I am a young adult. I have learned a thing or two about my goals and dreams. And guess what? They don’t involve being poor. They involve early retirement. They involve not working at McDonald’s as a senior citizen to make ends meet.
Here are some tips I can give to people my age (or any age).
1. Start thinking about retirement.
Yeah I know it’s a long time from now but it’s going to be the biggest mistake if you don’t save now. Pensions and social security are going away. You’re on your own.
2. Set your finances on auto-pilot.
Have a separate account that automatically takes money from your paycheck. This ensures that you save money for yourself. You won’t miss the money. Plus, you won’t have to test your already-low willpower.
3. Save often.
Consistency is key when saving money. Saving money isn’t some big event. You wouldn’t go on a one-day diet would you? NO! It doesn’t work that way.
4. Create a budget.
As you age, you get a sense of what you spend and you don’t need to budget as much. You are not at this point. Setup a budget. Follow it for a while. You will find that it’s a lot different on paper than it is in your head. It’s just a good habit anyway. I think my Uncle Sharon put it best when he said, “Henry. Budgeting is a good habit anyway.”