3 Financial Pieces of Advice I Wish I’d Learned Sooner

Better late than never they say…

Did you ever felt like ignoring good advice?

It seems it was what I did in my early twenties.

Just out of university, we feel we have everything sorted out.

We feel we are ready to take on the world and live our wildest dreams.

But one day we wake up…

The Reason Why Millenials Save Nothing

I already alluded to the fact that Millenials have serious issues when it comes to saving money. You can read my take here.

True, that there are exceptions, but most of us did not realize that we need to save money for our future.

The pension system is broken and we are likely to work many more years than our parents.

But we forget the reality and just focus on what dreams we can buy today.

Millennials live in a constant rush because we can have almost everything at a distance of a single touch.

Our life became too easy and we haven’t felt the pain our parents did going through a financial crisis.

We choose to ignore the risks of our generation.

The Change of Mentality Is On Us

Becoming interested in personal finance and learning about managing my money is one of the pieces of advice I would throw at anyone at any time.

I did my journey alone but today no one has to.

We have so many sources to learn from but we lack the will to do it.

We argue that we lack the time or that we do not understand finances.

The surprising fact is that most of these excuses come from highly educated individuals. The same people that spent years learning their current job.

We rather search for our next travel destination and whether my credit card limit allows me to do so.

What I’ve Learned Through the Years

I became focused on my numbers and how I could protect myself from an economic downturn or a major financial hit in my life.

I had to do major changes in the way I was living my life.

Living without insurance is just like riding a motorcycle without a helmet. Sure you can do it but one life will bite you.

It is not about living in fear, but being ready to deal with it.

So I religiously started practicing some of the actions I will just write about.

Think of it as advice I would urge you to integrate into your life.

Pay Yourself First

Paying yourself before paying someone else.

Simple but one of the most effective actions you can do.

Set up automatic transfers so money is routed to a savings account or an investment account.

Figure out the monthly amount you do not need to cover for your expenses.

If this amount is not above 0, either your income needs to increase or your expenses need to decrease.

Pay Off High-Interest Debt

Not all debt is bad, but high-interest debt kills us silently.

High-interest debt can grow like a snowball and it might become a huge problem if not handled correctly.

Know how much you owe and how much interest you are paying.

If you are not able to grow money as fast you spend it, you need to go the root of the problem.

Pay off those expensive loans and credit cards as fast as you can. Otherwise, you will be working the next month or years for nothing.

Live Below Your Means

This one is hard but brings an amazing feeling when the numbers start working.

Your income might not be there tomorrow. How would you be able to live? How would you adapt?

Separate desires from needs.

Needs are all you need to survive. Everything else you can theoretically cut.

Establish targets for both needs and desires with some room for uncertainty.

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Disclaimer: I am not a financial advisor. Always do your own research when investing.

This article is for informational purposes only, it should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions