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Shenzhen Translation Bureau is its compilation team, focusing on technology, business, workplace, life and other fields, focusing on introducing new foreign technologies, new perspectives and new trends.

Editor’s note: Maybe you are just in your early 20s and you have just stepped into society. You still have a lot of student loan debt to pay. You do n’t know what to do, but do n’t forget that the Internet age we are in is full of a lot of opportunities, and all you have to do is actively look for opportunities and find opportunities to make more money or new jobs Just work for your goals while keeping your expenses under control. Don’t worry, the rest will gradually come into place over time. This article is translated from medium, author Tom Blake, original title How To Build Wealth In Your 20 ’s — What I Learned After Graduating College.

Image source: Johannes Plenio on Unsplash.com

Every time I see an article about how a young person or student should accumulate wealth, I feel mixed.

Of course, there are some reasons that are not completely unreasonable.

University tuition is rising, and student debt has been a worrying social issue. Excessive debt may make it difficult for many young people to save money when they enter the workplace.

However, I also think that looking at the world, there are not many opportunities to accumulate wealth.

If you live in the United States or other fast-growing countries, the job market doesn’t look shabby.

Also, if the local job market in your area looks inexplicable, then I think it’s easier than ever to make money online now, thanks to the development of technology.

Anyway, because many articles are a bit pessimistic, I would like to provide some suggestions on how you can accumulate wealth in your youth based on your experience in college and adulthood.

Next, let’s get back to business.

However, I would like to state that I am not a professional financial adviser. All opinions expressed here are my personal opinions and should not be considered as direct investment advice.

First, let ’s look at some statistics-the median net worth of young people

Data from BankRate.com shows that the average net worth of Americans aged 18-34 is close to $ 11,300.

At the age of 35-44, the average net worth has increased to more than $ 61,000.

Compared with the wealth accumulation of the previous 16 years, this number has increased nearly 6 times in just 10 years.

Of course, we can find a clear and reasonable explanation for this difference.

Our first job is often paid less than future jobs, and our net worth may be severely dragged by fresh student loans or debt.

However, this chart does show that, although it takes time to get rid of the shy situation in the beginning, once you start to act, your wealth accumulation speed will accelerate.

Look at the chart below, which lists why it is the most difficult to accumulate the first 100,000 yuan (and what will happen later):

You plan to spend an average of 7 to 8 years to save your first $ 100,000 (if you save about $ 10,000 per year).

In contrast, if you have a good return on the investment market, you can double the value of your wealth in 5 years.

Next we are going to change the subject, because I think it is important to realize that accumulating wealth in your 20s is a bit like a carnival.

However, once you gain momentum, there really is nothing to stop you.

How to Create Wealth at the Age of 20——Fight a Defensive Battle

The enemy of personal finance is bad consumer habits, heavy debt, or bad investment decisions. That’s why millionaires, celebrities, or athletes are always bankrupt.

If you want to focus on wealth creation when you are young, the first step is to fight defensively and reduce debt as soon as possible.

Make a budget and learn to live within your means

This principle may seem simple, but it is difficult to implement in reality because a study shows that only 24% of millennials know basic financial knowledge.

Learning how to budget, stay within your means, and develop habits of recording spending is the key to creating wealth. It’s really important to develop these habits early.

When I was in college, I had no idea how much I spent on alcohol, going out, and messing around. My first full-time job made me realize the importance of budgeting to maintaining a good financial situation for you.

If you do n’t budget, you do n’t know where your money is going.

You may have a rough idea, but it’s important to keep track of your actual consumption so that you can change bad behaviors before they become habits.

Fighting high-interest debt

Whether you have a student loan or a consumer loan, when you find your first job, it is imperative that you pay off the high-interest debt you carry as soon as possible.

With regard to how to deal with and resolve this type of debt, the relevant strategies and tools can be described as powerful, but the key is to have a real plan and a plan that can be implemented.

Prioritizing higher interest rate debt (such as credit card debt, certain types of loans) should be one of the most important things. The interest rate on these loans will greatly reduce your investment or saving capacity.

Live a simple life

When you graduate from school or find your first job, you may want to waste yourself or to enjoy a more dazzling lifestyle, but avoiding extravagance and waste is very beneficial to reduce the cost of living (This can speed up your debt repayment).

Focus on saving and making money, not on buying a better apartment, a new car, or other expensive assets that you don’t need.

The longer you “live like a student”, the more your wallet will grow!

Get out of the school and make money to invest

Once you graduate from school or start your first full-time job, it’s time to devote yourself to creating a life of wealth: making money and investing!

Start full-time work as soon as possible

I know that fresh graduates have a hard time finding a full-time job, but that doesn’t mean you can’t develop the habit of working full-time.

If you are part-time, there are many ways you can fill the extra free time. Due to the development of the Internet, the opportunities are unlimited from the gig economy to various online part-time jobs.

For example, I have a friend who just graduated, and he spends a week’s work time on web development, social media management, and food delivery with Uber Eats.

He makes a lot of money and works more than 40 hours a week. He loves life. Although only 25 hours a weekWeb development is much easier, but he also wants to make money, and he loves his job.

The moral of this story is: Do everything you can to increase your income reasonably.

Active job hopping

While gradual promotion in your first job is a reliable and more stable way to gradually increase your income, young employees can get huge benefits from actively changing jobs.

Waiting for a job offer from your current employer takes time, especially when your company’s development is relatively stable and you have to rely on seniors to retire, resign or be promoted to get higher vacancies.

In contrast, when you have accumulated one or two years of experience in your first job and mastered some valuable skills, you are likely to move to another better company and be able to Take the initiative in bargaining.

Do what you want-do it all

I like the early 20s. Of course, I don’t have many other life stages to compare, but there are indeed many advantages to being in your early 20s.

Here are some key questions:

• On average (in the United States), people do not have their first child until they are 26-27 years old. Therefore, if you are such a person, you will naturally have more time to pursue your own growth and career.

• You can take greater risks. Again, if you have no family, no mortgage, no more than 20 years of professional life, or no major commitments in your life, you can really do whatever you want.
  

  To make a long story short, if there are any stages in your life that you can really withstand and grow up, it will be in your early 20s.

  I know a lot of people who studied very hard during college to get “good grades”, but immediately after getting their first job, they became complacent and gradually became content with a constant environment and lack of challenges. .

  Do not do this.

  Of course you should work very hard in your first job, but at the same time you can do some side jobs and always make sure that you are constantly learning.

  As a freelance writer, I spend a lot of time building my own blog, but there are many other ways you can do it. Just find something that excites you, and then pursue it!

  Okay, you have reduced your debt as much as possible. In other words, you are already making money. Now let ’s talk about how to make money with money!

  Basic investment-credit card cashback and high interest savings account

  Few people in their 20s have huge net worth. This is true for me and most of my colleagues, considering you