5 things I wish I knew about money in my early 20s

·       Your financial journey will be a rollercoaster – and that’s OK

⭐Going from a YOLO (You only live once!) to a FIRE (Financial Independence Retire Early) mentality is never easy

⭐But trust me, everyone starts from scratch – with no clue and builds their way up

⭐Treat learning finance like learning a new language – consistency is key and ensure it aligns towards your goals

·       Life can throw you a curveball any time so security is key

⭐Being prepared for a rainy day is crucial to good financial planning – I’d start by having a decent emergency fund which covers 3-6 months of your expenses

⭐Next, I’d consider looking into insurance – the sooner you get it, the cheaper! In the long run, it can save you £100s.

·       Inflation is real and it reduces the value of your money

⭐ Inflation is the increase in costs of goods and services year on year

⭐In other words, your £1 today will buy you more now than it will in a years’ time

⭐SOLUTION: Save your emergency fund in a high interest account and invest the rest (usually if you don’t need the money within 5 years)

·       You don’t need a cute outfit every time you go out

⭐There is a whole advertising industry out there making you believe you need all these things

⭐Consumerism is real and drives many people into debt

⭐It’s never a ‘good deal’ if it derails you from your financial goals

⭐Plus trust me, seeing your money pot grow is WAY more satisfying

·       Take the free money!

⭐Your employer will increase your pension contributions into your fund (if you do too!)

⭐By opting for increasing your pension contributions, your employer will match your % and sometimes even give you more!

⭐That’s almost a 10% increase in salary just increasing pension contribution.