Being young grants you the gift of youth. Youth allows you to work as hard as possible and recover easily by the next morning—you are almost invincible.
However, with youth comes hormones and pride. Indeed, fighting through your own mindset will be the biggest challenge of all.
If you can get it together, you can set yourself up to reap the benefits of wealth for your entire life and future generations. Would you like to become financially independent in your 20s?
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Why even ask this question? Of course, everyone WANTS to become financially independent as early as possible. However, very few people will do what it takes to accomplish this impressive feat.
I am 41 years old and see people for what they are; most people dream of having amazing luxuries like a beautiful spouse, obedient kids, big homes, and fancy vacations.
But all these things require one thing most people cannot give—sacrifice. To have things tomorrow, you must give up things today.
Therein lies the rub. Do you want to spend your 20s having fun or setting things in motion to enjoy your 30s, 40s, 50s, 60s, 70s, 80s, and 90s?
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It’s a tough question that you seriously need to ask yourself. I have built enough wealth to set my family free for the next few generations—it doesn’t take much. However, I continue to build our empire, one book at a time.
What is financial independence? Financial independence is having enough cash flow from your assets to live passively indefinitely. This means you do not have to work because you have enough passive income to support your lifestyle.
The magic of being in your 20s. The good part of being in your 20s is that you don’t need much to set yourself free.
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Indeed, you don’t need to have $5 million in the bank in your 20s. To become financially independent in your 20s, you will need $1,000/month in dividends.
You see, time and education are the essential elements inside the power of compounding. If you can build $1,000/month in dividends, you must understand the process of investing.
Then all you need is time to reinvest your dividends to grow your wealth. Yes, you will need to work, but your dividends will continue to grow in the background forever.
If you can build this income stream, you can then go on to start your family, climb the corporate ladder, and set yourself free without much fuss.
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Getting started with dividends. You can set a goal to invest $200,000 in an income investing portfolio to achieve over $1,000/month in revenue.
The hard part will be sacrificing your nights and weekends to achieve this lofty goal. But here is what you have working for you.
You’re not missing much by staying in your home. I lived through my 20s and got married at age 25. My wife and I had good times going to clubs and staying out late.
However, I could reduce these nights to 25% of what we did and still have fond memories. Seriously, going out once a month would have the same effect as going out twice a week.
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You will only remember the super bad and really amazing nights. The less you go out, the more chance you have of having good nights; trust me.
Time to work to the bone. You won’t have much work experience in your 20s. You may land a high-paying job, but chances are you’ll be working hard for the money.
The real money comes when you have years of experience and can manage other humans. However, what you lack in experience, you can make up for with youth.
Yes, you will have to take on multiple jobs at this age. Your goal is to save and invest $200,000 in 3-4 years. This is possible because I did it with a full-on family.
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You should work at least 60 hours a week, if not 80. Remember, this workload is only for a season, not your entire life. The harder you work now, the more wonderful moments you’ll have for your remaining time on Earth.
Building an empire. You can work multiple jobs, or you can build an empire. To create a lifetime of income, you must face your limiting beliefs and start an online business.
An online business is the fastest way to increase your wealth multiple—the more people you serve, the richer you become. With an online business, you have the potential to serve billions of people.
The goal of your business is to produce passive income from royalties (content creation) or automated business (management, automation, outsourcing).
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Once you have multiple income streams from your online business, you can invest cash into dividends and real estate.
You will have multiple income streams: rental income, royalties, automated business, dividends, bond interests, and cryptocurrencies.
Your life will be busy. This path seems like a lot, but don’t overwhelm yourself. The simple goal is to make money and invest for income.
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If you create $1,000/month in dividends in your 20s, you’ll be rich in your 40s. Everything else is a luxury. Too many people get carried away with growing a business or investing heavily in real estate.
If you over-leverage yourself, it can lead to your demise. Market bubbles burst, recessions happen, and the stock market can flip on you at a moment’s notice.
Keep it simple, and you will succeed in the long run. Once you earn your $1,000/month in passive income, you will need to find a fantastic spouse with a similar mindset.
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One day you will be richer than you can imagine, but you must let compounding do its job via time. If you can build in your 20s, you can enjoy it in your 40s.
Conclusion. The goal of being financially independent is never to worry about money. This statement doesn’t mean you can buy whatever you want.
It simply means you can live an upper-middle-class lifestyle without worrying about working or running out of money.
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Can you imagine having a nice four-bedroom, three-bathroom home with two Honda Civics in the driveway? You can go to upper-middle-class restaurants like “The Yard House” and “The Cheesecake Factory” once a week.
You can do all this without working a job. You can then homeschool your children and travel the US in an RV as you see fit.
Your $1,000/month in dividends will turn into $11,000/month over 20 years. You can live an extraordinary life if you put in the hard work in your 20s.
Can you overcome your hormones, the need to party, resist doing drugs, and the media’s fascination with quitting your job? If you can, you can have it all. Good Luck!
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Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. All Right Reserved Military Family Investing
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