Many self-made billionaires, like Mark Cuban, started out in similar circumstances to your current walk of life, and in some cases, many of the self-made elites had worse off beginnings than you. The reason they are so successful is that they have developed an excellent work ethic. Mark Cuban shares his top tips for 20-somethings. It turns out that mastering these basic tips can pay dividends for your future self. You will be surprised at how simple these tips are — the top tips actually make a difference if you master the basics.
Never Underestimate the Power of Frugality
Sure you may have roommates in your 20-somethings, but take this time to pay off your student loan debt (if you have any), and save up as much cash as you can. If you have no family, dog, or car payments, take this time to work two jobs. Multiple sources of income are key. Where frugality comes into play is when you start to spend money defensively. Many millionaires and billionaires have amassed large fortunes due to their immaculate ability to watch where their money is going. Do not invest in anything that rots, depreciates, or rusts. Being frugal is one of the keys to building wealth. Don’t let the ‘keeping up with the Jones’s be an issue, having money in your pocket at the end of the day is king.
“It doesn’t matter where you live. It doesn’t matter how you live. It doesn’t matter what car you drive. It doesn’t matter what kind of clothes you wear, [and] the more you stress over bills, the more difficult it is to focus on your goals. The cheaper you can live, the greater your options.” — Mark Cuban
Take What You Can Get & Develop Your Side Hustle
In life you will have many opportunities to change your life. You have the responsibility to take the chances to make what you want to happen. You might not land your dream job right away, but that doesn’t mean you can’t appreciate providing value at a job you currently work at. If you work 40 hours a week, take some time do develop a side hustle which will improve your life in two ways: You will build essential business skills, and the work you do can become your passion that can turn you into a millionaire. Building your own company is a highly advised tool that can make you very wealthy – check into it.
When you find something you love, and the pay doesn’t matter, you’ve found the sweet spot to where your passion will pay dividends, and you will end up making a lot more money doing simply because your heart is in it. Business Insider blog contributor Richard Feloni notes that you need to prioritize your passion over your paycheck if you want to put yourself on a rewarding career path that allows you to thrive.
Be grateful for your current situation, and work like hell to make your dream come true. You will incur failure, but failure is only an indication of striving for the next big thing. Keep moving forward.
“If you love what you do so much that you are willing to continue to live like a student in order to be able to stay in the job, you have found your calling.”
— Mark Cuban
Be the Best You Can Be – In Any Situation
In your 20’s the majority of decisions you make will deeply impact your future, more so than the decisions you make in your 30’s and 40’s. Time is precious, and once you spend it, you can never get it back. Make a decision to be the best you can in any career, living situation, or relationship. When you put your best foot forward, there will be nothing to regret. Make the decision of excellence. When you do your best, you make it easier on the people around you to do what they need to.
If you’re working somewhere that is not your ideal career path, do your best anyway. When you’re outside of work hours, put in the time to develop your profession by doing your business development. Self-education will make you rich.
The above tips may be simple, but mastering the basics is key to your success. Starting in your 20-somethings with the right mindset and the initiation of developing your good habits will be the solid foundation for which you can succeed. Go forth and be amazing!
Views expressed in this article are the author’s opinions and do not necessarily reflect the views of Secure Single. It is intended for informational and educational purposes only. It is not investment or financial advice. James Bollen is the author of Thriving Solo: How to Flourish and Live Your Perfect Life (Without A Soulmate). Now available in paperback and for the Kindle on Amazon. Subscribe to Secure Single’s Substack for free!
A Single’s Guide to Budgeting
We’ve all been there, especially if you are a 20-something. You’ve lived with roommates long enough, and you now want to experience living on your own. Or, you’ve just broken up with your significant other and you don’t know what your next steps will be. In a tough job market with sticky wages, how can you afford to rent a place on your own? How you achieve this boils down to your planning and the action of working your plan.
Learn Your Budget
You need to know how much money you are bringing in, and how much money is going out. A lot of people think they have a handle on their money, but when they go to check their bank account, there is nothing in there.
A simple way to start is to get on the computer, whether your own or one at the library, follow these steps to get the ball rolling:
- Create a Gmail account and login to Google Docs.
- Open up Google Sheets and create a file called, ‘Budget.’
- Log into your bank account and import your transactions into Google Sheets. Here is a video on the process.
- Sort your transactions.
- Your first part of the budget will be your income statement. You will want to start making ways to build multiple streams of income.
- The second part of your budget will be your expenses. You want to list your fixed expenses first. Those are your rent, utilities, car and student loan payments.
- The third part of your budget will be your disposable income. This is the money you have left over for food, gas, and entertainment. Most people who are working to get ahead save 10% of their income and put it in an interest earning account. You will want to do your best to save as much as you can, especially at a young age.
- Compare your income versus your expenses. This is called a cash flow statement. If you are in the red, meaning your expenses are greater than your income, then you need to create a plan of action to increase your income and decrease your expenses.
