What your Grandpa would tell his 25 year-old self.
With age, (usually) comes wisdom, awareness and that wistful term: hindsight.
Are you heading into retirement soon? Or are you wedged in mid-life misery with mortgages and money woes wishing you could tell your younger self a thing or two? Or maybe you’re that 25 year old who could really benefit from Grandpa ’s wisdom?
If you could go back in time, what would you tell your 25 year old self?
We’ve prepared a little speech for that youthful and slightly reckless past version of you, and it goes a little something like this:
- Say “No” occasionally
It’s simple but it’s something we often don’t do until later in our lives. Our greatest asset is our ability to earn an income and this ability diminishes over time. Building wealth begins with savings.
- Learn to love … a budget
Aim to live within your means and spend less than you earn. Living pay cycle to pay cycle might feel risky and fun, but a little planning goes a long way and can make a big difference to your future. Budget, prepare for expenses, resist credit cards and after-pay (was that even a thing when you were 25?). Allocate your spending and when it’s gone, it’s gone.
- Hide money … from yourself
Be serious about saving – consider it to be an expense, take the money out and put it somewhere it can’t be accessed. (No, not just an envelope in your drawer that you invariably steal from towards the end of the week). Do something with the money to prevent you from accessing it – a managed fund, shares or a term deposit.
- Get excited about your super
Anyone who is about to retire is likely to tell you, they wished they’d cared about their super sooner. As a nation, we have collective ‘super apathy’. We think it’s boring. Retirement seems a lifetime away. But super is a legal tax structure by which you can minimise tax and grow your investments and new retirees share a common insight – they’ve seen the power of investing over decades. It’s worth being interested in your super early.
- Monitor your mortgage … closely
Salary goes in, mortgage payment goes out. Month, after month. But, what if you had a look at those fancy repayment calculators? What if you had seen how much interest you could save over the life of your loan, if you’d topped up your payments, even by a small amount? You might have paid your loan off years sooner! Better still, what if you’d been really proactive and checked the health of your mortgage every few years? You could have saved thousands over the life of the loan by regularly shopping around for a better interest rate.
- Embrace investment – it’s for the young!
Investment is not just for the old and it’s not just about property. Investment is varied and more accessible than people think. Young people can invest and should. The more years you’re invested and growing your money, the better off you’ll be when you’re older.
The moral of the story? If your younger self was only a little more interested in your financial future THEN, it could have made a significant difference to your financial health and wellbeing NOW.
Don’t worry, it’s not too late. Our team of financial advisers can help you create new habits to combat any dodgy decisions you made when you were young, wild and free.
Wisdom is not just for the old. Be wise, young person. Contact us today to plan for your financial future. Whether you’re 25, 35, 75 or anything in between, our financial advisers can help you live your best life now, and in the future, and avoid the need to go back in time and give your younger self a stern talking to.
