When it comes to wealth-creation, if you’re in your 20s or 30s, you have a massive ‘unfair’ advantage over older people – just because of your age!
The question is, will you leverage this position – or squander it?
Don’t worry if you’re unsure how to make the most of your age advantage [a lot of people aren’t]; that’s what this article is for.
So keep reading!
In turn, you’ll discover why age gives you this advantage – along with valuable pointers to help you take full advantage of your enviable position. That way, you won’t be one of those people who look back a decade or two from now and kick yourself at the chance you wasted!
The reality is a lot of people will waste their chance. They don’t do it intentionally. Instead, it’s because they don’t understand how money grows.
Money doesn’t grow in a linear way like a human lifespan
Thanks to the impact of compounding interest, money grows like a hockey stick – it’s an exponential growth curve.
We love instant gratification, and crave results fast. So, in the initial stages of an exponential growth curve [when growth feels slow and small], we’re not impressed! Instead, we’re impatient.
There may even be a part of you that wonders “why bother?”
After all, you have plenty of other stuff you could spend your money on.
Plus, you’re young, which means you have time to do this later, right?
But here’s the thing…
If you were to wait a little longer, you’d hit the point on the growth curve where your wealth starts compounding. Then BAM! Suddenly, the growth curve gets very exciting. Suddenly your wealth begins to look extremely interesting.
The only difference between the boredom in the beginning and the excitement you feel now is TIME.
Which is why the sooner you start to build wealth, the more you can exploit the upwards curve.
[And the wealthier you become – over time.]
So how do you do this?
Here are THREE ways to try.
1. Don’t look for the silver bullet
It’s very easy to create and compound your wealth for exponential growth. All you have to do is spend less than you earn and invest the rest [wisely].
The bigger challenge is cultivating the patience to trust that the exponential growth will come.
In the absence of patience, it’s tempting to seek out get rich quick schemes and other riskier strategies that promise a way to short cut results. The danger is, the gamble may not pay off in the way we hope.
So stop looking for the secrets and hacks.
There isn’t a magic solution to getting rich. Instead, it’s all about consistently investing and staying committed over time.
Something the Financially Happy framework will teach you to do.
2. Stop procrastinating
I often speak with people in their 40s and older who kick themselves for not doing differently in their 20s and 30s.
You have a chance to avoid their mistake [and build more wealth than you would by starting later].
So why not start today?
The flip side of your age advantage is procrastination. You feel justified in this decision too; telling yourself that because you’re young, this is something you can get to later – when you have more time or money.
But there’s a problem with this approach.
Not only does a delay cost you compounding interest, but you’ll reinforce any wealth-sabotaging habits and behaviours you have right now.
In other words, procrastination doesn’t just keep you stagnant and stuck where you are – it can also push you backwards.
And I know that’s not the experience you want for your life.
Time to ask yourself a different question.
What would it take for you to work on your finances now?
I encourage you to spend some time journaling around this question. It will give you a lot of clarity about what to do next.
3. Manage your cash flow
You can improve your financial situation right now by reviewing what you spend. Become a detective of your financial habits, and you’ll see that you can make cuts without compromising your lifestyle. In turn, you’ll free up money to save or invest.
You’ll also see that despite what people say; budgets aren’t restrictive. Instead, they create positive constraints that eliminate financial guilt and enhance your wealth.
Yup! Budgeting is a tool that will help you feel happy and wealthy.
To help you review your spending, check out these 101 ways to cut your expenses without compromising your lifestyle.
When it comes to wealth-creation, your age advantage is something you’ll never get back, and you’ll never have again.
So don’t waste it!
Remember, if you start today, you’ll need to input less than someone beginning the same journey 5, 10, even 20 years later than you to create the same outcome.
Can you think of a bigger incentive than that to start enhancing your wealth today?