7 Things all Seniors Want Young People to Know About Money

Don't you ever want to go back and give your younger self, advice about life? Will we really listen though? When it comes to money, there are some things we certainly would do differently had we known what we know now. In a recent article by MSN Money, several senior citizens talked about what young people should know about managing their money. Here are my seven favorites.

#1. Make sure you are educated in finances.

Now, this is not to say that you need to rush out and get a degree in financing or even business, but understanding a little bit about how things work in the business world and how finances, stocks and bonds, savings, CDs and interest rates work will put you ahead of the game. Simply understanding will really help make your money work harder for you and smarter.

Related Post: Are You Throwing Money Away? 10 Places You May Be Without Knowing

#2. Try every way possible to pay off your mortgage early.

Now, this could be done a variety of different ways either taking out shorter loan terms such as 10 years or 15 years, paying extra toward your principal each month or making a by monthly payments, which will actually at least one and maybe two payments per year going straight to principal. Paying off your mortgage early is a great way to save money for retirement because you won't be making mortgage payments while you're in your 60s and 70s.

#3. Don't stop making payments after something is paid off.

What this means is if you are making a $300 car payment each month, once the car is paid off continue making that payment to a specialized account or to your retirement account. You are already accustomed to making that payment each month so by doing so and paying yourself first, you easily add up a lot on retirement.

#4. Don't neglect to build wealth.

An author of finance and life decisions stated that the greatest value in earnings and saving monies is the option it gives you. Having wealth gives you options not necessarily meaning that money is the root of all happiness. Wealth can come in a lot of different facets and just because you're not making a ton of money in one area doesn't mean that you don't have a successful life.

Read more: 4 Tips to Better Home Financing

#5. Buy good quality items that will last.

I think somewhere in your 30s and maybe even your 40s it hits you, "do I want to buy that table because I need a table and it's cheap, or do I want to buy a table that will really last even though it's more expensive?". Start buying items that will last, are of good quality and maybe will last a lot longer. You will enjoy the item more and value it more.

#6. It's never too early to save for retirement.

You've heard that old adage that people that start saving for retirement in their teens have millions of dollars more than those that start in their 40s. This is truly the case because of compounded interest. The earlier you start saving for your retirement the more you will have and you'll be doubly glad that you did.

#7. Follow your instincts and your heart.

Our instincts will typically tell us if something is dangerous or too risky. Follow your instincts, go with your dreams and have no regrets. You can't make all the mistakes in the world, you have to learn by someone else's so take that advice, look at the mistakes that others have made and use your instincts to follow your dreams down a path that really brings you happiness. If you're hesitant, apprehensive or something just seems too risky, it probably is.

Get started on your life investments today. Contact my office today to talk about refinancing your existing mortgage or getting a new one and building wealth for a happier more successful life.

 

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