In the first post of this series, Part 1, I wrote generically. In this post, I will write more specifically to young people, but most of it will apply to everyone.
Start to accumulate cash as quickly as possible. Doing this will do multiple things. First, it will insulate you when unexpected costs arise, and they will. Second, having cash available when opportunity arises will allow you to be able to take advantage of those opportunities.
Think of yourself as a business rather than an employee at every job. Throughout your life, look for opportunities to create multiple sources of income. If my friend from the previous post had done this, losing his job would not have cost him so dearly.
When someone does hire you, you will be introduced to retirement accounts for the first time. Some of you will be offered a 401(k), others such as teachers will be offered a 403(b). Assuming that you are saving as we talked before, when you decide to participate in your company’s retirement account, be very conscious of fees. Take a look at an example of how much a small fee can cost you over time here. Learn this now!
You will be inundated throughout your life about how important it is to save for retirement. Educate yourself on this. You might find more freedom investing outside of a retirement account in things that will create multiple sources of income without the restrictions. Income is what creates freedom not how much money you have in a 401(k), IRA, etc.
Look around you when you are in cities. Notice the names on the largest buildings and stadiums in most towns.You will see the names of banks, insurance companies, and investment companies on many of these buildings. Remember this when you are deciding who to work with and think about whose money built these buildings.
If you are going to invest in the stock market, learn to do it yourself or when using an investment adviser, know exactly how much you are paying for said advice. Take a look again at just how much 1-2% can cost you.
Take control now.
I am looking for opportunities to teach these topics to schools, churches, to employees, and as many people as possible. You can do this yourself, but you don’t have to do it alone.