When you are a kid, you can’t wait to grow up. When you are grown, you wish you could go back to being a kid. Each phase has its perks and challenges, but we usually tend to focus only on the challenges. We just want to enjoy the good parts and never have to deal with the not-so-great part. Unfortunately, it’s not up to us!
On this financial journey, I’m learning to set goals for each decade and try to pace myself.
- My twenties were a decade of learning and discovering
- My thirties are a decade of hustle and growth
- My forties will be a decade of wealth building
- My fifties will be a decade of giving back
I’m thankful for my twenties but also glad that I’m not there anymore. That is the beauty of growth; you learn, improve, fall, get back up, and each experience helps us become who we were created to be. My daily prayer is to be able to learn something both in good and bad times.
A Decade of Learning and Discovery
Adulthood starts in your twenties. It is also time you graduate from college, move out of your parents’ house, and start living independently. You get your first full-time job, find an apartment downtown, and start paying bills. There is a lot of liberty that comes with being independent but also a lot of responsibility. You are doing things for the first time, and sometimes you mess up (it’s okay). On the personal finance front, this is the time you realize that you don’t make enough money to buy everything you want! I don’t know about you, but I was pretty disappointed when I realized that working doesn’t mean you have all the money you want. I’m not even mentioning that Uncle Sam took about 40% of my earnings for unknown reasons.
Well, I survived the shock and started planning better.
I become aware of how the system work (from credit card to work benefits, to retirement account). I didn’t do everything correctly, but I was growing in my knowledge of personal finance.
A Decade of Hustle and Growth
This is where I am. It is time to clean up any messes from the previous decade, start being intentional about my goals, and working as much as I can to reach them. I have paid off all my student loans (undergrad & grad school). I don’t have any other debt except a mortgage (which I’m working on paying before term). I’m not here to brag but encourage you that you too can do that and more. All you need is discipline and hard work.
I also continue to learn about money management, including investing. I’m not where I want to be but not where I used to be. I’m in hustle mode: I work as much as I can (nights/weekends included) to make sure I can (1) invest more and (2) pay off my mortgage faster. I hate to spoil your fantasy, but you will need to get a second source of income to either stay out of debt or save/invest (unless you are making a ton of money).
A Decade of Wealth and Legacy Building
This is when I hope to build wealth more with hopefully fewer expenses and continuous intentionality. Once you finish paying the debt, it’s time to invest more. I look at investing as a tool not only to build wealth but also a legacy. I want to have something to leave to my family/kid(s) other than bills, grief, and benefits. To be honest, this phase of wealth-building continues through your retirement years. I’m not there yet, so let me not get too excited! Again, lets not focus on the age. Just because you’re twenty doesn’t mean you don’t know much about money management. This is based on the following steps: learn, grow and build. Once you’ve reached a comfortable place, then you enjoy and give back. It doesn’t mean you don’t get to enjoy anything in the meantime; you do it in moderation.
I wouldn’t conclude this without stating that you might not need a whole decade to learn. Take the time needed and go through the steps. As you move forward, retain the lesson learned and try not to repeat them. We are always growing and evolving, the last thing you need is to live in the same cycles. We are trying to move on, move up and move forward!
Be encouraged! You have what it takes within you. Give you some grace when you fall. You will not get everything right, but you won’t get everything wrong either. Perfection sometimes hinders our ability to appreciate the progress we have made.
“You will either step forward into growth or you will step back into safety”. Abraham Maslow
