How to Start Building Wealth in Your 20's

The 20's, an amazing time in most peoples lives full of learning and exploring. New friends, jobs and places to live. A common question I get is, "what should I do in my 20's to start the wealth building process." or "What do I need to do now to be rich earlier." These are great questions and I have a few basic ideas that can create a strong foundation for success.

Save

Saving money is the foundation of wealth building. Wealth building is boils down to this: Use money to make more money. So in order for this to be true, saving money should be the first step. Saving is a basic concept but often hard to execute over time. In my experience, creating an automatic transfer from checking to savings account once or twice a month makes this easier. I would recommend building up a cash pile that is equal to 6 months(or more) of living expenses. Basically, enough to live the same lifestyle you live now without working for 6 months. This is a safety net and can allow for future funds to be invested in places that might have a higher risk level.

Earn

To save money, one must earn money. The 20's is a perfect time to work hard and play hard. I recommend working as hard as you can. Work hard at your job and if you have the ability try to also work hard on a small business or other venture outside of work. Do things that you would love to get paid to do. Try as many things as you can, fail, get up and keep taking action.

Connect

Get out and meet people. I am in business with people today that I met in my 20's. The connections and shoulder to shoulder work forges bonds that can last a lifetime. Find people who are smarter than you and help them as much as you can.