Lifestyle
Achieving financial independence before turning 30 may seem unattainable to those in their 20s because they think that to be financially independent, they have to achieve millionaire status. When, in fact, it means being able to cover your expenses without needing to depend on your parents.
While it’s natural for financial independence to be a top goal of many, the path to achieving it may be riddled with challenges. But the good news is we want to help you on this path!
Here are 10 steps to put you on the path to financial independence:
Secure a job
You must be thinking, “that’s obvious”. We know it is, but it’s a prerequisite for financial independence, and that’s why it’s at the top of our list. What’s also important is to secure a job that will provide you with a steady salary and an opportunity to climb the career ladder because no one wants to stay in the same place forever! We’re not saying to find a meaningless job just for the salary, you can still do what you love and make money. So find a job that you feel gives you purpose and you actually enjoy doing.
Live within your means
We hate to break it to you, but you’re not rich, so don’t spend like you are! Our advice — maintain a lifestyle that matches your earnings. There’s no need to order the most expensive meal at a restaurant or purchase a cellphone that costs more than your salary, especially if an affordable alternative is available.
And remember, you can track your monthly expenses through the filter option on our mobile banking app to better understand your spending patterns to start spending smarter. So, don’t hold off on downloading the app!
Pay off your debts
Regardless of why you’re in debt, you’re not alone! And whether you owe money to individuals or banks, the important thing is to pay them back to achieve your goals faster.
So, try not to incur more debt and stick to a monthly payment plan to avoid late fees or interest. To make a real dent in your debt, it’s also best to increase your monthly payments.
Set financial goals for the future
“I want to become rich” is something we’ve all said at one point or another. And although it may seem impossible, it’s not. The more disciplined you are regarding your goals, the better your chances of achieving them. But remember to be realistic.
Also, don’t hesitate to consult with one of our wealth management advisors to explore investment options that will help you build your wealth to achieve your financial goals faster!
Improve your financial literacy
What’s more important than making money is knowing how to manage, invest, and grow it! So, you must educate yourself to make sound financial decisions and investments. Put in the time and effort to enrich your knowledge of money management, economics, and investments.
To get started, you can register for courses and watch videos related to these subjects or keep reading the Bank al Etihad blog!
Create a second source of income
Have you ever heard of anyone complaining about making some extra money? Neither have we! And lucky for you, we now live in a digital world that provides unlimited opportunities to earn money. People can freelance, do part-time work in the evenings from home, or use social media platforms to sell handmade creations. Our point is to capitalise on what you’re good at to achieve your financial goals faster.
Set a budget
Regardless of how much money you make, you should set a budget and stick to it. This is one of the most important steps to take because it will help you reach your financial goals.
If you don’t take control of your money, your money (or lack thereof) will take control of you. And beware of small expenses, because as the saying goes, a small leak will sink a great ship!
Save, save, and save some more
To achieve financial independence, you must save up. When it comes to saving, even a small monthly contribution can make a big difference to your future. And, of course, we would be remiss if we didn’t mention our savings accounts. If you don’t have a savings account, you can easily open one through our mobile banking app!
Invest in yourself
You are your most valuable asset. So, invest in yourself because it will pay off in the future. And at the risk of sounding preachy, we must urge you to continuously work on yourself and learn new skills so you can always have something to offer.
Don’t be afraid to take risks
Taking risks may be scary, but it has its benefits in the long run. Of course, losses are likely, but you can recover from them if they happen at a young age. So, don’t be afraid to move overseas for a new job, invest in stocks, or leave your job to start your own business because some opportunities don’t come twice! Just make sure to do your research and take calculated risks.
It may take you a while to achieve financial independence, but with patience and perseverance, you can. And although these steps may not make you rich, they will at least make you financially independent.
