7 Financial tips for Young Professionals
As a young and hardworking professional with dreams of taking over the world like The brain. Yours might not be world domination. You might just be trying to get a good bearing on your career.
I define young professionals as individuals who have left university not later than five years.
One major issue for you starting off the blocks very well will be your financial state better known as your "financial independence". Being financially independent will be one of your biggest desires (alongside Finding Bae) amongst other things.
Since your father is not a business mogul and you don’t have 30 billion in the account, then you really need tips on how to steady your boat so you don’t drown in debt. Paying a financial advisor is out of the question but you need tips which are concise, and reliable.
To be honest, these tips are also for me. I have learnt that knowing is not enough but consistent acting is key to change.
Here are 7 tips to stay afloat financially as a young professional. Brace yourself!
- Understand your Person
Finance is beyond money. Financially independent people understand who they and what they want. Gary Vaynerchuk regards it as self awareness. To know your person, you need to ask yourself deep questions.
i. Why do I want money?
ii. What do I need money for?
Self awareness is your most important attribute - Gary Vaynerchuk
Action Point: — Understanding your person and how you respond to money, it helps you start the journey with intent in mind. Understand the times when and where you spend a lot. This is the main work. This is the foundation. No foundation no building.
2. Have a Goal
Football would be a boring sport if there was no goal post. It would be 90 long minutes of 22 men running around a field for no reason.
Finance is similar. You must have goals so you don’t lose zeal. Have a clear intent and objective.
A major example. I want to get to the mall to get an air conditon for the house. The air condition is my objective while going to the mall is my intent.
The clearer the goals, the better the discipline.
It is paramount to have short term and long term goals which have clear objectives.
Action Point: — Make your goals as clear as possible. “I want to be rich is not a goal”
A good example is
Short Term Goal: — Be able to afford a Nissan 2006 model car in 6 months.
Long Term Goal: — Be able to buy an acre of land in 3 years
3. Stop Borrowing
This is a hard one when we live in a society where buy now and pay later is a norm.
Debt puts holes in any chance of having financial freedom.
No matter how skillful a sailor is, if there are holes in the ship, it will surely sink. We give excuses like "I can borrow from family or friends." Borrowing and not paying back (and when it does happen) gives you a bad name.
The major issue is not the borrowing but the purpose of it. A lot of big organisations today were built by taking loans from loved ones that helped them scale up fast. For capital intensive projects, it is permitted; apart from this, no other reason holds water.
Action Point: — Ask yourself, will borrowing bring back great interest or it will be a liability. If you decide to borrow, Sit down, review your finances and list various ways to pay back the loan. If you are in debt, you might consider speaking to the person you owe money on how you will pay it back. You can provide services that the return is instant. You could also save a certain percentage to to lessen the effect of the debt.
4. Have a Budget
Nations are not the only ones who need budgets. An everyday joe also needs one, else his financial state would be in a mess. You have heard the saying cut your coat according to your size.
Budget helps you cut your coat according to your material.
A budget doesn’t have to be elaborate, something as simple as a daily breakdown follow through. Budgets help you know where your money is going.
Action Point: —Find out where your biggest expense is abd evaluate them. Find ways to reduce it.
5. Discounts are Good
As a young professional, you must be attentive. You can’t just buy anywhere and anyhow. Look for the best offers around. Check when popular websites are doing sales or doing a special promo.
Why get an item full price when you can pay less?
Action Point: — There are websites that do price check based on your location. Search online for them so you can compare prices before you spend that money.
6. Start a side Hustle
You might say you are not a business person, but that’s not true. Everyone can trade. You don’t need a fortune to start a side hustle. Since you are working in an office, you already have a market. Pick an item that is not easy for your colleagues to get and offer them a competitive price for it.
Money is not passive. Money multiplies money.
Action Point: — My side hustle is writing for gmusicplus and other platforms. I also do social media for SMEs here in Nigeria. You could learn a skill or sell. You could sell clothing, fruits, toiletries etc. Just relax, look around and start. For these items, capital is very little.
7. Be a Giver
Being a giver is not a religious statement but a necessary asset if you want to stay financially afloat.
Giving frees you from the clutches of money.
No matter how much you have, your mind will always say “It is not enough.” You get so manyvthings free, breathe is one; why don't you give back. Dont wait to be as rich as bill gates. Giving is powerful and should be practiced.
Action Point: — You can give your time, knowledge. Giving is not only about money.
Conclusion
In addition, have a saving so you can have enough when investment opportunities come. No matter how small, make sure you save at least 10 percent.
Just remember, in your quest for a good career or world domination, just enjoy the process. The process is vital. Remember these tips will help shape your future. Consistency determines the results. I wish you a financially stable future.
P.S. If you have any tip you feel needs to be added, don't hesitate to put it in the comment below.
