I’m a firm believer that as long as you know how to manage your money and what finance is all about, you can literally get the job that you want. 💁
Why do you people get jobs they dislike? For the money, the salary, the stability. So if you get the money sorted out before getting a job (so yes, as young as possible), you won’t have to get a job that you dislike. It may sound oversimplified, but it really isn’t that complicated.
This is what Financially Mint is all about; teaching you how to manage your money early on so you don’t have to stress about it in the future. This is why I have a podcast about financial independence and this is why I never shut up about it; there’s a door to escape the horrid ‘rat race’ right there in front of everyone, but no one sees it and very few escape. Financial education will show you that door 🚪
Here is the stuff you need to know in order to have the freedom to choose the career that you want (hint: it’s also on the home page)
1. Budgeting
No matter the job you get, if you know how to manage your income and your expenses, you’ll know what you need to in order to live.
So, even if you’re earning a measle £500/500€ a month, if you know how to manage that income and control your expenses, you will know what to do to reach your goals (earn more, invest more, etc). By downloading a budgeting app such as Yolt, Fintonic or even using an online bank such as Revolut, you can easily set how much to spend on food, travel, transport, etc. With that under control, you refrain falling into lifestyle inflation and can therefore reach your goals
You don’t have to budget every single nickel and dime, but having a number for every category you spend on will help you assess your financial education and therefore improve it (what gets measured gets managed!). ✅
For a guide to get started with budgeting check out the Budgeting in 10 minutes section. Budgeting is the first pillar to getting a financial education.
2. Saving
Personally, this has changed my life. When I realised I can save before spending instead of saving after spending, it was a huge life changer. Even if I’m currently making 700€/month (true story), I save a 15% the minute I receive my income. This 15% is my emergency fund or cushion, which gives the freedom and options to:
- Change jobs if I want to
- Live for a few months without making money
- Easily afford emergencies
- Capital to travel, larger expenses, etc.
Working towards that emergency fund is a life changer; people recommend getting 6 months of expenses, but even 3 months is fine.
I currently have 5 months of expenses (about £5,000), and now allocate my 15% to investing. When I have an emergency or need capital to travel, I use that emergency fund and then focus my earnings on filling it up again.
Saving gives you an amazing freedom in life. The second pillar of financial education. 🏛
3. Making money 💸
Making money is a skill. And it’s a skill that you can practice and get better at. Knowing that you will always be able to make money is something that helps you sleep at night, that gives you the confidence to find a job you enjoy and that adds an interesting touch to your CV.
This skill is especially important if you’re an intern, a student or simply have a job that doesn’t make much. If you have the skill to easily make money whenever you need to, you can afford to take a career path that might not make much. You can afford to be an artist, a yoga teacher, a hiker, etc. You have the freedom to do what you really want.
So what skills am I talking about exactly? I mean finding and working on a skill that you know will always be able to make you money. Nowadays, even better if it’s something that can make money for you online. For example, I have worked on my writing and marketing skills, which mean I know I will always be able to make money writing articles, show notes and reviews for clients online. 💻
There will be even more technology and the internet-related products in the future, which is why I would recommend practicing a skill that has to do with technology or that can be earned online; e.g. writing, programming, designing, translating, voice overs, etc.
For guides on how to figure out that skill, check out the following posts:
- How to Earn Money Freelancing online
- A Simple 3 Step Process to Start a Side Hustle
- 5 Ways You can Make Money Online as Student (No, Not Surveys)
Making money is the third pillar of having a good financial education, as it will always help in times of greater need.
4. Adulting
The last and fourth pillar of financial education only comes once you’ve followed the previous three. Once you’ve got a budget under control, once you’re saving your 15%, once you know how to make money, you are ready for the last step, the ‘adulting’ step.
This means:
- Investing
- Paying off ‘bad’ debt
- Getting that job/working on what you really want
Investing is what will allow your money to grow, it’s what will allow you to be independent from your money, and as cliche as it sounds, investing means making your money work for you.
Not convinced? Check out the Why should I care page? and a FM post on 6 Investing Myths Debunked.
Debt can be both good and bad. Student debt is good if your degree is worth it. Mortgages are good because they allow you to buy a house. Credit card debt, car loans and debt with high interest rate is bad debt. You want to get rid of that ASAP. If you find yourself in this place, I recommend reading 10 Steps to Getting Debt Free to get started on your path of no consumer debt.
Getting the job that you want is the tricky part. Most of us don’t know what we want, we don’t know what’s the ideal job. I don’t either. Life is about finding the work that truly fulfills you, and people spend 50+ years just looking for that. My recommendation; don’t settle. Keep searching, keep trying new things, keep looking for that thing that gets you excited in the morning.
And in order for you to not starve to death on that search ‘for what fulfills you’, be financially educated. Make money with those skills that you’re developing, keep saving that 15% so you’re flexible, and make sure you keep budgeting. I strongly believe that as a young adult the priority should be finding that work that fulfills you and educating yourself financially, the big bucks will come later. 😎
If you master those four pillars of financial education, you can do what you want with your life. Because no matter what you do in society you will always be in contact with money - whether you’re a cook, an artist or a dog walker. So might as well learn how to manage it well!
If you’re overwhelmed with all the stuff you need to learn, I seriously recommend taking a gap year and educating yourself as much as you can on building those money making skills, on learning how to get into the habit of saving, on how to start investing. I can guarantee you that it will be the most productive year of your life! 👌
