Hey guys! This is Justin Goodbread with Financially
Simple. So I have 10 tips for you if you’re under the age of 30 on how you can lay the
foundation now that later, when we’re 40, 50, and 60, we’re receiving our financial
success that we dream of. NUMBER ONE, we’ve got to learn between age 20 and 30 what a
work-life balance is. So many people, when they’re in their 40s and 50s, spend all their
time at work, and they forget why we work. We work so that we can live. We don’t live
to work. So let’s learn work-life balance whenever we’re in our 20’s. NUMBER TWO, now’s
the time to invest in yourself. There’s no one, outside maybe your momma, there’s no
one who has bigger aspirations for you, than you. Now’s the time when you need to realize
who you are, how God’s made you, and what dreams and aspirations you can achieve. Invest
in yourself now. NUMBER THREE, we now need to learn how to plan and not how to save.
See, so many people think that they can save their way to retirement. I’ll put a little
bit of money in the bank here and over here. It’s not going to happen. If I wanted to go
on a trip, and I had no destination or I had not planned where I was going, I don’t know
where I’d end up. If I had a trip, though, a vacation so to speak, and I knew where I
was headed, I would know the fastest route to get there. I would know how to deal with
detours. I would know all the pit stops along the way. So plan your finances. Learn to plan.
NUMBER FOUR, so many of us, and I did this, in our 20’s are so worried about 15, 20, 30,
40 years from now. We can’t wait to get there. Time out. Let’s stop. Go back to making our
short-term goals. So a short-term goal may be, “You know what? I’m going to pay my student
loan off in a five year period of time.” Man, you’re a rock star if you knock that out!
Go ahead and set some very short-term goals that you can achieve with a little bit of
stress, and work toward that end. NUMBER FIVE and NUMBER SIX go hand-in-hand. So number
five is spend less than you make. Number six is build a budget so you know where to spend
the money. We’ll put those together; five and six go hand-in-hand. So many people get
in trouble trying to “keep up with the Joneses” as the old adage goes, that we end up getting
in credit card debt, or we go out and buy toys. You know, it’s not the time to do that
when you’re in your 20’s and 30’s. We need to learn to spend less than we make. So let’s
go ahead and learn how to reward ourselves with some nice purchases or some nice events
by budgeting to reach that goal. NUMBER SEVEN, learn money. Now, I’m not talking about grabbing
a billfold, grabbing a dollar out of your billfold or your purse, and learn it, and
memorize it. No, I’m not talking about that. I’m talking about they’re are many people
who’ve written some really good books on how money works, how investing works, how insurance
works, how debt works, how taxes work, and all these things. Now’s the time for you to
learn how money works. If you learn how money works now, then you’re so much further ahead
than many people I see in their 30’s, 40’s, and 50’s who are just now learning. Hey NUMBER
EIGHT, we can do this. Take a risk. “What do you mean, Justin?” If you had a business
idea that you’ve thought about, go for it. If you fall flat on your face, everything’s
cool, man. You don’t have to worry about making a mistake that’s going to leave you destitute.
When we’re in our 20’s and 30’s, it’s time to take risks. It’s time to be aggressive.
NUMBER NINE, never, never, never, never, never, never borrow money for anything except for
an asset. What’s an asset? An asset is like your house, or an investment that’s going
to appreciate over time. A car is not an asset. It’s going to depreciate over time. So let’s
learn to only borrow money for those things which are going to make us richer, or which
are going to make us wealthier, or which are going to help us reach our goals. I know many
clients who have borrowed money to buy a business. Great move. That’s an asset. I know many people
who’ve borrowed money to go on vacation. Dumb, dumb, dumb, dumb, dumb. Don’t do that. NUMBER
TEN, this is a big pet peeve of mine. Take advantage of “free” money. Well, what do I
mean by that? One of the biggest ones I see that people miss is their 401(K)’s company
match. So if you’re a W-2 employee, and your company has a 401(K), and they’re going to
match like dollar for dollar or 50 cents on the dollar, at least contribute that much
money. So let’s say the company is giving you 4% if you put in 6% of your income. You
really, really need to put in 6% of your income to get 4% free money. Now’s the time, between
age 20 to 30 to start looking for that free money. So those are 10 tips that you can use
now, if you’re under the age of 30, to help you build the foundation to reach your long-term
goals. You can be wealthy. You can be financially independent. So guys, this is Justin Goodbread
with Financially Simple. Remember, let’s make our lives, at least, financially simple.