Four Pillars of Income Financial Freedom Blog

I’m talking about, lets say your in your 40’s, you’ve gotten yourself very wealthy through your life but when you got out of school (or dropped out) you messed around, jumping job to job, partying, dating and by the time you were 30 you began to get smart and learn from your mistakes and starting becoming smart with your money. Lets say you re-live your life back to 18 or 20, what steps would you take to become wealthy and retire young? Thanks!

I’m 39 and if I could do it all over I would do a few things differently. Here’s a few points

The most important thing I can tell you is learn the basics about money when you are young and try to follow some general principles of managing you rmoney and this will put you well ahead of most of your friends etc….. Basic skills for managing money are not taught in school and most parents struggle to teach them to kids so most people learn the hard way. Most young people don’t see the value in saving for retirement in their 20’s but then all of a sudden in your 30’s you realize you have to. Read some basic finance books such as The Wealty Barber is a great read and explains the basics and ask people around you to learn what they did.

Don’t spend more than you earn and save at least 10% of what you earn.

Don’t ring up credit card debit. More importantly understand credit card debt and read the print. Always pay credit cards in full every month. Paying minimum balances means that you will continue to pay all your life (or for 30 years).

Live your life but prepare for your future and by that I mean save for you retirement. It’s the last thing you want to do in your 20’s but a tiny bit will help you in the long run. Personal finance 101. If you can put away $50-$100 per month in your 20’s it will go along way in your 30’s. If you want to buy a house, in CDA you can borrow up to $20,000 tax free out of an RRSP and then you do not have to pay it back for 15 years.

Don’t waste your money and don’t blow your money. Don’t be cheap but don’t just blow you rmoney. Think before you spend, do I really need that.

Learn to be humble. Do you have to have the latest pair of $150 jeans or do you really need that new toy for your car. If you always live that way, you will never have money in the bank. Saving money is not popular but learn how to do it and you will build wealth.

Learn to negotiate. When I first met my wife, she was embarrassed at me asking for a better price. She soon learned that this is part of life and if you don’t ask, you simply give the shopkeeper more money. Ask for a deal and you will get it at least 50% of the time. For example if you are buying something for $350 you can ask what kind of deal they are willing to give you. You may be able to pay cash and get a deal and/or have them waive taxes. Taxes along on $350 are about $50 (in Ontario at least) and would that money not be better in you bank.

Most importantly, their is no get rich quick scheme. They don’t exist. Making money and being financially sound is hard work. If you want to retire young learn how to save young. Unless you marry rich, inherit money or have a real high paying job it’s not easy but if you read up on money and understand "personal finance" you will become wealthy.

Good luck