5 Money Tips I’d Give to My Younger Self
I got asked by my younger brother what financial advice I’d give my younger self. What a great question! There’s so much financial advice out there, some good, some bad, some ugly. Today I’ll add my two cents. In no particular order:
Invest in your financial education
As someone who has gone on to become a financial educator and personal finance coach, literacy has always been important to me. It seemed like Wall Street knew a secret language that only they could communicate with and therefore we had to entrust them with our hard earned money in order for it to grow. Turns out that was just a bunch of BS jargon used to mislead and confuse us. I’m not saying every financial concept is super easy, I’ve definitely had to take deep dives, phone friends and watch YouTube videos to really understand certain things. But taking the time and choosing to prioritize my financial education led me to know how to pay off my student loans early and buy my first condo at 27. I’m by no means a self made woman, but I had to lead the charge to take control of my finances and future.
Not all debt is evil
This is something I’m honestly still learning. When I first graduated college I was allergic to debt. In many ways I still am. I absolutely see consumer debt as something that can ruin lives and steal futures. But now that I have a mortgage, I understand the difference between good debt and bad debt. Now, I even call debt by the name rich people use for it: leverage.
Take good care of your assets
For me, this is mostly focused on my car. I love my Forester to death. I know I’ll have to replace it in the future, but owning a paid off car frees up my money for other things. Amazing things, fun things, the things we dream about when we’re in debt. It feels so good to be out of debt when it comes to my car, I’d love to stay this way forever.
Set financial goals
Unless you have goals, you’re never going to go anywhere. It’s totally cool if your goals change over time, but you should always be saving for something. Otherwise, you’ll easily find yourself in a situation where you spend away all your cash and make little to no progress. Goals can be big, goals can be small. What matters is that you have them.
Live beneath your means
Living beneath my means has enabled some incredible things for me. Not just vacations and travel, but I was able to cut a $10,000 check to rid myself of my student loans after surviving a few months of unemployment in relative comfort. Neither would have been possible if I had lived in excess of my income.
Bonus:
Start planning for retirement as soon as possible
This one’s a bonus because younger me started saving for retirement with her first paycheck. If you haven’t started saving for retirement yet, consider starting today.
Remember that financial literacy and responsible money management are ongoing processes. Continuously educate yourself, adapt to changing circumstances, and seek advice when needed. Your financial future will thank you for taking these steps today. Don’t put too much pressure on yourself, but also be firm in setting your goals.
