Sometimes it’s hard to stay motivated to pay off those student loans or put money away for retirement when the end isn’t really in sight.
Why do I need to start saving for 65 year old me? Isn’t that a future me problem?
Well… yes. But, do you want to be able to choose to work until you’re 70 years old because you love what you do, or do you want to have to work until you’re 70 years old because you just didn’t save enough?
Being smart with your finances and planning out what you want your future to look like early simply gives you the freedom of choice.
Choice is good! Freedom is good!
Also, sometimes life happens and really doesn’t go as planned so it may be comforting to know that you have some securities set in place. I know it’s hard to think about, but you never know when you might be hit with a job loss or medical diagnosis. Financial security could allow you to be better prepared for the unthinkable.
Financial security could also allow you to take more chances and enjoy life more like starting a business or travelling more. Being financially secure may open opportunities you wouldn’t otherwise consider like going to your cousin’s wedding in Italy or taking that dream job in NYC.
As I said, keeping the motivation to put money away for the future and not spending it right then and there can be difficult when you don’t have a strong reason why you’re doing it in the first place.
Money is such a taboo topic these days and it seems like no one will even talk about it. If nobody will talk about it and nobody teaches this stuff in school, how are we supposed to know how to be smart with our finances? I’m here to start the conversation, or “air my dirty laundry” as my dad likes to say. Let’s talk money!
First things first, money does not define your self-worth. Everyone values different things in life so everyone’s goals, financial or not, should be different. However, money can lead to freedom, security and I believe it can ultimately lead to happiness as well.
But Alix, money can’t buy happiness! Read to the end and you’ll see what I mean. Financial security can open opportunities that you never thought were possible.
What Does The Future Look Like?
Retirement for millennial’s is going to look significantly different than it will for our parents. Pensions are rarely available anymore, and the whole “work for the same company for 30 years and retire” path is really not appealing either.
I’m still figuring out the path I want to take and the career I want to follow. But someday, I want to be able to live the life I want, whatever that may be, and have financial independence. To me, this means that I will be working a job that I love, not because I have to, but simply because I want to.
Who actually wants to have to work until they’re 70 years old because they didn’t save enough for retirement? I would rather choose to work even longer doing work that I really care about. Maybe it’s not even work, maybe it’s volunteering for a cause that is really important to me and I’m able to spend my time doing this because I’m not worried about how I’m going to afford to live.
What Am I Passionate About?
I created this blog because I am extremely passionate about helping others. I realize that personal finance is not a passion for everyone so I am happy to do the research and fill you in on the important stuff.
As I continue to see more possibilities of future career opportunities, I know that fulfillment and success won’t be possible for me without being able to help others in some way, shape or form.
What are you passionate about?
What Are My Goals?
As of right now, my long term financial goal is to invest for retirement while my mid-long term goal is to invest for a downpayment on a home. Why? Because I want stability, security and ultimately financial independence. I want to be in control of my life and I think that investing in real estate is an extremely important aspect of building wealth in addition to simply investing in the stock market.
My short term goals largely include travelling and honestly just investing in myself with education and experiences.
I’m not sure exactly what I want my future to look like yet so I am starting small and going from there. All I know is that I am starting to plan early and working towards financial independence for future me.
Can you think of anything you want to accomplish this year or in the future?
Start Thinking Outside The Box
I’m probably not the first one to tell you this, but you can literally do anything you want. Seriously!
I thought the only option was to follow the path of going to university, getting a good job and then pretty much just working a 9-5 until I die.
Personal finance has opened my eyes to so many other possibilities that I never even considered. You don’t actually have to work that 9-5 job for the rest of your life if you hate it. The internet has opened up so many job opportunities that were non-existent just a few years back.
Just because you went to school for finance doesn’t mean you can’t pursue art if that’s what you love. Or vise versa! Think about how you can turn your passion into a business and make it happen. I believe in you!
There is nothing wrong with following the traditional job route, I may end up taking that path myself. It’s just nice to know that there are other opportunities out there if you are unhappy with your current career or simply looking to make some extra income on the side.
Think About What You Value
What is important to you?
Knowing that I have control of my finances has allowed me to feel so much pride and freedom, it’s almost hard to describe. I know that I won’t be able to save close to 60% of my income for long, but I believe that just by starting these saving habits early, I will be better able to navigate bigger expenses and emergencies in my life as they come along.
To me, it’s not about sitting on a pile of cash, it’s thinking about what I’m going to be able to do with that money. What are my goals? How can I make my money work for me?
I don’t want to wait until retirement to travel, I want to enjoy life along the way while I continue to plan for the future. I also want to make sure that I can take care of myself no matter what happens in life. For example, I don’t ever want to be stuck in a job I don’t like and not have the financial security to be able to leave. All I want is the freedom to live a life that I love.
What do you want? What do you value?
Do you want to own a home? Why?
Are you dreaming of starting your own business? Why?
Everyone Is Different
Take some time to think about what is important to you.
Remember, I don’t own a car and I still live at home so I don’t really have any major payments in my life yet. Your savings and investment rate could be drastically different from mine and that’s totally okay.
Wherever you are in your financial journey, try not to compare yourself to others. As long as you are on a path towards your own goals, you should be really proud of yourself regardless of what the person next to you is working towards.
When starting to save and invest, it is critical to think about WHY you have decided to start. Yes it’s great to see that your investments are making money, but why are you investing in the first place? What is your money going to enable you to pursue in your life?
When times get tough, saving and investing money might not seem like a priority. It’s important to be able to think back to your why and remember what your money is going to do for you in the future.
Are you saving up for a house? Are you saving for retirement? Are you saving for the trip of a lifetime? Do you simply want to be able to shop at whole foods for the rest of your life? This could and should change the way you save and invest.
I hope this post will inspire you to start thinking about all of the possibilities of what you might want your future to look like. What is your why? Try to always keep this in mind as you follow along my financial journey to ensure that you are aligning with your own values along the way.
Disclaimer: I am not a certified financial planner or investment advisor. The ideas posted on this website are my own opinions on how I manage my personal finances. The content is specifically for educational and informational purposes and is not considered professional financial advice. Everyone’s finances work differently and you will have to do your own due diligence before making any financial decisions.
Pin it for later!
Leave a Reply