Develop financial awareness
Many of us are tired of being caught up in the same financial patterns but don’t know how to stop them.
By starting to figure out the “money stories” you inherited from parents, peers or the media, it can lead you to asking whether they are serving you well or whether you need to leave them behind.
And, just as importantly, what new “money stories” do you want to start creating yourself?
Figure out how you want to live
Too many of us live a life by default, which means we arrive at pivotal ages or years and wake up thinking, “how on earth did I end up here?” Instead, by figuring out what you want to achieve in the 2020s, you can start to paint a picture about what your life would look like in say one, three or 10 years’ time – and what you need to do financially to make that happen.
Invest time in financial literacy
The 2018 Household, Income and Labour Dynamics in Australia report showed fewer than 50 per cent of people could answer five basic financial literacy questions correctly.
In an era where we are able to get ourselves into financial trouble faster than ever before, thanks to easy access to credit, 24/7 online shopping or gambling, it’s time we started to level the playing field when it comes to our financial knowledge.
Create multiple income streams
Too many of us are wage slaves who do not have financial freedom because our entire income is derived from working.
Research shows that multi-millionaires often develop up to seven different income streams. They might include business income, dividends, interest, royalties, capital gains, earned income or rent.
Create a plan, so that by the end of the 20s, you are well on the way to at least three new income streams that are not so reliant on your personal toil.
Aim for quick wins
Maybe this involves cutting up your credit card, contacting your bank and asking for a discount on your home-loan rate, cancelling subscriptions that you no longer use or investing in the share market by buying an Exchange Traded Fund and setting up a monthly payment to buy more.
The most important thing you can do to financially prepare for a new decade is to start.
Melissa Browne is an accountant, adviser, author and shoe addict.