Advice Financial Experts Would Give Their Younger Selves About Saving Money

If you could go back in time and have a conversation with your younger self about money, what would you say? Are there things you wish you had known? That you would do differently? In a recent podcast, financial experts Jeann Chatzky and David Bach revealed the money saving tips they wish they had known 30 years ago:

Automate Everything

If there’s one money-saving tip both Jean and David swear by, it’s automation.

Whether it’s transferring a portion of every paycheck to savings, paying down your mortgage automatically, or investing through your 401(k), the fewer decisions you have to make, the better.

“You have to pay yourself first, at least one hour a day of your income,” David says. “So the average American needs to save at least 12 and a half percent of their gross income.”

Start Earlier

Both experts admit they didn’t start saving or investing aggressively until their 30s, and they wish they hadn’t waited.

“When I was young, I wanted to get rich quick,” David says. “I was trading stocks, and none of those things worked. They never work. I don’t know anybody who’s gotten rich quick. It was compound interest and consistency that actually worked.”

Jean adds, “When I was in my twenties, I wasn’t very conscious of saving. I didn’t feel like I could, and I didn’t really get started until I was in my thirties, and then I had to do a total reset after my divorce in my forties, so twenties would’ve been a nice decade to grab some growth.”

Don’t Be Afraid To Take (Smart) Risks 

Conservative savers, this one’s for you. Jean admits she left too much money in cash early on and missed out on market growth. 

“I wish that I had been more willing to take more risks earlier and put additional money in stocks…”Jean says. 

One of the smartest money-saving tips isn’t just about saving cash; it’s about making your money work for you through long-term investing.

Build a Real Plamn

David warns too many people are winging it financially. 

“Most people don’t have a real plan. The problem is if you don’t have a real plan, somebody else has a plan for you,” David says. “And they’re the ones that win. They’re the ones that take all your hard-earned dollars from you.”

That plan doesn’t have to be complicated. It just has to include clear goals: what you’re saving for, how much you’re saving each month, and how you’re protecting what you’ve built (think insurance, a will, and emergency funds).

Enjoy Your Money (Before It’s Too Late)

After decades of coaching people to save, both Jean and David agree: the end goal isn’t just financial security, it’s the freedom to live a good, healthy life in retirement.

“Most retirees do not run out of money. What they run out of is healthy life…” David says.

“When you retire, you need to use your health, your time, and your money in the first decade,” he recommends. 

Read the full article here.

Jean and David have more than 60 years of combined experience. Regardless of your current age, you can start following their advice right away. It is never too late to start saving money!