“10 years from now you won’t remember the expensive shoes you bought, but you will love looking at the extra zero in your bank account”
FIRST: STAY OUT OF STUDENT LOAN DEBT
Unless someone has a clear career path they want to pursue, where a certain college is a REQUIREMENT to get there, it’s usually best to go to an inexpensive community college first, save the money, and then figure out what you want to do from there.
SECOND: GET A JOB
Getting a job would be one of the best experiences you can gain, there is definitely a difference in the type of person who has work experience versus the person who has none.
THIRD: STAY OUT OF CONSUMER DEBT
This means that you don’t go and rack up a whole bunch of credit card debt to buy stuff you don’t need, don’t go and finance an expensive car, don’t go ballin’ out to impress your friends with how much money you have, all of that is stupid, it’s reckless, and 10 years from now, I guarantee you’ll nearly regret all of it.
FOURTH: BUILD YOUR CREDIT SCORE
All you need to do to get started is open up a secured credit card with a $200 limit, put a few expenses on the card every month, and then pay it off in full EVERY MONTH!. You’ll pay $0 in interest, you’ll build your credit history, and over time, and you can continue adding in new credit cards to the mix.
FIFTH: LIVE BELOW YOUR MEANS
The older you get – the less “socially acceptable” it is to live like a broke college student, and the less you WANT to live like a broke college student. So, now is your chance to get away with doing all the cheap and frugal things you’ve always wanted to do, before people call you weird for doing them.
SIXTH: TRACK YOUR SPENDING
You can’t effectively live below your means without knowing where you spend money, how you can cut back, and figuring out where it all goes. I’ve been tracking every single expense on Mint.com and PersonalCapital.com since 2012…and it’s helped me out a LOT in terms of optimizing my finances.
SEVENTH: TAKE UNCOMFORTABLE RISKS:
I’ve really found that the WORST place you could be in your 20s…is COMPLACENT. If you’re satisfied where you are right now, but you know – deep down – you aren’t living up to your full potential – the ONLY way to break free from that is to get used to putting yourself under pressure. You HAVE to start making uncomfortable choices and taking calculated risk to get yourself ahead, even if it isn’t the EASY decision to do.
INVESTING FROM THERE:
Open up a RETIREMENT ACCOUNT. This is just an account that you can invest within that saves you money on your taxes…for example, some of these accounts allow you to use them as a tax write off, and others allow all of your profit to grow tax free…just depends on which ones you want to use.
Roth IRA: $6000 Per Year Post Tax Money
Traditional 401k: $18,000+ Per Year Pre-Tax Money
HSA / Health Savings Account: $3500 Per Year Pre-Tax Money
Look into the 3-fund portfolio, and this gives you the ULTIMATE diversification across everything…so, you’re basically just investing in the entire world in the long run – and even if one or two industries goes down, plenty of others will be there to pick up the pace.
Now, in terms of any other investment specifics, just remember this really easy saying: time in the market beats timing the market. That’s it.
And Yes! Also drink 20 cent iced tea instead of going to Starbucks every-time. if you really want Starbucks, buy SBUX
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