Do you ever run into a problem and think to yourself, “wow, it would have been helpful if I had known about that”? I have! So, therefore, today I’m going to tell you about 3 money lessons I wish I had learned sooner.
#1: Saving for Retirement
Now, we have all thought about retirement at one time or another, but one thing that matters significantly when planning for retirement is starting to make contributions early on in your career. Be sure to create automatic contributions to savings and retirement.
These can always be adjusted but setting the automatic contribution up is the #1 key to success when planning for retirement. Set it and forget it.
#2: Emergency Savings
Not only is saving for retirement important but also is creating an emergency fund of 3-6 months of expenses in savings. This will prevent you from taking on any unnecessary credit card debt. It is always best to be prepared for any situation. Having a ”money safety net” can help prevent you from scrambling for money if a situation occurs.
#3: Compound Interest
The power of compound interest! Start small but contribute early. When you start early, you can afford to put away less money per month since it is on your side. Compound interest causes your wealth to grow faster. It makes a sum of money grow faster than simple interest because you will earn returns on the money you invest and returns at the end of every compounding period. This means that you do not have to put away as much money to reach your goals! 1
Have any more questions? If you would like to set a financial plan in place to reach your goals, reach out to me at this link here!
1 Source: Investopedia
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