Let's face it… members of Generation Y are pretty competitive. Maybe it's our generation, maybe it's because we were told that we could achieve whatever we wanted when we were younger. Maybe it's because we never want to settle. Or maybe it's the mentality of instant gratification, we want it, we got it.
Whether it be who gets married first, who achieves life's milestones first (yes, all those baby pictures you keep posting on Facebook are kinda annoying), or who owns a home first, we want it all.
Well, as I approach the big 3-0 (I still feel 24 except that I have all this pressure to hit all these life milestones, which kinda sucks- is this what being “mature” is- feeling pressure? lol), the only thing I am proud of is that I have a decent net worth. Haha, that's probably because I am childless and boyfriendless so I need to gloat about something lol.
According to Investopedia, has a good post on the average net worth you should have according to your age and the income that you make.
Anyways for all you young'uns reading this blog, here is how you can get a decent net worth by age 30.
Start Working in High School
The benefits of starting work in high school are boundless. Sure you might get a few crappy jobs, but everyone has to start somewhere, right? Getting a job in high school teachers you the responsibility of earning money, you won't look at purchases the same way again because you'll realize that you needed to work 100 hours to buy that iPad that you really don't need. Also, because you're busy working, you're going to keep out of trouble (well, for the most part, anyways). Finally, starting work in high school teachers you how to work with others, to learn that you can't defy authority all the time (your parents do not equal your bosses), and also gives you work experience for something to add to your resume.
Related: Generation Y in the Workplace
Choose a Program that Can Lead you to a Satisfying Career
I know I know, not everyone knows what they want to do when they are 18 and graduating out of high school. Most people want to become doctors or lawyers (okay maybe not). If you really know what you want to do, there are some great programs in college and university that are in high demand and pay decent as a new graduate. The last thing you want to do (if you are worried about this) is to be over-educated and underemployed. However, if you start working in high school and have work experience, this might mitigate the problem of not being able to find a decent job despite having an MBA or a bachelor's degree.
Some examples that pay well when you are fresh out of school are engineering, information technology, healthcare, and teaching. Talent egg has a list of entry level salaries for a plethora of jobs once you graduate.
Start Paying Yourself First
Okay, it's obvious that you can't start to have a high net worth when you don't save any of the money that you are making. Track your expenses, know where your money is going. Get motivated to start investing your money when you are young. The power of compounding and dedication to investing will pay off big time later on.
Start by paying yourself 10% every month and set this aside. Once you have a sizeable amount, you'll be motivated to invest this in something other than a high interest savings account. When you salary increases on an annual basis, continue to keep your expenses down and increase the rate that you pay yourself.
Make sure that your expenses are low enough that you are not living pay cheque to pay cheque.
Do your research, invest when you are young. I started with the TD e-series account and have been very pleased with it (okay I started with money hungry high MER mutual funds from Investors Group but you have to start somewhere right). Watch your money grow. Continue to pay yourself first on a monthly basis and contribute on a monthly basis.
Get motivated about passive income investing.
Realize that it's not truly about how much money you make in your day job, but it's how you use the money that you are given through your day job. This is true. If you make $100,000 and you end up blowing the money on eating out all the time, partying, and drinking… you are not going to have a high net worth, even if you are in one of the top tax brackets.
Readers, any other tips on how to have a decent net worth by 30?