Having a large income may not help you achieve true happiness. But it can indeed pay the bills, get rid of your debts, and make your life more comfortable and convenient. The earlier you start generating more income, the bigger your chances of building your wealth. Get to know some of the best strategies people use to do this in their 20s.
Don’t forget to invest in yourself
Many people find that investing is the fastest way to generate more income and build their wealth. But here’s a piece of unconventional advice for you. Instead of simply investing money, learn how to invest in yourself early. Focus on personal development, learn new skills, and find some you are really good at and make money out of it.
Think of it this way. Having much knowledge and experience in your younger years already gives you an edge over the others. This boosts your potential to snag better-paying jobs. If you continuously invest in yourself, you can start getting even better deals, grow your income, and start investing and diversifying your portfolio. Of course, you would need to be wise in handling your finances so you can comfortably afford a good retirement.
Aim for at least three income sources
According to Tom Corley, he learned in his studies that one habit that self-made millionaires have is their love for multiple income streams. According to Corley, 65% have three income streams, 45% have four and 29% have at least five income streams. They do this to mitigate risks. In short, in case one of their income sources fails, they still have others they can depend on.
If you only have one income, then your finances can take a massive hit in case you lose your single income source. The same goes for just having two similar income streams. You will soon find that having multiple sources of income is a better way to achieve your financial goals in your 20s.
Invest and seek professional advice
Time and time again, we find financial advisors giving talks, sharing their opinions, and teaching us tips on how to improve our finances. But when it comes to investing, many would tread the investing waters without a professional guiding them. If you want to start investing while you build your career, run your business, or focus on the more important issues, then what you need is professional fiduciary advice.
There is a reason why many rich and successful investors hire their own fiduciary manager. This is to make sure every investment decision made is in accordance with your best interest. They are required to report to you any conflict interest present and are accountable for the outcomes they bring. They aim to help you achieve your long-term objectives and enhance diversification in a risk-controlled and feasible manner.
There are tons of ways to start generating more income. But then, no matter how much income you managed to make, you will fail to build wealth if you don’t educate yourself on how to manage your finances wisely. Don’t just focus on making more money and start learning how to make better financial decisions.