When you picture your future, you no doubt imagine yourself comfortable financially. If you could talk to this successful future version of yourself, what advice would you they give you? Here are some pieces of financial advice they might pass along.
Wants vs. Needs
Identifying wants vs. needs is a skill that will serve you well for the entirety of your life. There’s an art to fixing things and ‘making do’ with what you have that is becoming less and less common. Instead of fixing something, many just throw it away and tell themselves they need another one. If you struggle to distinguish between the two, write down everything you need to survive and function on a daily basis. Take it down to the bare bones of necessities. Anything that doesn’t make it onto that list is a want. Making clear distinctions between the two can save you money in the long run.
Live Simply
One of the greatest challenges of our generation is simplifying life. We tend to get so caught up in having the latest and greatest things. This results in wasting money on material goods we simply don’t need. At the end of the day, do you really need a closet full of cheap clothing? Do you really need 30+ pairs of shoes? When you look back on your life, you won’t miss meaningless purchases. Living simply has a host of benefits. Simplify your life and see how you feel!
Have Fun
Budgets and savings are very important. However, it can be easy to get so caught up in rigidly saving that you forget to have fun. What good is money if you don’t know how to enjoy it? Now, this doesn’t mean you should be irresponsible. Once you have an established budget, find out how much of an allowance you can afford to give yourself each month. It doesn’t have to be a lot, but give yourself permission to spend some money each month. Go see a movie, head to a restaurant with friends, get a pedicure or buy yourself a book. Remember, being financially responsible and enjoying your money are two things that can happen at the same time.
Ask for Help
When preparing for retirement, you’re planning out finances for 20-30 years. That’s a long period of time and you must get it right. The advice of a professional will be invaluable to you. They will help you develop a game plan that will make planning for your future successful. An article written for ig.ca states, “Working with a financial advisor to create a fully comprehensive financial plan brings great benefits, including increased investment discipline and greater savings. Again, the earlier you begin, the greater your rewards.”
Imagining the financial advice your future self would give you can help steer you in the right direction. If you want to be successful, make simple changes today that will help you both achieve your goals and enjoy the process.