🌼7 Money Lessons I Wish I Knew When I Was 18 (HIGHLY RECOMMENDED)
They’ll help you at 40 too though.
#Put your money to work, now
You don’t have a decade to “waste”.
It’s time to start making your money work for you today. This way you get to retire in your 40s instead of your 60s or 70s.
Your 40 year old self will thank you when you have a few hundred grand laying around.
Read also: The only 4 ways you should ever spend money (wow, so witty)
#Savings rate matters
If you make 50k and save 10k your savings rate is 20%. You’re living on 40k just fine, great!
Let’s say you get a new job and make 80k and still live on 40k. Now your savings rate is 50%.
This ties in with not inflating your lifestyle.
I understand the desire to live better once you make more, but fight it.
Because if you can fight the urge to upgrade now, you can live free years sooner.
If you can stick to that 50% savings rate at 40k, you’d have 630k after 10 years. Imagine being 35 with 630 sitting in your account?
#Acquire as many assets as possible as often as you’re able
Become obsessed with buying assets instead of things.
Every time you buy something it comes with its up front cost and its ‘down the road’ cost.
Build toward freedom not a house full of junk.
You don’t have to work for others forever
It’s not a requirement to work a 9–5 from 18 until 65.
Wages used to be fairer and pensions existed for most US workers. This is not the case anymore.
And while I’ll work until I die (by choice), I don’t necessarily want to work FOR others until I die. I want to work on projects WITH others.
Read also: 3 daily habits all millionaires have (digest this)
#Financial knowledge is the biggest missing piece in your education
You can be educated on so much and yet still fall short financially.
Because it’s not brains alone that help you here.
It’s understanding your psychology and learning how to create a money mindset.
#Taking risks is your safest play
Savings accounts are “safe”, right?
Except you knowingly lose money every month to inflation.
Your money isn’t safe there.
People who are willing to take some risks, benefit from doing so.
Mind you, being a moron and throwing all of your money into a single alt-coin is far riskier than a savings account.
#Dream big then work smart & hard
Set a big goal. Or goals.
Then get to work. Once you have a solid goal, it becomes a lot easier to dig in.
It’s also wise to build goals that you’ll never get sick of. Mine are financial freedom and living semi-off grid. I’m not going to wake up one day and find myself tired of building toward freedom.
CONTRIBUTED BY Cait Mack
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