Every financial website and every financial planner advises one thing first: Start financial planning early.
You can do the math. If you were an especially prescient 18-year-old and you saved $100 a month for 50 years, you would retire rich, assuming you invested your money and didn't fall into debt. It doesn't even matter how much money you make over your working career — you could easily retire with seven figures.
Time, persistence, and compound interest. These create wealth.
But what does it take to look that far ahead and move throughout life with those goals in mind?
* Create a budget and live below your means.
* Set financial goals. You can set short-term goals (vacation) for everyday living, and long-term goals for retirement.
* Prioritize you goals, not comfort or appearances.
* Emphasize income. Extra jobs and extra hours equal extra income — easier to do when you are young, energetic and healthy. Invest in your youth.
* No debt. Every credit card or loan payment you make takes away from your available income.
* Pay bills on time, every time. No late fees.
* Protect yourself with an emergency fund. Emergencies can be devastating to your plan. Keep a two to three-month emergency fund.
* Automate your savings account contributions.
* Think long-term. When you add up your savings for a year, it might not seem like much, but over 10 to 20 years, it becomes valuable.
* Invest. Participate in your company's 401K. Set up an IRA.
Rick Good spent ten years in the newspaper business, including with The News & Observer (Raleigh, NC) and The Greenville News (Greenville, SC). He co-wrote, with Melinda Coleman, Rutledge to Riley: Governors of South Carolina, 1776–Present (Published by The Greenville News), and is the author of Mind Games Trivia #1 (Amazon). He has recently spent 15 years creating original trivia content through Sounds Good Mobile Entertainment and continues that with his new company, SGME Software. He edits The Smart Reader’s money, real estate, and business coverage.