What are some financial moves you wish you made sooner?
My mother’s been forcing me to attend personal finance classes, courses, and seminars since I was 12 as even though we were destitute it didn’t have to stay that way.
In college I studied nursing, took everything she forced me to learn over the years and I’m the first generation to have 0 debt, a net worth above $200,000 despite paying for my college, braces, and car all on my own.
Now of all the things I’ve learned over the years here are a few I wish I made sooner.
#1. Has to be tracking my expenses because as soon as I started doing this i realized I not only had an egregious Amazon addiction, but I was spending damn near $8000 a year on fast food. I’m far from perfect by any means but I can say with complete certainty just tracking where my money was going to the dollar made me spend less.
#2. The 12.5% rule, I learned this one from David Bach who’s angle on it was you work 8hrs on average each working day don’t you think you deserve to keep at least one hour for yourself? Once I started autoinvesting 12.5% pre AND post tax I started feeling much better about my financial position.
#3. Focusing on savings rate not amount
The one determining factor of when you retire isn’t how much you’ve saved, but how fast you’re saving it. If you save 50% a year (which is WILD) you save 1yrs income each year and will have 15x your salary in 15 years. If however you save 10% that’s 3x your annual salary in 30 years. Point being the less you spend the less you have to save for more spending down the line.
How about y’all?