Cut Your Expenses
You may have necessary items you need to pay for monthly, but there are a lot of items you can do without. It may be as simple as canceling your Netflix subscription or lowering your data plan on your phone. You might also want to cut the cord on your cable bill. If you are living with roommates, find a fair way to opt out. Ask your landlord if you can do extra work for free around the rental space to lower your rent. You can also ask for lower rent if you sign a longer lease.
Plan meetings with your friends once a week, versus multiple times a week and on the weekend. You will cut down your ‘eating out and drinking’ expenses. This will give you a little extra money to save while rewarding yourself once a week by allowing yourself to go out. To keep your food expenses low, eat before you go out, order smaller plates, and even stick to one drink – you can pace yourself by drinking slowly, so you will always have a drink in hand. Enjoy going out in moderation by allowing yourself one special night a week. It is necessary to have money in the bank for survival. Saving is a huge key.
Negotiate
One way you can work to cut your expenses is to negotiate lower prices and interest rates. If you have a student loan, shop around and see where you can find the best interest rates. Ask your current provider if they are willing to compete for your business. If you have an internet bill, ask for a smaller rate. See if you can cut your data back for a lower monthly cost.
Energy Bills
In some states, you can sign up for ‘Non-Peak Hours’. Through Xcel Energy, there is a sign up to do your laundry, dishes, and showering between 9 pm and 9 am which are the ‘Non-Peak Hours’. Your kwh usage is literally cut in half. This includes lighting and internet usage during the day. Your energy bill can be cut in half, and this will put more money in your pocket.
Save Money
Depending on your bank, you can set up automatic transfers to save your money for every deposit. Generally, you want to save 10% of everything you own. This comes from ancient scripts.
Related:
- The 50/30/20 Budget For Singles
- 50/30/20 Budget Versus 60/30/10 Budget
- 15 Habits To Build Wealth For Singles
Refinance
If you have student loans, you most likely can consolidate and shop for a lower interest rate. Companies like SoFi and DRB are helping students refinance their loans and get a better rate. To pay down your loans faster, take the extra money you squeeze out of your budget, and put it towards the principal each month.
All steps can help you get out on your own, and to afford a place of your own. It may seem hard to do right now, especially when you are a 20-something with low cash flow, but if you work hard at building additional income, paying down debt, and saving money, but you will be in a much better financial position to take care of yourself. stick to the steps above, you may be in a better financial position. Keep yourself financially literate and up to date on where your money is going. For more information on budgeting and getting out of debt,m check out Dave Ramsey.
The principal is simple: lower your expenses, save money, and work towards making more money to pay down loans. Not only will this help you build up cash reserves for yourself, but it will also allow you to have more money to go towards a single apartment you can rent all by yourself. Being financially independent is possible, plan your work, then work your plan!
Views expressed in this article are the author’s opinions and do not necessarily reflect the views of Secure Single. It is intended for informational and educational purposes only. It is not investment or financial advice. James Bollen is the author of Thriving Solo: How to Flourish and Live Your Perfect Life (Without A Soulmate). Now available in paperback and for the Kindle on Amazon. Subscribe to Secure Single’s Substack for free!
It is wise to save and invest money while you are single and have less expenses that a significant other and additional costs that a family can add. Decide to incrementally increase your net worth and the money in your saving and investment accounts while you are single to prepare to planned and unplanned future life events.
Pay Yourself First
Start by saving a part of your monthly income immediately after you receive your paycheck. The recommended amount is 20%. A simple way to do this is to automate the money that goes into your checking account and make the 20% of the money that is in that account to be transferred to your savings account. This makes it easier for you and makes sure that you actually put money into your saving account.
Plan for Emergencies
It is a wise idea to save money in case of an emergency comes up such as a car repair, an emergency surgery, or having to travel to after a family member dies to name only a few life scenarios. It is suggested that you have at least six months of income to pay expenses in case an emergency does come up or you lose your job. This emergency income that you saved for will help to maintain you while you look for a new job or must take care of whatever unknown life problem suddenly arose that you had not planned for.
Save More and Spend Less
Easier said than done. You have already formed habits and may be living a lifestyle that is beyond your current financial means. This is when having a budget and sticking to a budget is helpful. Do you really need to buy the hot fashion clothing? How about going out three times a week? Or, getting your hair or nails done at that fancy salon? You can cut back on spending by not choosing the premium option or shopping less, then the money that would have gone towards the more expensive option you immediately put into your savings account or to pay off any debt that you may owe. This way you put the money into your savings and make sure not to touch it so that you will see your money grow over time instead of spending it on things that you may not really need.
Get A Part Time Job
Adding an extra job may be something that you prefer not to do, but it can be temporary for as long as want to add some money into your savings that can later be invested in a portfolio that will give you a higher rate of return. Set a goal that you want to achieve such as to buy a new car or to put extra money away to prepare for an emergency. This is also a good option to increase your savings account given that the interests rates are extremely low with a low return rate to prepare for your future and any life goals that you want to achieve.
