You are never too young to start thinking about and preparing for your financial future. From learning about the power of compound interest to knowing how to live within your means, there are many steps you can take from an early age to set yourself up for financial success. As a young worker, you can take several actions to begin securing your financial future early on in your career.
Invest in Retirement Accounts
Do not make the mistake of putting off investing in your retirement accounts until it is too late. Company values are more important than ever for younger generations of workers, and this applies in the realm of investing. Harness the power of compound interest by investing as soon as you can. Be sure to explore all of your options, including employer-sponsored 401(k) plans, individual retirement accounts (IRA) and Roth IRA accounts. Socially responsible investing options will help you feel good about saving your money, and they are particularly attractive options for millennials and Gen Z workers.
Add Skills to Your Resume
Building your resume early in your career will prove to be invaluable as you explore different paths in your work trajectory. Continuously adding to your skill set shows that you are versatile and willing to step outside of your comfort zone to take on new responsibilities. Do not let a lack of the right skills and knowledge hold you back from landing that dream job further down the road. Adding these skills when you are young and before you start a family is an ideal way to use this time to your advantage.
Live Within a Budget
It may be tempting to live large when you begin earning your first real paycheck. While you certainly deserve to reward yourself for a job well done, it is also important to balance this indulgence with the practicality of living within your means. According to Derek Moneyberg, spending randomly without a plan is a quick trip to being broke and ending up in debt. Once you learn to live within a predetermined financial plan, you will be able to start saving money away for big-ticket items, such as a new car or a house.
Don’t waste this time that is filled with opportunities for financial gain. By approaching the start of your earning career with financial savvy, you will put yourself in the position to build your wealth and obtain peace of mind.
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