Youth who get the opportunity to work should celebrate the chance extended to them. PHOTO | FILE
When I was 20, all I knew about money was: You must save. My mother, a businesswoman, had shared that she only grew her business through savings. However, I did not know much about how to use the savings I had accumulated from working for my mother during my vacation. Lo and behold! I withdrew the money whenever I got the opportunity but squandered it.
Looking back, I wish I had known better financial habits because I made some good money without any responsibility.
The beauty of being 20 is that there is room for correction and growth. Here are some financial considerations you can adapt so that your evening years do not suffer the plight of bad decisions.
Get a skill
Mr Livingston Mukasa, a financial advisor, says any 20-year-old should invest in a skill they can take to the market. It should be a skill that will earn them money. For instance, learn how to programme, and do some carpentry.
“Learn something that can help you make money, even if it is not in line with what you studied,” he says.
Become financially independent: Twenty-year-olds need to start developing the mindset that their financial needs will not be met by their parents. That is although some may still be staying in their parents’ homes.
“Learn that money must be made rather than wait for handouts. That means stepping out to try your hand at different things. In my days, we looked for work on building sites, bought items and later sold them. Currently, it is not about which degree you have but whether you can convince someone to buy your service or product. It is about using your energy to say, slash a compound and earn,” he says.
Appreciate the gift of work
Mr Ronald Mukasa Ssenkubuge, a financial advisor, tells youth that if they get the opportunity to work anywhere, they must celebrate the chance extended to them.
“With no work, you might not have money. Your parents may not be able to give you all you need. Therefore, appreciate work and remember, there is no free money,” he says.
Learn to work with people: Relationships are a currency and Mr Mukasa advises 20-year-olds to learn how to deal with people and respect authority.
“I have only come this far because I learned to be sociable because people have what you need,” he says.
Avoid some responsibility: At 20, some responsibilities should not be in your basket. For instance, paying rent for your girlfriend, or getting a baby should not be on your to-do list.
“It is tougher when you are from a family of no means. Therefore, do not to get into adulthood before it is time. That will save you from financial burdens that you are not ready for. Even when others help you bear some of these burdens, if you can avoid them, do so,” he says.
For those from rich families where missing a meal is unheard of, Mr Mukasa says, “Your parents’ standard of living is not yours. Start your own and the earlier you do it, the better. You do not need a wake-up call such as your parents’ demise to understand that the presence of their money is not guaranteed.”
Save
For every bit of money you get, Mr Ssenkubuge advises any twenty year-old to save first, saying the savings will come in handy on that rainy day.
“In case of any trouble we should be able to look after ourselves. We should plan for that and the insurance industry is created for this. You can also be part of a savings group, or a Sacco where you deposit your savings. You can also interest yourself in investment vehicles such as treasury bonds and bills, unit trusts as these will help your money grow,” he says.
Spend
This is another pillar that Mr Ssenkubuge says money is anchored on because we work to be able to meet our needs. “Once you have saved, you can also enjoy your money. Buy yourself a good meal, some clothes,” he says.
Balance your time
He adds that there is time for everything. Doing the right thing at the right time is freedom because you then know how to spread your tasks out and do them well.
“There is a time to work, sleep and celebrate. Make sure your time is well-allocated so that nothing suffers,” he says.
Try business
Apart from getting gigs, Mr Ssenkubuge advises youth to do business.
“Try it now when there is more room to learn than when it is a matter of necessity. Whether you fail or succeed, there will be lessons learned and they will guide you along the way,” Mr Ssenkubuge notes.
