Financial Maneuvers at 20 Years Old

I never thought that my youth was filled with spending money like drinking alcohol or partying with "hot women" from night till morning. Then, I have to fulfill my life to buy new clothes or a new smartphone every few months or once a year. Then, you can buy a new car once a year or travel the world for a long time. The heaven on earth that some people run may be the wish of many people in the world. They want to spend time every weekend or every night.

You are free to dream anything as long as it doesn’t harm others. However, I feel that I am not a person who fits such a lifestyle. After all, I'm not a rich person and there are some controls or rules in life that I have to obey. I'm not talking about your religion, your culture or private matters. What I want to talk about is that there's a certain amount of money that we have to control and that we need to keep for the future.

Yes, of course. Wealth isn’t built by your parents or the generation above you. But, you also contribute to continuing that power in the future. However, not everyone is on the same starting line of financial amount. If you only have a sufficient amount of money or less than that, I believe that you really think twice about spending money on things that are not needed.

Before you regret the decision on your money, you must be wise about everything. Most young people their age of 20 years old are people who use their money for college needs. later, some of them also just started working as fresh graduates. Then as expenditure or purchasing power, they usually use the money to hang out with friends, buy clothes, try new food and drinks available in their city and so on. It is a small accumulation of expenses that will unconsciously swell if you calculate it in total per month.

If you don't stop it, then this cycle will continue to bind you in the future. Blame yourself if the recession will hurt you in the future because you never know what will happen in the future. So, do maneuvers or financial strategies that can balance your life in the future.

Don't always have to go with FOMO

What I mean by FOMO is Fear of Missing Out. People at the age of 20 years old are afraid of missing out on a trend. So, they are forced to buy something new. For example, the trend of gaming smartphones whose battery life reaches 24 hours. Your friends have it but you haven't bought it yet. So, if you want to be accepted as a circle of their relationship and recognized, then you have to buy that item so you can play together.

I feel this is a dilemma and am confused. But, you must make a firm decision within your financial means. Good friends are friends who value their friends, no matter when they have the same thing or not. So, be friends with people who are willing to accept whatever your situation is, I think that's a good friend. Don't forget also that you have to adjust your financial capacity if you want to buy goods.

Upgrade Your Life Skills

At the age of 20, you should be able to earn money, no matter how much. Because at least, it can help you and can release dependence on other people. For example, your skill in cooking a variety of foods might put you in the position of a chef in the future. Then, skills in processing computers and solving various problems in applications may be able to place you as a reliable programmer. You're not too late to start but here's what you should hold onto if you need money.

For those who are still in college and have not made money, you must finish college first to perfect your skills. Maybe, you can do a side business that doesn't make much profit. Don’t get me wrong, many successful people after leaving college continued their side business and managed to make a lot of profit from there. From that profit, you can save to a bank or other savings as much as you can.

Saving and Investing

An income from your job or business can be used to save and invest. Of course, you can spend your money but you need to limit yourself. You can save by having your own savings account or saving in the bank by placing a certain amount of money or gold (basically, saving in a bank is safer than other methods). If necessary, you must recognize the character, features and advantages of various banks in your city. So, you can feel the benefit from the programs packaged by each different bank.

For investment, there are many investment methods today from traditional ones such as gold, stocks, property, mutual funds or modern investments that have emerged due to technological developments such as forex and cryptocurrencies. For cryptocurrencies, there are also many methods you can try. However, you must use cold money. Just as an assumption that you are willing to give up the money lost for investment and no matter if this experiment you lose or gain.

For example, if you are a beginner in crypto you can invest and place your crypto deposit on staking carried out by the KuCoin exchange platform with a program called Kucoin Earn.

Another program is a crypto lending program where you place your money or crypto coins as a borrower. Then, you expect more coins to come back to you as a profit from your efforts to lend coins to clients in need on the platform. Platforms such as BlockFi, Celsius Network and Nexo are examples of easy-to-use and low-risk crypto lending programs.

In conclusion, that is what makes wise people look tough today, in the future and even into old age. If you consistently apply a lifestyle that adapts to your financial condition, then your life will be more stable in the future.

Image Sources :
1. Pixabay | merhanhaval22 (also as a lead image)
2. Unsplash | Jarritos Mexican Soda
3. Unsplash | Aaron Thomas
4. Pixabay | nattanan23