There are a lot of young people, who wonder about the question,
“How to build wealth in your 20s?” It is something that is understandable, considering that money is one of the most important things in the world and plays a major role in maintaining a good standard of living.
While there are certainly plenty of strategies that can be employed for the accumulation of wealth, one of the best ways that people can build wealth in their twenties is by simply getting a good job.
The reason for this is that unlike starting a business or something similar,
all you need to do to get a job is to simply get the appropriate skills and they
will be in a position to get hired by a company. It’s a much surer way of
getting a steady flow of income, as opposed to starting a business or
anything else that might take a long amount of time.
This is in fact something that has been traditionally chosen as a path for
building wealth as well as earning a living, due to the fact that not everyone
will be in a better position to start their own business or earn money in any
other unconventional manner. In fact it can be said that most of the people
who work today are working in a job and will probably do it until the day
Having said that, not every job will pay sufficient wages to allow wealthbuilding
of wealth. On the contrary, most jobs pay nothing more than the
bare minimum that one would need in order to sustain a living. It is
because of this that when one makes the choice to go for a job, one chooses
a profession that pays them a good amount of wages that are capable
sustaining a high standard of living.
Coming to the actual profession that people will be going in for, there are a
couple of choices that one can select from that will pay then a good wage.
These jobs come under the category of White collar professions, which is
just another way of saying that they are jobs which require people to use
their brains. They require the use of skills that involve intelligence and
creativity, as opposed to physical strength and manual labor.
This is something that is in stark contrast to blue collar jobs, where the job
that needs to be done requires more of physical strength as opposed to
mental capabilities. These jobs include everything that comes under the
category of stem professions. If one can make the choice to go in for a
degree in an STEM field, and get good at the skill set de have chosen, one is
sure to get a job that will pay them well. Some examples of such professions
include doctors, nurses, accountants, engineers, etc.
It should be added here that not all blue-collar jobs pay a low wage. In fact,
there are a lot of blue-collar skills that pay wages that are well above what is
made by white-collar workers. This would perhaps take a bit of searching
but as a rule of thumb, it should be understood that generally speaking, one
is far more likely to get higher wages as a knowledge worker as opposed to
In all, every single person in his or her twenties will find that getting a job
will probably be one of the best ways we can start on the path to building
wealth. But one should remember the fact that this will prove to be a
success only if people go in for white collar professions and not blue Collar
How to build wealth in your 20s – Saving
Saving money is never actually thought of a sum method to build wealth.
However it can prove to be an excellent strategy for building wealth if it is
done in the appropriate manner. It is perhaps one of the best answers that
one can get for learning how to build wealth in your 20s.
This is an especially good strategy when it comes to those who are looking
to build their wealth and are in their twenties. In fact, saving can be an
excellent strategy for those who are young, compared to those who aren’t
due to the leverage of time, which will be explained shortly.
The way that saving works is quite simple to understand if people know
how the banking system works. One of the principles of modern day
banking is the concept of interest. It is through this principle that much of
the wealth building occurs. The principal of interest is quite easy to
understand; any money that is kept in banks or other financial Institutions
will yield a certain amount of money after certain period of time. This
money in turn comes from the loans that are lent out by the banks two
other parties, under the condition that it is paid in full, along with some
extra amount of money based on a fixed percentage of the principal
amount. This extra amount is referred to as interest, is shared between the
bank and the depositor.
When it comes to the amount of interest that is earned, the exact yield on
interest is largely based on the amount of money that is deposited and the
time that it is left in the possession of the bank. While the first factor can be
independent of age, the second one isn’t to a very large extent. On the
contrary, the more the amount of time that passes, the greater will be the
accumulation of interest.
Interest can be used to one’s advantage if one knows how to engage in
proper financial planning. If one can take proper advantage of the interest
system that is currently in use across banks and other Financial
Institutions, one can look forward to a great amount of wealth being built
especially in the long run.
