What To Do When You Start Making Decent Money For The First Time
If you’re making decent money for the first time in your life...
1. Don't spend your entire paycheck the week you get it. Setup auto deposits into high interest savings accounts and don’t touch that money. Let it earn for you. I recommend Wealthfront's cash account. Highest APR on the market with zero fees.
2. Don't advance your lifestyle just because your paycheck is increasing. If you stay on that path you’ll never accumulate real wealth. You’ll enjoy a few steak dinners, fancy clothes, and a nice car along the way. None of which you'll remember in the end.
3. Start thinking long term. Get life insurance. Open an IRA and 401k. Invest more in your future than you do in your present. Impressing your friends or capturing that misleading Instagram photo will mean nothing in 10-20 years.
4. Live a minimalist lifestyle in exchange for compounding interest. The longer you wait to save, the more potential interest you're throwing away. You won't get rich from your salary, you will through saving and investing.
⚡️Spend only when necessary
Plan for retirement. If you’re smart about it, it can be an early one. Enjoy a little now, or a lot later.
The people who never become wealthy are the people who act like they already are.