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Entrepreneur's Corner

Adulting 101 And What You Need To Know For You To Conquer Your 20’s And Become Financially Independent

BY Steve Biko Wafula · October 29, 2024 12:10 pm

KEY POINTS

Financial capital is essential for long-term stability and achieving your life goals. Start by building an emergency fund that can cover at least six months of living expenses. This will provide a safety net in case of unexpected job loss or unforeseen circumstances.

KEY TAKEAWAYS

Your twenties are a defining decade, a time to lay the foundation for a fulfilling and prosperous future. By prioritizing essential needs, investing in personal growth, supporting your family, cultivating strong relationships, and building financial capital, you can navigate this exciting phase with confidence and purpose. 

Your twenties are a time of immense personal and professional growth, a period where you lay the groundwork for the life you envision. It’s a decade of exploration, learning, and building a solid foundation for your future. While navigating this exciting phase, it’s crucial to prioritize key areas that will set you up for success and fulfillment in the years to come.

Starting with the Essentials

As you embark on your journey, particularly if you’ve recently landed your first job, focus on establishing a comfortable and functional living space. Allocate approximately 30% of your monthly income towards securing a safe and convenient place to call your own. Invest in essential furniture, ensuring a restful sleep with a quality bed and creating a conducive workspace with an ergonomic chair and desk. Equip your kitchen with basic utensils and appliances, enabling you to prepare healthy meals and save on dining out expenses.

Prioritize quality over quantity when it comes to electronics and appliances. A reliable laptop, a smartphone, and a good washing machine are worthwhile investments that will serve you well in the long run. Allocate around 15% of your income for these purchases, ensuring they are durable and meet your needs.

Your appearance matters, both personally and professionally. Invest in a well-curated wardrobe with versatile pieces that can be mixed and matched for various occasions. Aim to spend about 10% of your income on good quality clothes and shoes, ensuring you present yourself confidently in any setting.

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Investing in Yourself

Once you’ve established a comfortable living standard, shift your focus towards personal and professional development. Dedicate 10% of your monthly income to acquiring new knowledge and skills. Enroll in online courses, attend workshops, or pursue further education to enhance your expertise and increase your earning potential.

Supporting Your Family

As you progress in your career, remember to extend a helping hand to your loved ones. Ensure your parents have access to quality healthcare by enrolling them in the government health program like SHIF. Medical expenses can be a significant burden in old age, and providing this safety net will give you peace of mind.

Support your siblings’ education by contributing towards their school fees or college expenses. Investing in their future is an investment in your family’s overall well-being and will strengthen your bond. Allocate around 10% of your income for these family-oriented goals.

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Cultivating Meaningful Relationships

Social capital is an invaluable asset that can enrich your life and provide support during challenging times. Nurture meaningful friendships and build lasting connections with people who share your values and aspirations. Dedicate time and effort to cultivate these relationships, as they will be your pillars of strength throughout your journey.

Building a Secure Financial Future

Financial capital is essential for long-term stability and achieving your life goals. Start by building an emergency fund that can cover at least six months of living expenses. This will provide a safety net in case of unexpected job loss or unforeseen circumstances.

Explore opportunities for passive income generation, such as investing in real estate, stocks, or starting a small side business. These ventures can supplement your primary income and contribute to your financial security. Aim to allocate 25% of your income towards savings and investments, steadily building your wealth over time.

Your twenties are a defining decade, a time to lay the foundation for a fulfilling and prosperous future. By prioritizing essential needs, investing in personal growth, supporting your family, cultivating strong relationships, and building financial capital, you can navigate this exciting phase with confidence and purpose. Remember, the choices you make today will shape the person you become tomorrow.

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Steve Biko is the CEO OF Soko Directory and the founder of Hidalgo Group of Companies. Steve is currently developing his career in law, finance, entrepreneurship and digital consultancy; and has been implementing consultancy assignments for client organizations comprising of trainings besides capacity building in entrepreneurial matters. He can be reached on: +254 20 510 1124 or Email: info@sokodirectory.com

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