Some people say that its best to enjoy your youth, spend your money, and worry about money later in life. Those people are POOR! In all seriousness there is some truth to that mentality. For instance, traveling is one of those experiences to be had that doesn’t have the same impact when you are older. By all means, I’m not saying be a scrooge and saving every penny will make you happy in the long term. That being said, I think it’s much more common to regret not saving money. The financial foundation you set in your 20s can have a lasting impact on the quality of life as you get older. I believe in a solid mix of conservative and risky investments is the way to get rich while you are still relatively young.
- $1000 Safety Net: One crucial first financial goal is to have a safety net. There was a study that said 30 % of Americans couldn’t come up with $500 in case of emergency. Save up $1000, pull it out in cash, and keep it in a safe space. You may think I’m paranoid, but I don’t trust the banking system completely. I would rather have my emergency dough in cash in my safe than in the bank. The rest of your money is fine in a high yielding savings account.
- Pay off Consumer Debt. Credit card debt can be a huge hindrance on financial freedom. It is not free money that you can take time to pay off. Compounding interest is a bitch.
- Establish credit: You may not think you need credit now, but in the future you could end up paying a lot more for your house if you have poor credit. Or you may be denied altogether. Even if you don’t want to open the possibility of credit card debt, you can open a card and make one purchase. Pay off the purchase completely and then don’t touch it.
- Understand taxes. You’re going to be paying them your entire life. If you understand the system, you can save boat loads of money through the years.
- Pay off student loans: If you are diligent with budgeting, THIS IS POSSIBLE. It may seem insurmountable but you can do it. Stop going out to eat, and if you are going to get drinks with friends you can bring a flask to avoid a super expensive bar tab. Little budgeting tricks like this can add up over time.
- Multiple streams of income: Check the previous blog post about this one. Making money while you sleep is the key to financial freedom.
- Write down your retirement goals: This may seem unnecessary but it can make a huge difference. Many people just accept they will retire at 65 like other people. Be ambitious. Many people budget to retire much earlier and they make the moves to MAKE IT HAPPEN.
- Avoid Fads and Scams: There is no real short cuts in life. Sure, there are better routes that will make things easier for you, but be weary of these “get rich quick” schemes that seem to be running rampant on YouTube. No, your high school friends multi-level-marketing scheme is not making them rich and it will not make you rich either. Work hard, read books, and always try to improve. That’s the key to success.
- Own 1 full Bitcoin: Ok, this one is a personal belief of mine. We may not have bottomed out completely from this bear market but I believe the potential upside is enormous. Take it for what you will, but I’m a huge believer.