I’m sure we’ve heard this phrase maybe once or twice in our lifetime: your 20s are the most pivotal period of your life – it can really make or break you… and if you’re a woman, you should be at least married or have kids by then.
Forget the fantasy, we’re living in a reality where in today’s age, more women are becoming more independent and actively making choices for their own lives. According to a study by Roy Morgan Research, more women than men are household’s main income earners and this is undoubtedly a positive trend that is slowly but steadily rising. This in turn challenges the traditional norms and changes the conversation, particularly on finances.
Whether you’re in your 20s, like I am in the tail end reaching my 30s, or wherever you are in your life journey, I’d like to share some financial lessons that I have taken under my wings and hope that some of these can resonate with you and/or for your loved ones.
These lessons have been curated over the years when I hit my 20s, and these still hold true to this day as I’m writing this article. Here are eight lessons in my (early) 20s to become a financially independent woman (go you!).
#1 Unlearn and challenge the “norms”
The Information Age has certainly disrupted many traditional ideas and accelerated change for everyone across the globe. Data can be accessed at our fingertips at any time, coupled with heightened awareness of new and innovative ways to create income cash flows. Once upon a time, we’ve been taught to save money, buy a house and reduce our debts through an “average” 9-to-5 day to day job… However, now with the access to endless opportunities online, including but not limited to apps to invest in stocks, cryptocurrency and virtual land to content creators and influencers on social media, this subsequently changes and challenges the working “norms” of society.
With the transformation that our society is enduring through, accelerated by the COVID pandemic also, it is the best time to review your financial position in today’s context. A quote that resonates with me: “If your mind is open to opposing ideas, your intelligence will go up. If your mind is closed to opposing ideas, your ignorance is in control.” Understanding that we are living in a different world is the first step to making great changes to your own life.
~Novel Serialisation: Heavens Fire~
#2 Invest in yourself
I’ve always been a diligent student from a young age, and it may have ingrained into me from my parents but I am grateful that learning is a part of my everyday lifestyle. Hitting my early 20s brought a lot of fear and curiosity into the world of personal finance. Having lived and depended on social welfare nearly all my childhood, it was a big step into the unknown as no one within my inner family circle has ever ventured into the road of financial freedom. So, naturally, I began to research, read and learn (and made many mistakes) about investing into property at that age. At the same time, I was opening opportunities for myself by investing in financial education. This included attending property inspections, speaking to those working in the financial industry, and reading loads of books and articles on financial education (and self-motivation too) from authors including Scott Pape, Angela Duckworth and now, Robert Kiyosaki.
Learning what is an “income statement” to “balance sheet”, and subscribing to financial experts and mentors who use simple language to explain the As, Bs and Cs. In addition, understanding what drives YOU to achieve those goals that may be shaped by how you have grown up to what is YOUR life’s purpose. You may not know the answer at this time (and it’s okay!), but once you invest in yourself, clarity begins to manifest organically.
Plugging another quote that relates to this idea: “Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime.”
#3 Start upskilling in your spare time
Upskilling sounds like a scary word and you might be thinking, “I don’t have time” or “I don’t have money right now to commit”, these are certainly legitimate reasons and again, drawing back to what drives YOU in this journey, changing up your routine can be the hardest start however once the door is open, great things can start appearing into your life.
In today’s digital world, upskilling doesn’t need to break the bank. It can be as simple as reading a book before you go to bed, listening to a podcast while you work out or clean your home, or attending free financial webinars online. For me, reading is my go-to and speaking to my peers who are familiar with the concepts that I’d like to learn more about. Every day I’m learning something new and I really enjoy opening my mind on this as it drives me to hit more of my own financial goals.
#4 Use words and language to bridge the gap
I’ve dabbled on this briefly in the previous sections and it relates primarily to this quote: “Words become flesh”. I’m not a religious person but this quote really hits the nail on the head. In this context, how we frame our sentences and words is incredibly important. For example, when you say “I don’t have time” vs. “I’ll make time” or “I will never be rich” vs “How can I be rich” using words can be very powerful in framing your way of thinking, and therefore drive you to pursue your financial goals.
