Getting rich is not the goal. However much you need for the life you want to be living is the goal. Click To Tweet@savespendinvest
- Pay off ALL debt: Many young professionals think it’s unheard of to have all your student loan paid off in a few years but many smart young people will tell you otherwise. A good plan, a very intentional mindset and some detailed [not living like a pauper] budget and you can clear your debt in a few years after uni.
- Create a budget: Don’t roll your eyes. Unfortunately budgets have a stigma behind them which is that they are for nerds and they’re all about monitoring every number in your account. Right? Wrong. Budgets are sexy and easy. It’s as easy as creating a fixed amount/percentage you’d like to save and invest, automate it and enjoy the rest of your money! Easy! Not everyone cares about how much they spend on Starbucks and that’s ok too 🙂
- Join your firms pension plan: a 401k by the Americans is the equivalent of a Personal Pension Plan. In a nutshell, it is you contributing a fixed % of your income towards retirement. Which may not sound like fun. BUT here’s the cool part, you ready?! Your employer matches that. In other words, you get free money. They may not always match your exact fixed % but they’ll match a good enough amount and that’s good too so #Winning!
- Saveeeeeee: save to invest, save your investments, save to put down a deposit or buy a home, save to travel, save for your big 25th birthday, save for… OK WE GET IT! There’ll always be something you’re saving for so you can never save enough. Set goals and prioritise. Have multiple savings account if it helps. But don’t just always think you’ll have enough money in your current/checking account to cover everything – you won’t.
- Create an Emergency fund: Yes, yet another *important* thing you need to set money aside for. We live in a world full of uncertainties as we have seen from all the recent world events. You can’t live it to chance or stay thinking “it can’t be me”. Emergency funds secure you in the face of emergencies. It’s generally advised for it to be between 3-6 months living expenses but of course you can build this up overtime and increase it as you go along if you want.