Ring, ring?
Yeah- 20 year old, Kait. Quit wasting your money. Quit working so hard for your money. It’s time you let your money work for you.
Breaking the Mold in Business and Finance
In your 20s, financial freedom sounds like an absolute dream. Wake up, do whatever you want, buy whatever you want, whenever you want it. And most of the time it seems entirely unattainable. But that’s far from the truth. Having financial freedom is, in fact, attainable with a bit of discipline and knowledge.
Listen, money talks and all, but in my 20s, I had to teach mine to speak up!
My Financial Independence Strategies
When it comes to making money, I’m all about two things: passivity and multiple streams of income. And no, I’m not talking MLM.
Why these strategies?
Because both don’t necessarily have to require your time. And Mama’s, let’s be honest. We’re already strapped for time as it is.
Having multiple streams of income makes it sound like you need multiple jobs and that is far from the truth. You can have revenue streams and passive income flowing in while you sleep.
For example, some ways I currently make passive income, both in business and personally:
Rental properties
Selling guides and PDFs
Attaching photo purchasing storefronts to each of my client’s galleries
Each of these has created another stream of income for our household, aside from my overall job. Each of these also requires NO additional time of mine. My general rule of thumb has always been to have our household maintain seven streams of income minimum.
Addressing Common Misconceptions
In my 20s, I thought the only route to success and income was college and a career. Never once did I consider self-employment. I didn’t even think about entrepreneurship until my late 20s. Although the idea of it always seemed appealing, I had absolutely no idea how people did it. Where did they get the money to start? How did they come up with such a profitable idea?
Entrepreneurship certainly has its pros and cons, financially. And many people are intimidated by the risks of entrepreneurship. Money can come in ebbs and flows. You cannot always predict how much will come in. BUT, here is the best part, there’s absolutely no ceiling either.
I don’t have to ask anyone for a raise.
I don’t have to wait for someone to retire to climb higher up the ladder.
I can pay my taxes ahead of time to avoid a large hit. (This one is so commonly misunderstood- and many people are intimidated by small business taxes. It’s not as scary as it sounds, I promise.)
I can control how much I pay myself and when.
Having the financial flexibility is certainly an adjustment. You have to be very disciplined about how you are dividing up your income.
Not being on an employer payroll, I have to consider insurance, taxes, and retirement (savings).
I currently operate under a 60/40 divide. At the end of each month, I divide my monthly income by 60/40. 60% of the monthly income gets paid out to me. Out of that 60%, I put 20% into our savings- which further gets split into retirement and investments for the year. The remaining 40% goes towards living and bills. The 40% that remains in the business pays my quarterly taxes and covers all of my business expenses.
This is simply my breakdown, and it took us some time to figure out what worked best for us.
Empowering Others in Entrepreneurship
Your 20s are the perfect time to experiment, fail, learn, and grow. And I’m not about to give you the “minimal responsibilities talk” because that’s bullshit.
In my 20s, I got married and had 3 babies. I completed college- a bachelor’s and master’s degree. Bought a house, so I had a mortgage to take care of. I know many 20-year-olds that have responsibilities up the wazoo.
But your 20s is the perfect time because you’re still figuring out so much in life. Your confidence. Your interests. Your motivators. Your good, bad, and ugly. Your 20s is your time to try it all. Take the risks. Make the questionable choices. Trust yourself. It’s all about listening to your inner voice and turning your passions into profits.
My Business, My Rules
Begin getting comfortable with talking about money- it doesn’t have to be taboo. For me, I love talking about money with others. I love talking about investments, risks people are taking, credit, income, savings…you name it, I’m in the conversation. It’s the best way to learn what others are doing and gain insight in new areas.
My 20s were a rollercoaster of financial ups and downs. From getting my first “big girl” paycheck and blowing through every penny, to paying down thousands of debt and finding the importance of setting ourselves up for our future. The beauty in entrepreneurship- whether you are starting your own business or hustling side gigs, your financial journey is yours to craft.
Feeling stuck and not knowing where to begin? I got you! Let’s chat money! Follow me on Instagram or join my email list for more inspirational and helpful content!
