Financial Wisdom at 42: Advice to My 25- and 35-Year-Old Self
As I sit here at 42 years old, I often reflect on the financial journey that has brought me to this point. If I could go back and give my 25 or 35-year-old self some crucial financial advice, here’s what I would say.
1. Take Full Responsibility for Your Financial Future
No one is coming to rescue you from financial mistakes or missteps. Your money is your responsibility. You must encourage, motivate, and inspire yourself to make sound financial decisions. It’s on you to secure your financial well-being.
2. Surround Yourself with Like-Minded People
You may need to distance yourself from those who aren’t heading in the same direction financially or in life. Seek out individuals who share your financial goals or have achieved what you aspire to attain. Don’t waste time with people who hinder your progress; instead, build relationships that propel you forward.
3. Embrace Change and Be Willing to Adapt
Don’t be afraid to make changes and do things differently. If you keep doing what you’ve always done, you’ll keep getting the same results. Step out of your comfort zone, overcome fear, and make the necessary adjustments to achieve your financial dreams.
4. Prioritize Investments Over Material Possessions
Stuff isn’t as important as you might think. Instead of focusing on acquiring material possessions to look rich, concentrate on investing your money wisely. Let your wealth grow behind the scenes, where it truly counts, rather than showcasing it superficially.
5. Invest More and Start Early
Stretch yourself to invest as much money as possible as early as you can. The power of compound interest works best over time. Paying into your investments now, while you’re energetic and healthy, will pay off immensely in the future. Don’t postpone; the sooner you start, the better off you’ll be.
6. Don’t Procrastinate—Start Now
The longer you wait to take control of your finances, the harder it becomes. It’s challenging to suddenly ramp up savings and investments at 50 or 55. Start early to avoid the stress of playing catch-up later in life.
7. Take Care of Your Health
Exercise regularly, walk, and keep your body in good physical condition. Good health is essential to enjoy the fruits of your financial labor. There’s little point in accumulating wealth if you’re not healthy enough to enjoy it.
8. Forgive and Move Forward
Forgive your parents for any financial shortcomings and understand that they likely did the best they could. Holding onto past grievances only hinders your progress. Similarly, forgive yourself for past mistakes and focus on moving forward.
9. Focus on Positivity and Abundance
What you focus on grows. If you concentrate on negativity and lack, that’s what you’ll experience. Instead, direct your energy toward positive outcomes and abundance. Cultivate a mindset that attracts wealth and prosperity.
10. Cherish the Present—You’re as Young as You’ll Ever Be
Time waits for no one, and you are as young now as you’ll ever be. Don’t waste precious moments; seize opportunities and make the most of the time you have today.
11. Personal Growth Fuels Financial Growth
Your life and money improve when you do. Invest in yourself, learn new skills, and develop habits that lead to personal and financial betterment. Change starts from within.
12. Give and Help Others
Helping others isn’t just about expecting something in return; it’s about contributing to the greater good. Giving back is a small price to pay for the richness of life and can bring immense personal satisfaction.
13. Create a Financial Plan
Develop a clear financial plan to provide direction and guide your decisions. Without a plan, you may find yourself adrift, making choices that don’t align with your long-term goals. Let your plan be the roadmap to your financial success.
14. Control Your Reactions and Thoughts
You can’t always control what happens, but you can control how you react and think. Your mindset influences your behavior, which in turn affects your outcomes. Cultivate positive thinking to drive favorable results.
At 42, I’ve witnessed many people in their 25s and 30s make significant financial mistakes. While we might get away with missteps in our 20s, our 30s and 40s set the foundation for our future. Remember, the best person to take care of the older you is the younger you. Take good care of yourself now, and you’ll reap the rewards later. And always, extend a helping hand to others along the way.
