In a Financial Chronicle article entitled, “Start financial planning as soon as you get first job,” the writer tries to impress upon young people that they don’t have to worry about the amount of money they have and should instead think about the amount of time they have to put money aside for the future.
“The biggest asset that you bring to the table in your 20s is not how much you are earning, but the amount of time that you have on your side to make your money grow. The decisions and actions that you will take now will have a tremendous impact on your future.”
Even if you don’t know exactly what you want to do (travel, buy a house, start a business, raise a family), you can still start to keep an eye on your finances and work to grow your money because laying solid financial groundwork can be an excellent foundation for any endeavor.
One thing you can do right away is start an emergency fund. Experts will tell you that you should have 3 to 6 months or maybe even a full year of expenses put away in case you need it. If saving months of expenses seems daunting, start small. Work towards saving one paycheck and then keep going.
And when you’re in your 20s it’s not too early to start thinking about your financial future. You don’t need to worry but it can help to consult with a Fee-Only financial planner who can help you learn how you can get on the right track and show you the advantages of starting to save sooner rather than later. Rather than think of saving as an abstract idea, a Fee-Only financial planner has the tools and knowledge to make it clear just why you should not postpone financial planning.