5 Essential Money Tips I Wish I Knew in My 20s!

Imagine having the power to revisit your past and offer your younger self invaluable financial advice. What would you say? We reached out to our loyal followers and collated a treasure trove of wisdom, tips, and guidance they would share with their younger selves. From saving and spending to investing and debt management, here is a wealth of financial advice to consider.

SAVING:

1. Early Savings: Kickstart your financial journey by getting a part-time job at 15 and diligently save half of every paycheck.
2. Small Savings Matter: Even saving an additional $1 per week can significantly impact your financial future.
3. Power of Compounding: Never underestimate the power of compounding. Start early and consistently make contributions.
4. Emergency Fund: Always have an emergency fund in place to weather unexpected financial storms.
5. Early Savings/Investing: Start saving and investing early to capitalize on long-term growth potential.
6. Live on Half, Save Half: Consider living on half your income and saving the remaining half or as close to this ratio as possible.
7. Pre-Kids Savings: Prioritize saving as much as you can before starting a family.
8. Automatic Savings: Set up automatic transfers to your savings and investment accounts to build a disciplined savings habit effortlessly.

SPENDING:

1. Cash Over Credit: Avoid using credit cards if you don’t have the cash to back your purchases.
2. Minimalistic Approach: Refrain from accumulating unnecessary items as most possessions are fleeting.
3. Mindful Spending: Think twice, even thrice, before making a purchase to ensure it aligns with your financial goals.
4. Avoid Luxuries: Consider refraining from splurging on luxury items such as clothes, accessories, and vehicles.
5. Budgeting Discipline: Establish a budget and commit to sticking to it to maintain financial control.

INVESTING:

1. Early Investments: Initiate your investment journey early and consistently contribute to your investment accounts.
2. IRA Contributions: Open an IRA at 18 and start with small auto-deposits that you can gradually increase.
3. Financial Advisor: Seek guidance from a reliable financial advisor to enhance your investment strategies.
4. Long-Term Vision: Resist the urge to cash out your investment accounts during financial challenges.
5. College Savings: Start saving early for your children’s college education through a 529 account.
6. Real Estate Investments: Consider investing in properties and rentals for their continued value appreciation.

DEBT:

1. Education Financing: Opt for state schools over private institutions to minimize student loan debt burdens.
2. Limit Financing: Restrict financing to essential assets like houses and avoid credit card debts and unnecessary car payments.
3. Mortgage Repayment: Allocate extra payments towards your mortgage principal for quicker debt repayment.
4. Debt-Free Approach: Store away your credit cards or even cut them up to avoid accumulating debt.
5. Student Loan Caution: Exercise caution when considering student loans as they may not always offer a viable return on investment.
6. Debt-Free Living: Strive to maintain a debt-free lifestyle with a zealous commitment.

OTHER:

1. Simple Living: Embrace simplicity in your lifestyle to minimize unnecessary expenses, even if you have the means.
2. Healthcare Priority: Prioritize your health as medical expenses can be financially draining.
3. Emotional Control: Avoid letting your emotions dictate impulsive financial decisions.
4. Modest Expenditures: Opt for practical, cost-effective vehicles rather than flashy options to reduce expenses.
5. Lifestyle Choices: Steer clear of materialistic comparisons and focus on your financial wellness.
6. Continuous Learning: Invest time in learning about financial instruments like investing, stocks, and mutual funds.
7. Mindful Spending: Strike a balance between saving for the future and enjoying your present financial resources.
8. Financial Stability: Walk the path of financial wisdom, learning from past mistakes, and planning for a secure future.

As you reflect on these valuable nuggets of financial wisdom, remember that each piece of advice offers a blueprint for financial prosperity. Incorporate these insights into your financial strategy and witness the transformative impact on your financial well-being. What financial advice would you share with your younger self? Let’s continue this enriching conversation!