I was 20 when I got my first full-time job. I was fresh out of college and all I knew was to get a job as soon as possible. I was pretty lucky and was employed almost immediately after graduation. Fast forward to now, after 8 years of working (Yes I am 28 this year), I am still broke. This is time for some reflection and I found myself saying 'If only I knew this then!' and so here goes...
I wish I knew the importance of saving regularly for rainy days
I need to emphasize that it is saving for RAINY DAYS and not for buying the next new mobile phone or laptop or spending them on holidays etc. It is so important to have that emergency fund because we never know when we need that. It doesn't matter how much you set aside as long as you are regularly stashing money in your emergency fund.
Save a portion of your salary and divide them into savings and investment accounts
Yes, it is about saving and not spending money again. I know we are not earning a lot of money and people may be complaining how can they be able to save so much money. I will like to emphasize, it does not matter how much you are saving as long as you are doing it. You can start small and increase as your salary grows. I am conservative and so I feel that it will be safer not to invest all the money in shares or blue chip stocks. Maybe 30% in savings and 70% in investments like blue-chip stocks for dividend income. Investing will make the money works harder since interest income from banks is low.
There is no need to buy everything you WANT
Most of the time I spent money on things I want rather than need. I saw this marvelous looking bag that can compliment any outfit but it cost 30% of my salary. So I will save up to buy. In actual fact, I have tons of bags and there is no need for this bag. I have been giving myself the reasons to buy things that I do not need. The consequence was an almost empty bank account.
I wish I have keep track of my expenses diligently
I have no idea how much am I spending on food, bills, entertainment, holidays etc. I just make sure my bank account has money and that was a very foolish act. If only I clearly look at the the way I spent my money, I will be scared to death because on some days, I might have spent more than I earned.
6 Jars Money Management System
I wished I have read about this when I was 20. This is a good tip for those who wants to know how to allocate their money wisely. You can read them here.
Well, this is for me and I believe the wishes will differ according to the individual spending habits and traits. It's never too late to change and so I wish when I'm 38, I will not have such regrets again.
