This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
Don’t be basic
I always maintained a mindset: I never wanted to be broke.
If young people took money more seriously, pandemics, recessions, and depressions wouldn’t affect their financial futures so heavily. If you aren’t doing the following already, I encourage you to get to it:
Tip 1
Open up a ROTH IRA (post-tax retirement account), and invest the max amount each year. This will save you so much time, stress, and financial trouble down the line. It will also make you a millionaire by merely saving and investing money early.
Compound interest; look this term up. It will change your life if you let it.
I can’t stress this enough, but you got to invest now and young!!! If you don’t understand investing, take the time to educate yourself.
Tip 2
Create a 1-year emergency fund that can cover your monthly expenses for 12 months; adjust the amount of your emergency fund as your expenses change. Establishing an emergency fund creates the opportunity for you to be financially independent and never strapped to a job.
Tip 3
Budget consistently. Always know where your money is going and where your money is not going. Have a 100% transparent relationship with your money so you never run into surprises (e.g., a negative bank account, fraudulent activity, or wasting money).
Tip 4
Skip the credit cards until you’re ready to handle them responsibly.
Tip 5
Set up automatic payments for all of your bills. Always pay your bills on time, and never miss payments because you forgot. Set yourself up for success by automating everything you can.
Tip 6
Live with your family or roommates – as long as your mental health can stand – to save money and live a cheap lifestyle. People waste thousands of dollars every year when they could easily be living with someone else. You can’t beat free rent or a 50% discount on rent.
Tip 7
Choose your state residence wisely. If you can’t afford to live in the “Manhattans” or “San Francisco’s,” then don’t. Wait until you can live there without it costing your entire income. Sure the experience is pleasant, but that’s what vacations are for.
Tip 8
Avoid car payments. If you can, avoid having a car payment. Instead of putting that monthly payment on a highly depreciating asset like a car, you can invest that money into your ROTH IRA, stocks, or mutual funds.
Tip 9
Avoid overpriced housing. Living in an upscale house is fantastic, but work your way up. You don’t need to start at the top (if you can’t afford it).
Start from a comfortable and respectable spot for your finances, and gradually make your way up to something better as your income increases.
Your housing should cost less than 25% of your net income. Many people recommend that your housing costs not exceed 25% or 30% of your gross income, but I always recommend living off the money you actually bring home (net income).
Tip 10
Be a person who always has money. Just because you’re young doesn’t mean you have to be broke. Be a saver, not a spender.
Tip 11
Create multiple sources of income. I always say having one income source is like betting your entire life savings on a sick horse. Create a business (more on this later). Always have income sources that you control. Don’t place yourself in a position where all of your income is dependent on someone else.
Tip 12
Read books on personal finance; this is one of the best ways to learn about money. Educate yourself constantly about money. Never stop learning about how money works and how money can work for you.
Tip 13
INVEST NOW. I have to repeat this because so many young people don’t take this seriously. I started investing at the age of 14, and if I could do it over, I would have opened my retirement, broker, or mutual fund account the day I was conceived.
There is one thing you can never get back: time. Use it wisely, and let compound interest work in your favor. The more time you have on your side, the more powerful compound interest will work to your advantage. Furthermore, the younger you start investing, the less money you will need to invest over time.
Tip 14
Don’t do what your friends are doing. Most people are broke, which is why most people will always be broke. We are the average of the people we surround ourselves with; there are few people who know how to elevate themselves in an environment that doesn’t agree with their goals. It’s possible, but it’s also harder because we tend to mold into our environments.
Tip 15
Stay up to date with all the new trends. Many people are still not invested in digital currency and will never be because they do not educate themselves on new trends, expose themselves to new people, or get out of their comfort zone of investing. Stay out of your comfort zone. Many people that invested in Amazon decades ago were unsure about it, but they stepped outside of their comfort zone.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.