Instead of focusing on the “what”, focus on the “how”.
I always look in awe of women who are successful in today’s world – from mumpreneurs to CEOs – I think to myself: “How can I achieve something like that?” instead of “I can never be like that”.
Using simple day to day language is a powerful tool that we all have access to (verbal and non-verbal).
#5 Say “no” and “I don’t know” more often
Echoing from the sections above, with more opportunities present in today’s society, once you start investing in your education and using simple language to focus on the “hows”, you will naturally become more familiar with the words “no” and “I don’t know”. Is it me, or do these words have more weight since they are so empowering, especially for women?
In the personal finance context, I was once in a difficult situation purchasing a new property, I had to make a very hard decision of saying “no” and not going ahead even though I was mentally invested in this. In hindsight, it was the best financial decision I’ve ever made, thanks to the research prior to settling the property. It has saved me thousands of dollars, and not to mention, thousands of headaches if I were to go ahead.
#6 Frame your mindset
I’m sure we’ve all heard it from our family, relatives and/or even peers: “You have to work hard for money to have a successful career/ future.” To some extent, that is true however, honing those lessons above, what is the point to life if we’re fixated on just money?
Let me put it simply, why work for money when money can work for you?
Reframing your mindset to this statement can be quite enlightening. And your next question might be “How?”
This is great as you’re on the route to financial freedom! Financial freedom, put simply the way I see it, is being able to control money and not the other way around. For me, I don’t want to be boxed in by what I can and can do because of my money, rather exploring and researching other ways to make passive income while I sleep blissfully at night.
For some women out there, I’ve seen amazing online startups/ business owners, authors, content creators and more working on their “side hustle” to create multiple cash flows to live their best lives (rather than just living lives for the sake of making money). For me, my interest lies in real estate and that creates a healthy flow of consistent passive income, allowing me to enjoy other finer things in life such as finding time to unwind through meditation, spending time with family/ friends and travelling the world.
#7 Seek a mentor
Surround yourself with like-minded peers or even seek a mentor. They might be a family member, friend or colleague who’s been in the field for sometime, and this is the best opportunity for you to get first-hand experience and advice, widening your financial literacy and education.
If the above is not a feasible option, I highly recommend looking into your community programs and resources (and they’re generally free at cost), it’s another option to meet new people and open your doors to networking with fellow peers.
#8 Expand your means
Last but not least, a question I pose to you: Why live below the means when you can expand them? By putting those lessons above into practice, I was able to secure three properties by the age of 27, it was not an easy process however, it’s safe to say the amount of financial experience to date I gained is priceless.
Coming full circle, there is an abundance of opportunities out there in our digital world waiting to be actioned by the rightful owners.
Having been equipped with the right mindset, ongoing financial education and surrounded by supportive people, the sky’s the limit.
Here’s a message for you:
The real lesson begins from today onwards. What lessons resonated with you the most and where will your financial education take you?
By Linda Tran
Bio:
Linda Tran (she/her) is a well-rounded marketing professional, based in Sydney Australia, with over 6 years of experience under her belt.
To date, she has joined a number of innovative, creative organisations from various industries, including travel, tech, finance, insurance and education, which have allowed her to build meaningful relationships, broaden her skill sets and also expose herself to many interesting and evolving projects to date. Linda holds a Bachelor’s Degree in Communications (Major in Public Relations) at University of Technology, Sydney; and a Master’s Degree in Commerce (Major in Marketing) at UNSW Business School.
At the age of 23, Linda purchased her first property and until today, continues to actively grow her investment portfolio. She is paving her way as a lifelong learner who is passionate about all things personal development, property investments and finances, where she has also been featured in News.com.au and Yahoo!Finance.
Connect with her on Linkedin here.