Certificate of Deposit
Once you have about $6,000 in your savings account consider looking into a Certificate of Deposit (CD). A Certificate of Deposit is a “savings certificate with a fixed maturity date, specified fixed interest rate and can be issued in any denomination aside from minimum investment requirements.” Once you set up a CD with a bank, you will be unable to access it according the length of time that you agree to. As a rule, the longer period will have a higher interest rate which will return you more money once the period ends. However, if for some reason, you do decide to take out the money that is in your CD for some reasons you will face a fine since you did not meet your agreement with the bank. It is best to follow the first steps again and rebuild your savings while you wait for your CD to mature. Once your CD’s term is finished you can either return the money to your savings, put it back into a CD, or invest your money.
Invest
Consider diversifying your assets into a mutual fund or create an investment portfolio. Investing in either of these two options will yield a higher rate of return than either a Certificate of Deposit or a Savings account will. If you are younger, invest in riskier investments according to your risk tolerance and the type of portfolio that you want to achieve your goals. In contrast, if you are older it is better to maintain a conservative portfolio since you do not have a shorter number of years to see the return on your investment and may lose some money in the riskier portfolio as the markets fluctuate.
Stick to Your Investment Plan
Do not touch your investment portfolio, unless you are a savvy investor and have a high-risk portfolio where you follow the market closely and know when to take out certain penny stocks or more speculative stocks. Come back to your portfolio once or twice a year to check out it is going overall and, if necessary, make some small adjustments. An investment portfolio is a long-term investment so do not play around with it too much unless you are familiar with how markets work. It is better to slowly grow your net worth over time rather than take a risk where you could lose it all by investing it in some bad stocks. Again, have a plan and know your risk tolerance.
Views expressed in this article are the author’s opinions and do not necessarily reflect the views of Secure Single. It is intended for informational and educational purposes only. It is not investment or financial advice. James Bollen is the author of Thriving Solo: How to Flourish and Live Your Perfect Life (Without A Soulmate). Now available in paperback and for the Kindle on Amazon. Subscribe to Secure Single’s Substack for free!
Learning the basics of money and the best practices for anyone, but especially for singles. This is because singles face a tax penalty for being single that society has rationalized as acceptable. There are a few basic questions that you should consider as you start to budget, save, and invest your hard-earned money. These different ways will help to increase your individual net worth over time, which will in return give you more independence and flexibility as a single.
Create A Budget
Budgeting can be difficult to do. At first, you will feel constrained since you may limit the amount that you go out or cannot purchase the latest fashion trend since you created a budget. However, you bank account and wallet (or purse) will thank you. Instead of thinking of budgeting negatively, think of it as an awareness tool that keeps track of your purchasing and spending habits so that you can change the course of your ship towards your destination when you find that your spending or saving is not going in the right direction.
There are two main ways to think about budgeting: long-term and monthly budgeting. Long-term budgeting and planning has a goal in mind. Do you want to budget and save for a house? Do you want to create a well-diversified portfolio? If you are interested in goals along the lines of those questions, then a budgeting tool that you could consider using is Mint. If you are just starting out with budgeting and want keep track of your dialing and monthly spending habits, You Need a Budget is another great resource.
What Are You Worth?
Your net worth is your total worth in the assets that you currently have. These will include savings, investment portfolios, property such as real estate, and any liabilities that you may have such as loans and debts. Make it a point to know your net worth and confront any problems that may be decreasing your overall net worth immediately. Keep track of your net worth. The goal should be to see it rise over time.
Debt
Debt is financial slavery. You will not be able to fully utilize your money and you will be unable to do with your money as you please until you pay off your debt. According to a recent report by the Federal Reserve Bank of New York that Millennials student debt “now compromises 69 percent of the debt side of their balance sheets.” For the Millennial generation, the majority have debt from college loans or from other loans that they decided to take out to pay for something instead of trying to save for the purchase or find other ways to get the money that would not result them being in debt.
Save
The general rule is to save 20% of all of your earned income. This follows the 50/20/30 Rule that says spend 50% of your income on essentials, save 20% of your income, and the final 30% is for personal use in your budget. But depending on what your financial goals are, you may decide to save more and decrease your discretionary monthly budget on nonessentials.
Invest
When you create an investment portfolio the goal should be that it will be diversified to include stocks, bonds, equities, bank notes, savings, etc. There are different options for how you can invest that will depend on your goals and your risk tolerance: conservative, moderate, or aggressive.
The main differences between these three portfolios is the amount of risk that the investor has chosen to accept. As the risk increases, a larger percentage of the portfolio is focused on stocks compared to less risky investments such as security bonds that make up the majority of the conservative portfolio. Depending on the markets and the stocks that were invested in the aggressive portfolio will result in a higher rate of return for an investor over time compared to the moderate and conservative portfolios. However, while the conservative and moderate portfolios will have slower growth compared to an aggressive option they will require less management and following stocks as they rise and fall.
Summary
It is important that singles understand and care about financial planning and all that it entails since this is your money. Money is powerful tool. Singles should value the freedom and adaptability that the single life offers. Singles will increase their independence by working to raise their net worth and pay off any debts that they may have from college. Begin today singles on creating and following a budget, pay off any debts that you be owe, and look into creating an investment portfolio that fits your risk tolerance as well as into your life goals.