Only disadvantage of this system is that the wealth that is created, to grow
in an extremely slow manual unless the amount of money that is deposited
in these institutions happen to be an extremely large sum.
Coming to the actual interest, it can be done in a multitude of ways. Some
of the different ways in which interest can be earned are savings account,
fixed deposits, certificate deposits, peer-to-peer lending, etc.
Those who are in their twenties can especially take advantage of the time
factor, due to the amount of leverage they have over those who aren’t of
their same age bracket. The amount of time that is available will allow for a
greater amount of interest to be accumulated in the long run, due to the
compounding factor of interest over an extended period of time.
As a whole it can be said that saving money is how to build wealth in your 20s and is an excellent strategy to build wealth when you are young.
How To Build Wealth Through Starting A Business
Starting a business is perhaps of the fastest ways the people can build
wealth. It is possible in fact quite literally get rich overnight, by starting a
business. And the best part about starting a business is that, it is completely
independent of how young or old you may be. This is in fact one of the most
efficient ways in learning how to build wealth in your 20s.
The reason for this is that today business works in generating wealth
different from the way that jobs work. The way that jobs work is on the
principle of exchanging one’s time. Businesses on the other hand, work on
the principle of exchanging value for money instead of time.
The advantage that businesses have over jobs is that they are independent
of time. While it is necessary to devote a certain amount of time to run a
business, the returns on it are a lot higher than what it would be should the
same effort have been put into a job. In other words, there is no upper limit
when it comes to the amount of money that is made in a business, while a
salary is capped at a fixed amount that is paid out at the end of the month.
Coming to the actual process of starting a business, it is something that can
be quite difficult to get established in. This is because most businesses
require a great amount of startup capital, which will not be available for the
common man. However this need not be something that is of a
discouragement to do was interested in becoming an entrepreneur. On the
contrary, there are plenty of where is that one can raise funds to start the
business. Some of the most common methods include:-
Banks and other Financial Institutions
Family And friends
Profit from existing businesses
There are certainly a lot more sources of finance then the ones which have
been mentioned about. The ones that have been mentioned however
happen to be the most commonly used methods of raising funds, when one
is interested in an entrepreneurial venture.
With regard to the actual functioning of businesses, it is easy to understand
how it works from the top to the bottom. Businesses work on the principle
of solving problems that people face in their daily lives. In other words, the
way that a business makes money is by making things a lot simpler than
what it used to be before to the masses. If a business is capable of solving
the problems that people will be having in the everyday lives, it can look
forward to a great amount of money being made over the short as well as
the long run.
There are a lot of people who have the fear of incurring a loss. This is
certainly a possibility, as business ventures can result in losses if one is not
careful. But it need not be the case for most part, especially if proper
financial planning is undertaken. This is another way on how to build wealth in your 20s.
As a whole it can be summarized that starting a business is perhaps one of
the fastest ways that one can accumulate wealth, regardless of whether they
are in their twenties or for that matter have already retired.
How Discipline Can Help To Build Wealth
One of the best ways that one can build a business is through the
application of discipline. This is especially important for those who are in
their twenties, due to the fact that they have a great amount of time to
leverage when it comes to building their wealth.
While most of the techniques that are utilized in the building of wealth
happen to be practical advice on the accumulation of wealth, discipline is
something that will go a long way in furthering the understanding and
comprehension of how to build wealth in your 20s.
The way that discipline helps in building wealth is quite simple and easy to
understand. Much of the actual wealth that is generated is of no use to a
person, unless he’s in a position to properly manage it. On the contrary,
there is very much a possibility that one’s earnings will end up getting
squandered or spent in an illogical manner without the proper amount of
Coming to the actual activities that involve financial discipline, there are a
few of them which need to be taken quite seriously in one’s everyday life.
Some of the most important of them are as follows:-
Living below one’s means – in simple terms is refers to the way in
which one lives the life, where the amount of money that is spent is a
lot less than what is earned. This practice office for a great amount of
money to be saved, especially in the long run.
