I’m young – I don’t need to be figuring this out now 😡
Thing is - I've met way too many 25+ year olds who wish they had figured out money sooner.
I've met too many adults who wish:
- That someone had explained to them how money works
- That someone had explained what compound interest is
- That someone had guided them into managing their money efficiently.
Do you want to be like all these 25+ year olds?
No.
Here are 3 simple reasons why you should care:
1. Starting now means less stress & more happiness
No more ‘I don’t think I’ll make it to the end of the month’. No more ‘I don’t have enough to pay this bill’. No more ‘I stress too much about money’.
Being in control of your money means knowing and planning where your money goes. The better you track the cash flow, the easier it is to budget.
Getting started with cash flow control now means you’ll always know how to get back into control - whether you’re 20, 30 or 40. And just think; the risk now is not as big.
2. Starting now means having more money in the future
And I’m not saying a few pounds.
I’m saying potentially hundreds of thousands pounds.
How? Compound interest.
Ben and Jill are saving and investing money.
Ben starts at the age of 30. He invests £100 every month until the age of 60. Taking an average stock market return of 7%, he will have £116,945.26 on his 60th birthday. Not bad, Ben.
Jill decided to be smart and starts at the age of 20. She also invests £100 until reaching 60. BUT! At the age of 60, she accumulates a whooping £247,154.26.
That is nearly double what Ben has, simply because she started 10 years earlier.
And the funny thing is that if Ben started at 30 but invested £200 instead, he still wouldn't have more money than Jill (quite a few thousand less)
With just £100/month and thanks to compound interest, you are accumulating a ton of money. And the sooner you start, the more you make 😉
Here are 4 other reasons you should start investing in your 20s.
3. Starting now means being ready for the #adult world
Adulting? 😕
It’s not as lame as it sounds.
What does ‘being ready for the adult world’ really mean? For me this means having:
- An emergency fund - meaning you won’t be in a rush and won’t feel obliged to take the first job you find.
- The right habits - you won’t fall prey to lifestyle inflation
- A financial plan - do you want to reach financial independence? Do you want to work on something you love? Do want to travel the world?
It’s not as scary as it sounds. Adulting is the ultimate way to live the best life you can, because you choose to be the one in control.
So there you go. Three pretty solid reasons why you need to take charge of your money.
Feeling overwhelmed? Don't worry, I will walk you through every step so you can take control of your money.
It will take some time for you to adjust and put everything in place. That’s ok. Better small steps than doing everything at once and getting so overwhelmed you quit (#me).
So our first step will be… budgeting.
Trust me, it’s not as boring as it sounds… because you can literally get it done in 10 minutes 😱
Click below to continue...
BUDGETING IN 10 MINUTES
For some awesome posts on financial mentality check out these ones:
