So I have been getting back into personal finance, really in depth this time though. I was always semi-interested, but I really am taking a more mature approach to it. I am only 22, which I don’t consider all that young anymore. I am not expecting to be a multi-millionaire anytime soon, but I also want to work on a solid foundation for when I have more responsibilities.
The toughest part I find, is thinking of how much things will cost, or having the foresight to actually conjure my future lifestyle. Regardless, the fundamentals of living below your means are invaluable.
Even if you begin by saving $80 every two weeks. After 5 years, even without interest, you’re looking at over $10,000. Most people I know make plenty to be able to save that, even up to $200 or $300 (which would wind up being $26,000 – $39,000).
Anyhow, the chart below really got me thinking about how impulsive most spending is, even for me. I have always lived slightly below my means, enough to have about 2-4 months of income lined up, but I know I can do better.
I’m also beginning to equate it to taking care of my child (I do not have one yet). I would not go blowing money I know I would need either for their future, or for their current needs. Thinking of it that way really makes it conscious for me. It’s important to care for yourself, especially if you do plan on having kids (especially if you have them already!).
By the way, the chart was found on www.7million7years.com 🙂 It’s an excellent blog.