Budgeting – budgeting refers to the idea of allocating it fixed amount
of funds for particular purposes; with the conditionality that the
money spent on these purposes does not exceed what has already
Control of impulse spending – this is just another way of describing
money being spent without any proper planning, due to a lack of
control over the funds that one maybe having. The money over here
gets spent due to factors such as desire vanity curiosity greed and so
Investing – this refers to the allocation of funds into the purchase of
assets and wealth generating businesses. Investing can help in one to
grow wealth in both the short as well as the long run. This is one of
the best kept strategies of the rich, acquisition of assets as opposed to
Acquiring Financial Literacy – This is something that isn’t related to
the concept of general literacy. General literacy refers to the ability to
read and write. Financial literacy refers to being literate when it
comes to the handling of finances and its judicious management in
one’s daily life. As much as it might sound like something that is
rather obvious in nature, the fact remains that much of it is never
taught in schools, universities or anywhere else. On the contrary, the
concept of financial literacy is something that has to be acquired on
one’s own through the use of books, magazines and the internet and
While there are certainly plenty more strategies in which one can build
financial discipline, these are some of the best utilized methods in exercise
and discipline when it comes to finance.
As a whole, in addition to focusing on building wealth through such means
have businesses and jobs, it is important to acknowledge that financial
discipline is also an important factor in growing wealth getting rich in one’s
5.) Immigrating To A Better Economy To
Building wealth is something that people across the world would love to
engage in. However, it is not always possible depending on the place that
one is currently residing.
The reason for this is that, it will take a certain amount of economic
development for a country to achieve, before people can start aiming for
riches. As a result of this, people who come from poor countries are at a
relative disadvantage, when it comes to finance. The hardest affected are
perhaps youth who are in their twenties, who don’t have the opportunities
to take advantage of and come up in life.
This however need not be discouraging for those from developing countries
wondering how to build wealth in your 20s. There is always one option
that is always open for those people who have the determination to get rich
and build wealth; and that option is immigration.
Immigration in simple terms refers to the movement of people from one
part of the world to another. This is in fact something that has been taking
place across the world for a very long time; people have been migrating
from rural to urban areas life ever since the dawn of the industrial age.
These days however, the moment of people is largely concentrated in the
form of migration from one country to another.
There are a lot of reasons for this happening in today’s world, but one
simple way that it can be summarized is the concept of ‘demand and
supply’. For quite a long period of time, developed economies have had an
issue of low birth rates, which has resulted in a smaller workforce over the
past several years. In addition to this there is also the issue of the taxation
system which is burdened by a lack of taxpayers. Last but not the least, is
the issue of a shortage of skills in the developed world for specific jobs,
resulting in vacant positions that need to be filled with foreign workers. All
of these could be described as the ‘demand’ side of the equation.
Coming to the ‘supply’ side of the equation, developing countries often have
the advantage of highly skilled workers, who unfortunately do not have the
means to get employment. In addition to this, there is also the issue of low
or moderate wages in comparison to the jobs available in developed
countries. There is also the issue low standard of living, caused by the lack
of economic development.
If one can look into the demand and supply side of the equation, it becomes
quite clear the system is rife for immigration developing to the developed
Today, there is an ever increasing demand for skilled labor across multiple
developed regions of the world, all of which are severely lacking in the
necessary labor force. Young people are especially at an advantage due to
the fact that they belong to an age category that are highly preferred as
potential immigrants and generally considered over those of other age
It should also be added here that the potential for immigration isn’t
something that is limited only to those people who are skilled workers. On
the contrary, even those people who are into starting businesses can apply,
albeit with the disadvantage that they may not have the necessary capital to
get started with their business in a foreign country.
As a whole, people who are interested in how to build wealth in your 20s taking advantage of this demand and supply equation, can look forward to building a great amount of wealth
if they play their cards right. Those who are in their twenties can take
advantage of this as it could be an excellent avenue to start getting rich.