So, you did well in school, got yourself a killer job, and even have a partner who loves you for who you are. Congratulations! Now, you’re ready to level-up even more. The next step: coming up with a stellar financial plan to skyrocket you into success.
Here are three tips to get you started up the money-making mountain.
#1 Plan for Retirement
Woah woah woah, no one said you had wrinkles! When we tell you to plan for retirement, we’re not implying you’re old (although, if George Clooney is any example, grey hair and crow’s feet are not a bad look). In fact, planning for retirement should happen as soon as possible.
The earlier, the better.
More importantly, however, you have to strategize around your retirement to optimize all those years of saving. The best and easiest way: picking the right retirement fund. Here are some of the most common options:
- 401(k) plans are generally offered by companies to their employees, with benefits like:
- Employer contribution matching
- Automated savings (money is taken directly from your paycheck)
- Higher limits than individual retirement plans
- An IRA, or an individual retirement arrangement, is an account that you fund by yourself, which is especially useful if you are self-employed. These are great because:
- You may be able to make deductible contributions, thus lowering your income tax bill.
- Your money grows tax-deferred (as in, you only pay taxes when you withdraw from the fund).
- There are no income limits, which benefits higher earners.
- A Roth IRA is similar to a traditional IRA, save one main difference: your contributions are taxed before entering the account, meaning your balance grows tax-free and, more importantly, you don’t have to pay taxes once you withdraw money for retirement.
#2 Trust a Professional
If the thought of retirement planning sent a shiver down your spine, then grab a weighted blanket and keep reading. You don’t need to worry so much!
There’s a reason why some people go to college to learn about wealth management: they actually like this stuff. Conduct a quick financial advisor lookup to find experts whose services fall within your budget and align with your goals (like starting a family, buying a house, or expanding your business).
Remember, you don’t have to go at it alone.
#3 Open Multiple Streams of Income
While internet entrepreneurs have many faults, they do get something right: the key to financial success is having multiple streams of income and, better yet, multiple streams of passive income.
That means exploring different avenues of business and taking advantage of your many talents to make money while you sleep.
Here are just some ways to do that:
- Create helpful master classes on a topic or skill that you’re an expert in and charge per class or for a package of classes. Design a stellar website around it to boost your credibility.
- Use your coding skills to release a mobile game onto the Apple or Android app store—employ a freemium model or in-app purchases to start making bank.
- Take advantage of your fashion talents, your thrifting addiction, and your smartphone by flipping and reselling vintage clothes on apps like Depop.
Plan for the Future
Financial success is just as much about tomorrow as it is today.
That means looking far beyond how much money you currently have in your pocket and projecting yourself into the future.
Just because you can technically afford that designer jacket right now, doesn’t mean that it’s actually a sound financial decision.
That’s why you should always think of the long game when it comes to your finances. Believe me: when you think of the then over the now, your financial future gets a whole lot brighter.
