If you could write a letter to your younger self, what financial advice would you give?
Hindsight is 20/20. And that’s especially true when it comes to personal finance. We asked readers to weigh in on the financial advice they wish they’d known 10 years ago. Keep reading to see their letters to their younger selves. Answers have been edited for space and clarity.
Dear 17-year-old …
Save more money, spend less on eating out and shopping, and apply for every scholarship possible. I didn’t realize how difficult it would be to pay off my student loans on a journalist’s salary and I wish I had been more prepared.
Signed, Zina Kumok, age 27
Dear 21-year-old …
When you get your first job, put money aside for an emergency fund instead of putting it all into loan payments. At my first job out of college, I was making a lot of money in commissioned sales. I thought I was doing the smart thing by putting the extra cash into paying off student debt. But when I lost that job, I found myself putting food and gas on my credit card — debt I’m still managing today.
Signed,Jason Bauman, age 31
Dear 22-year-old …
I wish I’d learned to separate needs from wants 10 years ago. In my early 20s, I thought that going out three days a week was a need. Buying another pair of shoes was a need. Getting a three-bedroom townhouse was a need. Personally, I should have know that the amount of money I was spending on nights out could be put to better use — or staying in for dinner would have saved me money.
Signed,Zach Dillman, age 32
Dear 23-year-old …
When you open multiple credit cards and live like a king, you need to have an income to back up the lifestyle.
Signed, Brian Scios, age 33
Dear 24-year-old …
For the first two years of my working career, I didn’t max out my 401(k). In fact, I don’t even think I contributed anything in my first 12 months of working. If I had to do it over again, I would have put as much as I could into my 401(k) when I started working. That would have allowed me to get the full company match — in other words, free money.
Signed, Roger Ma, age 34
Dear 25-year-old …
Having cash, whether in a savings or checking account, [can] provide the financial freedom to make better career choices. Too many times in the past 10 years I’ve made decisions because of money, not because of what was right for me and my growth.
Signed,Nick Braun, age 35
Dear 27-year-old …
Financing a vehicle is not conducive to building wealth. No one cares what you drive and having a car payment can restrict you [from] being able to invest in real estate or starting your own business.
Signed,Gene Caballero, age 37
Dear 37-year-old …
Create a financial plan for [your] dream[s]. I could’ve had a specific financial goal and been saving intentionally, but I didn’t bother to estimate all the costs associated with making [my financial] dream come true.
Signed,Garland Walton, age 47
Dear 42-year-old …
Make sure you budget for fun when you are young. You may never be old.
Signed,Jane Searing, age 52
Dear 48-year-old …
Don’t try to time the market. Eight years ago, in 2008, when financial markets seemed to be imploding, there was a strong temptation to get out of equities. In fact, it was a great buying opportunity for long-term investors.
Signed, Eric Dunn, age 58
Dear 57-year-old …
Be more conscious of spending. I’m a shopaholic — clothes, shoes, purses — all that stuff. I would have cut back and saved more because I look at it now, and I say, “I really didn’t need all that stuff.”
Signed,Darlene Henderson, age 67
Dear 58-year-old …
Be sure that when you’re employed, you take advantage of your company savings plan … And to be sure to talk to a financial planner (either at your bank or if your employer offers that particular type of service). Take advantage of that counseling to set aside enough for your future.
Signed, Teri Bridgett, age 68
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