Invest your money in your 20s, is not a popular opinion. Even, when you begin to earn a little money. Peer pressure will suggest you spend it on women and drinks. “After all, I still have time”
If you’re in your twenties, I believe you should still be in your parent’s house. Some may be living on their own.
The point is, you have free food and a roof above your head. These are very important.
Again, if you’re in your 20s and you’re already earning, stay with me as I inform you on how you can increase your net worth.
Different Ways to Become Wealthy.
Entrepreneurship/business is not the only way to make and invest your money in your 20s. The truth is entrepreneurship is one of the hardest ways to make money.
Is it worth it?
Yes & No
2. Career or Skill Acquisition
Having a career path is another way to become wealthy.
Tony Elumelu went through this route. Most of these big companies like Indomie, Golden Penny, Dangote, etc have MD/CEOs
These MD/CEO see the day-to-day activities of the business and report to the Owner.
Most of them earn as high as N400 million annually.
It is not only big companies that employ MDs.
Understand How Money Works
You have to understand how money works before you become rich. Those who got rich by lottery, ask them where the money is after 2 years.
Money is the end product of the value given.
For people to give you their hard-earned money, you have to solve their problem.
For instance, you bought a phone with the money you worked for because you needed to stay online. To connect with friends, classmates and to be reachable when called.
Someone created such value which you paid him some money. If the phone spoils beyond repair tomorrow, you will go and exchange your money for a new phone again.
And the same applies to over 10,000 users of such phones.
The producer of the phone keeps making more money. As long as he keeps giving you and other 10,000 users value for your money.
You must invest your money in your 20s to enjoy your later years on earth.
However, if you don’t have any source of income yet, you need to have one before investing your money.
Any source you choose, you have to learn from an expert.
Sell a Product or Services
Don’t go the wrong way of trying to figure out things yourself.
Here is a Similar Story
It has been about 2 years now since Harry left our company to start his betting shop business.
I can recall having an extensive discussion with him to think about the step he was about to make.
He felt he had figured it out. Little did he know that fantasy is sweet until you face reality.
Before Harry left our company to start up his business. He had saved a huge percentage of his salary for four years while working.
Not up to 3 years when Harry left our company, he called me to know if there was any job vacancy in our company.
I was surprised, his tone was not fine and I inquired to know what happened.
I learned that he didn’t have enough field information about the business. He did his budgeting according to information gotten from blogs.
So many unforeseen costs, employees stealing money, accountability issues, and the wrong location of one of his betting shops became a problem. Although he had miscellaneous, yet it wasn’t enough.
First, Harry opened 3 betting shops in different locations.
He massively employed people without generating income yet. For over 6 months he paid them from the business capital, not revenue.
PS: My friend’s real name is not Harry. It wouldn’t be fair to mention his real name.
Why Am I Telling You This?
There are a lot of people like Harry, who are impatient in their dealings and have limited information about the venture they are entering.
To them, attaining a goal is straight forward but little did they know that patience and not going into the venture immediately after conducting your feasibility study is a business strategy itself.
They let the excitement of achieving their goal cloud their judgment and ability to make the right decision.
Perhaps, after reading several blogs on how to make money or how to invest money in your 20s they feel overwhelmed by the new information received.
Don’t get me wrong, there is nothing wrong with reading few blogs or watching videos on how to invest your money in your 20s.
A lot of successful people are out there who never read a blog or watched a video about how to invest their money.
They went through The School of Hard Knocks.
However, they had a mentor. Some went through apprenticeships.
Point is, pick the practical information and apply them in a little way. If it works, you can then scale it.
Results Are Not Typical.
How it worked for me may not be how it would work for you.
Start little, figure out what works for you, and scale it.
Everybody dreams of, well, not everybody rather some people dream of having financial freedom. And you can’t have financial freedom when you still have someone you call “Boss”.
So a lot of people jump into being self-employed or do business without considering what could go wrong.
Self-employed is any income stream that can’t make you money while you are not around. Let’s say you own a shop and you suddenly got sick.
You will have to close your shop for the period you are not feeling fine, to treat yourself.
Another example is, if you are an Engineer or contractor, if you fall sick or travel, your business won’t be active, else you don’t have a contract at the moment.
In business, many people have failed not because they are not hard-working nor smart, but they don’t have the right information to start, build, sustain and scale a business.
Invest Your Money in Your 20s
If I were to start my financial journey today without connection, I will focus on generating money with acquired skills. Let me put this in a better perspective.
Let’s say I come from a poor background, no connection, no wealthy Uncles or Aunties, I will search for a high-income skill that rhymes with what I love doing, and develop such skill.
It could be Copywriting, affiliate marketing digital marketing, web design, etc.
Rhymes with what you love doing: According to Naval’s Escape Competition With Authenticity when you choose a skill that you love doing, it will make you escape all the competition because you’re authentic. And we all are unique in our ways.
If you jump out first to start up a business, many chances are that you will fail and go bankrupt.
And at that point in your life, you have no experience or understanding of how a successful business should run.
The Igbo Apprenticeship
The Igbo apprenticeship system is about serving a Master on a particular kind of business for 3years and above.
The purpose of serving a Master is to learn how the business works
And at the end of your apprenticeship, you will be settled by your boss (popularly known as Oga) with some amount of money to start up your own business.
Now you have learned the skill of running and managing a business, and you now have the capital to kickstart it.
What if the Igbo apprenticeship system is not for you and you don’t have such a system in your country?
Does it mean you won’t stand a chance to venture into any kind of business you feel can help the world?
The answer is simple, No.
One thing about money is that there are different ways to be wealthy.
Apart from the Igbo apprenticeship system, there are over one million ways on how to make money or on how to invest your money in your 20s.
You Can’t Negotiate A Better Deal With An Empty Stomach
To invest your money in your 20s is good. However, the majority of those in their 20s don’t have the emotional, knowledge, and financial capacity to invest.
If you start with skill acquisition and begin to earn money. A part of your income should be going to your side business.
If the business fails, you won’t go down to zero, like Harry.
Using your acquired skills to make money, and setting up a business by the side is popularly called Side Hustle.
Skill acquisition is a way of being on a safety net while building a business or acquiring wealth.
Who said some of these MD/CEOs don’t have side hustles?
If your side hustle eventually turns successful, you only need to put in more money from your income.
This time, you’re investing more money to scale it.
If you cannot run your business and earn through your skills as well, you can employ someone to manage your business for you.
Remember the skill you learned was born out of what you love doing. You are ready to stay on it for as long as, 10, 20, or more years.
When your skill and business are earning you money, only then can you start to preserve your capital or build net worth.
Preserving your capital is quite a different game and if not played well, you might lose all your money.
Real estate, Venture Capital, Stocks, and Cryptocurrency are a means of preserving one’s wealth. More on this later.
- 1. Get a skill.
- Earn money from it.
- Save part of your income to enable you to invest in your side hustle.
- Use profit earned from your business to build more businesses or buy the equity of other businesses.
If you want to go the business route, find and work for an expert in the industry you want to specialize in.
It is always easier said than done, but it is not impossible.
PS: To be successful in any industry you find yourself in, you need to learn from the experts.
Affiliate marketing is not excluded.
To be a successful affiliate marketer you need to be trained by an expert, who would give you the right tools and practical information to make money from affiliate marketing.
Click here to learn affiliate marketing