I Asked ChatGPT the Best Habits To Grow Net Worth in My 20s
Written by
Brooke Barley
Edited by
Jenna Klaverweiden
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Growing your net worth is a marathon, not a sprint. If wealth is a goal, it’s best to be proactive and start taking steps as early in your career as you can.
Even though a lot of us are still figuring out exactly what our career path is going to be in our 20s, we can still start to build habits that will help grow our financial worth. Here are ChatGPT’s most effective recommendations.
Also see what would happen to the economy if every American had the same net worth, according to ChatGPT.
Create a Strong Foundation
It makes sense that if you’re wanting to perfect your finances, you need to know how to walk before you can run. ChatGPT recommended that you begin by building good money management habits. This includes tracking your income and expenses, living below your means, building an emergency fund, and paying off high-interest debt.
ChatGPT recommended having three to six months’ worth of expenses saved up to keep you from having to go into debt if your income were to suddenly take a turn.
Start Investing
Once you have the basics down, ChatGPT said to start investing your money ASAP. Your first resource for this is often a 401(k) plan through your job. This is especially valuable if your employer will match your contributions. If this isn’t available, open a Roth IRA account that you can contribute to. Even a little bit goes a long way, especially if you start as early as your 20s.
ChatGPT highlighted that, when it comes to investing, consistency is key. “Automate contributions monthly so you don’t rely on ‘timing the market,'” it said. This way, no matter what happens in stock fluctuations, you’re growing your investments. Since you have time on your side in your 20s, ChatGPT suggested investing in growth assets like stocks, index funds and exchange-traded funds (ETFs), which it pointed out will outperform safer assets long term.
Expand Your Earning Potential
If you have more money coming in, that’s more money to invest that will compound over time. ChatGPT proposed looking into courses and certifications that could raise your salary potential. It also said to negotiate for a raise when you can, citing that a $5,000 increase in your 20s compounds to hundreds of thousands more over your career.
In addition to your main career, ChatGPT recommended building side income. This could be through freelance work, content creation or small business ventures. Anything that will diversify your income streams will help bring in more money and boost your net worth over time.
Adopt a Net Worth Mindset
If your central goal is increasing your net worth, then you need to keep that in the forefront. ChatGPT said that, in order to do this, you should track income, assets and liabilities regularly. It also said to avoid spending a lot of money on stuff that doesn’t hold a lot of value, as that can drag your net worth down.
The main thing to keep in mind, according to ChatGPT? “Be patient and consistent. Wealth grows slowly, then suddenly,” it said.
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