The best part about being young is that you think you will live forever. The worst part about being young is that you think you’ll live forever, so why not live for today?
However, the odds are, thankfully, that you will live much longer than today, and those days need to be planned and provided for.
I have advised many ‘baby boomers’ over the years and would like to remind all of the young people out there reading this that, once upon a time, these ‘oldies’ were as young as you!
Sure, they might have travelled around in a horse and buggy, but the challenges they faced in building wealth were just as real.
When they were starting out, there was very little credit available and it was hard to get. Believe it or not, credit cards were yet to be invented. This meant that they had to develop great saving habits very early on, because it was the only way to get ahead.
The power of these habits is unbelievable – now that most baby boomers are retired, they still can’t help but live within their means. This is a great thing!
They can now relax because, even while living a wonderful lifestyle, many of them will never spend all the money they have saved.
Good saving habits should be the number one priority for young people. It’s like going to a gym – the first month is pain and torture, then your body adjusts and you get almost addicted to the healthy endorphins.
- More than 10 per cent of income
- Seven to 10 per cent
- Two to six per cent
- One per cent of income or no savings