence your credit score. This can be very damaging for credit newbies. Do not be childish and expect everything to be done for you. When you are shopping around for something and there is the possibility for credit. Before inquire a credit, you have to do your own research to make sure that this is the right move. Do the math and use it, to open your financially independent world, when your credit score is pumped.
4. Financially Independent, Equals Investment
Most people would run away, when they hear the word investment. I was running myself with my ears blocked. However, only the lack of knowledge and insecurity made me behave like a coward. Having figured out the credit score already, you can now think of potential ways of investment. You do not have to be super rich to invest. Not only Warren Buffet can invest and become a millionaire. Now, I will not guarantee that you will become a millionaire overnight. But it is also possible. Bitcoin and its extreme volatility on the market at the moment makes it very desirable choice of investment.
There are other much easier and secure less risky ways of an investment for you to gain that ticket for your financially independent world. You could buy a house and rent it out. The world’s most successful people have gained their wealthy name thorough property investment. You should not be afraid to work it out on a piece of paper and give it a second review with a friend or someone, who has more experience.
5. You Should Definitely Have a Plan “B”
Studies shows that 72 percent of the people only have approximately $ 1,000 in their bank account with the title “savings”. Now this is not enough in the event of something bad happens. You should always aim to save a little more. This is in case unpredictable events appear along your master plan.
6. Check Your Math Several Times.
Being Financially independent does not mean to work or rely on each monthly pay check. It fact, you have to make sure that your money is working for you. Every business venture requires more less some initial amount as an investment. The option to choose a credit card is not the only one but one of the fastest if you are on a rush. However, you should always double check your calculations and make adjustments accordingly. One of my greatest mentors in life is the failure. Do not be afraid of failure, because sometimes this is the only thing that holds you back from your financially independent world.