Top Money Expert: This Is the Key To Making More Money in Your 20s
Written by
Jaime Catmull
Edited by
Katie Wudel
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In your 20s, you’re likely just starting off in your career and may not be making the level of income you want. If you want to quickly climb the career ladder — and earn more money quickly too — it’s important to be proactive.
GOBankingRates spoke with David Greene, host of BiggerPockets’ “The Real Estate Podcast” and author of the upcoming book, “Pillars of Wealth: How to Make, Save, and Invest Your Way to Financial Freedom,” about the best ways to earn more money in your 20s, plus more tips for people in this phase of life.
Boost Your Income by Boosting Your Value
Greene said the best way to start earning more money is to prove you are worth more money.
“Making more money is all about improving your ability to serve the marketplace,” he said. “It is breaking the mindset of ‘just showing up’ and calling that work. Approach every day like it’s the last day of tryouts and you don’t want to get cut. I promise, your employer will notice.”
When you show that you are capable of doing more than your current job description, you’ll often get the opportunity to do more.
“This leads to more responsibility being given to you and eventually, more compensation as a reward,” Greene said. “Don’t waste even a single day in the workplace.”
Stick to a Budget
While increasing your earnings should be a focus during this time, increasing your savings should also be a priority.
“Saving money is about budgeting,” Greene said. “Build a budget, stick to it, and reward yourself with meaningful relationships and activities — not necessarily the things that cost a lot of money. Beach days, hikes, and bike rides are all low-cost activities that are very rewarding.”
Get Out of Debt ASAP
It’s not uncommon to have debt in your 20s, especially student loan debt.
“There are two ways to approach student loan debt, or any kind of debt for that matter,” Greene said. “You can spend less money and pay them off faster, or make more money and put the difference towards the loan principal. I advise young people to do both, especially if they are unmarried or without children.”
Buy Real Estate as Soon as You Are Able To
While you may not be able to afford real estate right now, Greene recommends getting involved in real estate investing as soon as you can.
“Investing in real estate for the long term will build wealth over time,” he said. “This wealth can then be used to pay off student debt and start you on the path to a life of increasing income and growing value to the marketplace.”
Don’t Waste This Decade
It’s tempting to just view your 20s as a time to have fun and enjoy your newfound freedom, but this is also a time to establish positive financial habits that can help you for years to come.
“Our 20s are a time when we can focus on building skills, saving money and acquiring the tools that will lead to a higher income in the future,” Greene said. “Don’t squander this time with fruitless endeavors. Nobody loves debt, especially student loans, but this problem can become a motivating factor in helping younger folks stay focused on building the value they bring to the marketplace. I advise people to take a three-pillared approach to wealth building: make more money, save more money and invest the difference in assets that will appreciate over time.”
Gabrielle Olya contributed to the reporting for this article.
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