If I had a time machine, I would track myself down at age 25. By age 25, most of the “random fun” had been purged from my system and I was ready for something “more”. Here are 6 things I would say to the 25-year-old version of myself to help fast track the learning process.
1) Budget your fun. Having fun is a must, at any age. The intent here is to have fun on a budget. More quality over quantity. I could erase 50% of the times I went to the club or bar, and still have the exact same memories.
2) Read a finance book. Reading a book is like entering a wormhole, it “folds time”. This means that it allows you to learn quickly from someone else’s successes and failures. I wish I had read a finance or life book earlier in life. A good book is “I Will Teach you to Be Rich” by Ramit Sethi.
3) Stay out of debt. Being young and building a family is extremely expensive. Weddings, children, college, and homes will break the bank. Have a plan. Save for these expenses. I know that saving is boring, but paying off a ton of debt is boring AND expensive.
4) Save and Invest. Learn all the buzz terms such as 401K, TSP, stocks, index funds, bonds, etc. These investment vehicles will make you extremely successful. Learn them inside and out and employ these to their fullest extent.
5) Buy a home early. Buying a home is super scary and intimidating. I know, I have bought 3 of them. Each time I have the same pit inside my stomach. However, once you get past the initial pain, it is very rewarding. It does pay off in the long run.
6) Generate additional income. Building multiple streams of income is a must. This will help you achieve your financial goals exponentially faster. Not only that, but it will also be a hedge in case your main job disappears. It is always good to have additional income during good times and during the bad.
The final bonus way to prepare for your future life would be to love with all your heart. Find someone you love and love that person unconditionally. Don’t waste time with someone that is not in your future.
Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
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