Five Financial Advice We Would Have Given To Our Younger Selves!
We are all one decision away from a different life. So it is no wonder that we often look back at our past and think how our life would be if we had taken a few chances. Would our life be a whole lot different? Would we be in a better place emotionally, professionally, and personally?
Well, we can never know for sure. But we know for sure that our financial health would be a whole lot different if we could go back and talk to our younger selves about them! As you look back on your financial journey, you are probably grateful for the financial decisions that you have taken. But maybe there are somethings that you may have done differently. Here are some key pieces of advice that you need to give to yourself: your younger self.
Start Retirement Planning Early
When we got our first job, we didn’t know, what an employer-sponsored retirement plan was all about, especially a 401K, retirement plan. We knew that our employer was offering us free money up to a certain percentage for our contributions.
And we started contributing as soon as we heard that it was free. We started contributing and gradually increase our contributions with time. But we waited for sometime before we maxed out our retirement savings. Contributing to retirement funds right away would be so much better, as we would have contributed to the accounts in a significant way.
Life Insurance Is A Crucial Investment
Most people start thinking of contributing to life insurance at a much later date, especially when talks about life insurance seems a tad morbid. But being older made us realize the importance of life insurance. Trust us.
If we had to start contributing to life insurance in our twenties, the premiums would have been so much cheaper. Now in our thirties, we have to pay a lot more to keep our policies. Still, it is worth it, that there are lessons you need to learn!
Learn The Nuances of Finance
Once we started saving for the first $100,000, over $50,000 was money, and sadly, it helped us earn a minimal, amount of interest.
Most of us know nothing about investing when we start. So, we must start knowing more about investments at an earlier stage of our lives. We learn so much as we grow in life. And we start our journey of investments. However, we could have hefty savings if we start much early in life. Yes, we are talking about investments beyond the 401k. We could have steered it more towards our non-retirement goals.
Buy Less and Save More
When you have a considerable amount of money in your bank account, you start feeling a lot more comfortable and splurging on many more things you like. You start telling yourself that you deserve to splurge on yourself if you earn a lot of money. But after some time you realize, that instead of splurging on clothes or any other things that hardly add value to your savings account.
You should instead put your hard-earned money that you would see it. Invest and work hard for you and your future self. If we could go back in time, we could certainly tell ourselves that we could save and stop spending on things that would hardly add any value to our future accounts. Start saving aggressively right now, if you have just stopped working, and you will undoubtedly pat your back soon.
Spend On Memories
Memories and experiences seem priceless, and we would certainly tell our younger selves to spend on unique experiences, rather than spending on tangible things. Spending on making memories will delight your senses more and also add to your personality.
Years later, buying the latest gadget would wear thin, but that much-awaited trip you took to Europe or elsewhere will stay with you. Investing in yourself in the true sense of the word will yield richer dividends.
Well, these are the few pieces of advice that I could give our former selves if we look back now. Also, you learn things as you go ahead in your life. Each financial mistake you make now will turn out to be a major lesson afterward. But perhaps starting to save a few years earlier will help you stay more comfortable financially in your later years. A valuable lesson that you should never forget to incorporate.
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