20 year financial habits that will make you successful

Financial literacy should be fostered from childhood, so that a person on the threshold of the third decade of life can already freely navigate the financial market.

Roman Kotov, president of the Kotov Group investment holding company, says: “By the age of 20, you need to master all the basic financial skills: learn to“ live within our means ”so that expenses do not exceed revenues. By this age, it is important to learn how to prioritize spending and correctly correlate them with the life priorities of the current period. ”.

These right financial habits in 20 years will help you maintain and increase your own capital in the future and create a healthy attitude towards your money.

Habit number 1. Savings and Valuation

An unreasonable waste of money, expressing the inability to acquire really important things, can very painfully hit the still unstable budget of young people. Only continuous savings, expressed in the correct planning of expenses, will help to avoid a financial crisis..

An example of an unreasonable distribution of money is the story told by Elena Lobova, a financial literacy consultant at yourfinance.rf project: “A neighbor lived on the floor next to us, she was a fashionista, loved to dress beautifully and worked as a secretary in a ministry. She always came to us, because her bread ran out, then salt, and the store was already closed. Sometimes she asked for money in debt, because she did not have enough money to pay. She often said: “I bought such a blouse for myself, it was impossible to pass by!” “We never refused her, but it was always funny to look at her and for some reason I was ashamed”.
At a young age, people are characterized by impulsiveness that impedes the acquisition of good habits. Should restrain oneself, subduing momentary whims regarding the purchase of a thing you like. Before you give the money, you should evaluate whether the purchase really has sufficient value. This is one of the most important principles that should shape your financial habits in 20 years..

Habit number 2. Accounting for income and expenses

You need to be able to keep a budget at any age. Without a clear plan of expenses and incomes, it is impossible to determine the current financial condition and correctly distribute the incoming cash. This is the only way to achieve financial stability, because a person who knows how to earn and knows how much money is spent on certain needs every month, never feels all the “charms” of poverty.

The importance of budget management is also indicated by Zamir Shukhov, CEO of the Global Venture Alliance: “At any age, you need to monitor your finances. Fix what and where you spend, plan your budget. No matter how old you are, this habit will always be useful. I use special mobile applications, which allow you to see all the costs. At the end of the year, when you look at how much money was spent and where you spent it, eyes open to a lot and it becomes clear that things that used to be considered trifles accumulate. Keeping such an account helps a lot to be structural, it is better to plan a budget, to learn how to save some money for large purchases, and so on. If you use this habit, you can make informed decisions based on the data that you have. ”.

Habit number 3. Refusal of loans

Interest-priced financial institutions are a real trap for young people aged 20. Most often, credit is perceived as a kind of gift of fate, which allows you to easily acquire the desired thing without much effort. Understanding the disaster and the payment for the fulfillment of desire comes later, when a significant part of the income goes to pay off debts. In addition, in fact, a modest figure of the percentage of overpayment is an unbearable amount.

At the age of 20, when income is practically not a stable unit for anyone, it is better to refrain from acquiring loans. If you need to buy an expensive thing, it is better to postpone the purchase and start saving money. Such actions are entirely supported by Viktor Makeev, financial analyst at Gerchik&Co, saying that it’s not easy to form financial habits at the age of 20, because in your youth it seems that you’ll still be so far from retirement. The sensible way is to, already from the age of 20-30, not to get loans, but rather lay the foundation for future well-being.

But if it’s impossible to organize one’s own existence without loans. You need to learn about such a tool for obtaining funds as much as possible. And most importantly – loans must be given! Indeed, often people, using the help of financial organizations, do not represent the consequences and do not know the scheme of their action.

This is confirmed by another story told by Olga Us, a financial literacy consultant at your financials project. , for everything. And they take loans that are not going to repay. One young man of 27 years old, a taxi driver who was delivering me, said in a conversation that he would like to have his own car. I said that there is a state program under which you can take a profitable loan. To which he told me that he had a bad credit history. I asked: how much time has passed, yes says, was stupid, took in 20 years, now I don’t know what to do. Well, firstly, you need to find out in what condition everything is. Secondly, 7 years have passed. Credit stories are reset to zero.

Habit number 4. Accumulation

Refusal to receive loans leads to the need to form the following habit: to retain part of the income and save it, creating the so-called airbag. It is important not only as a guarantee of a normal life with the loss of the main source of income. But also as the amount due to which in the future you can make really large purchases, for example, buy real estate or a car.

Natalya Sevastyanova, trainer, coach of the Academy of Life Management, also speaks of the importance of savings: “It’s good to have some good habits. First: keep track of expenses and income. The second is to regularly analyze both expenses and revenues. The third is to set up an account and save at least 20% of income there. Be sure to praise yourself for any action regarding money! It turned out to save money, save money, manage it wisely – be sure to praise yourself! ”

Habit number 5. Smart investment

You should not count on one salary as a source of income, so financial habits of 20 years should include investments. In our turbulent times, the possibility of losing a job hangs on almost everyone. As a result, even at such a young and tender age, you should think about acquiring a stable source of passive income, the role of which, as we said above, may be investments.

However, young people due to lack of necessary financial experience should refrain from participating in risky transactions. Betting is necessary on a stable, albeit small, income. Viktor Makeev says about how to get it: “Loud advertising“ earn millions with us ”, pictures of successful traders simply cannot but affect the business vein. The truth is that speculative operations require very strong preparation, knowledge and experience, not excluding the emotional component. And as practice shows, such people remain, of all those who try their strength, only 5% ”.

Use a long-term perspective and a well-designed portfolio of stock market financial instruments. With proper diversification and selection of assets, you will experience minimal risks and overtake the bank interest rate at times. This way you can create good compensation in retirement age or achieve your major financial goals. Explore the stock market and classic financial instruments. If you see an advertisement like “Get $ 5,000 every three days, without investments and special knowledge”, pass by.

Habit number 6. Striving for a goal

At first glance, not related to financial literacy, the call to set goals and achieve them is, in fact, the key factors for achieving financial well-being at a young age. People who are full of ambition and striving to reach the heights, quickly learn to plan a budget, and build strategies for saving capital and increasing it.

This is confirmed by the words of Anfisa Egorova, head of the Obedient Money club: “The main thing that 20-year-olds should learn is to dream big, set ambitious goals, see opportunities in the world, not obstacles, and, most importantly, work out its technology to achieve goals. Whatever they are – large or small, you need to learn how to set them, find the best way to achieve it, plan tasks and are guaranteed to get results. Financial habits at the age of 20 can and should be developed. Indeed, this is how a person will be able to secure a good start and conquer a variety of heights. ”.

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