5 things Young Professionals can do to build wealth
Ahhh adulting, one of the things every college graduate has to go through. Adapting from barely making it to comfortably paying bills and surviving without your parents help can be quite daunting. There’s enough pressure on you as it is. You’ve received your degree, accepted an offer from your “dream” job, and just signed a lease to room with a couple college buddies. You’re ambitious and ready to take the world by storm! However, there’s one thing you’ve forgotten, how to handle your money. While you’re splurging at the bar and hungry for some late night tacos it begins to seep in, “Man, I really need to start saving some money”.
As each weekend passes, you continue to splurge on bottles (and models) and have no idea what you’re going to do with the rest of your money. No more! I’ve created 5 things all young professionals can do to build wealth. Just thank me later.
Create a budget and save money
Creating a budget allows you to take control of your money. It also helps you monitor and analyze your spending habits. On top of that, you’ll know how much money you can save. Saving money is the best “adulting” habit to get into early; you never know what could happen in the future. Everyone loses a job at some point in their career and it’s smart to save at least 3-6 months of expenses to create a good safety net. Don’t know where to start? Mint is a great tool to help you budget. I use it to monitor my spending to create realistic budgets. Need help in saving money? Here’s a neat trick I use to save hundreds while sleeping, click here. Don’t forget to contribute to your retirement fund.
Open a 401(k) or retirement plan
When you start working, employers typically offer a 401(k) matching plan. It’s imperative you open a 401(k) account and contribute as soon as possible (don’t know what a 401(k) is? Don’t worry I’ve got you covered, click here). When you contribute to your 401(k) I want you to think of your 65-year old self and how he/she will live. Do you want your 65-year old self to live comfortable? Or like how you did in college? Eventually you will stop working and you’ll have to live off of something, and chances are it won’t be social security. On top of that, you’re leaving free money on the table! (What free money? Where? click here). If you don’t have a 401(k) plan you may have a 403(b) plan. If you have neither you should open an individual retirement plan (IRA) which will help you save for retirement and receive tax benefits! Either way, you have to invest in some way shape or form to retire.
Period. If you’re not investing, you’re money isn’t working for you. Let your money work for you! Need some help getting into the investment game? Here you go: click here. Boom! Now you have the resources to get started. Want to make more money?
Start a side hustle
Want some extra cash in your pocket? Gaining a side hustle is the best option you have. Unfortunately you’ll be working more, but there are only so many choices that will put a substantial amount of money in your pocket instantly. There are tons of freelancing sites out there. Find one that matches your background. Here’s a list of resources to check out:
Mentor a college student
Last, but not least, always pay it forward. Whether you believe it or not, you have already become successful. You were able to navigate college, obtain a degree, and have a full-time gig. Use that knowledge to help others! There are probably several golden nuggets you wish you knew during college that would have made things easier. Pass it on to college students that look up to you and elevate their lives!
As a young professional, we are in the ultimate sweet spot. We have money and a ton of free time compared to others that are well seasoned in their career. Use your money and time wisely to get on the right path in building wealth. Do you have any tips or comments young professionals can do? Feel free to comment below!