Building Wealth In Your 20’s and 30’s

Need more guidance and savvy money saving advice for retirement when you’re in your 20’s and 30’s? Continue reading to find out what you should be doing at this exact moment in your life to so you can retire with peace of mind.


4) Imagine Yourself when You are Older

A study published in the Journal of Marketing Research reported that when young people view photographs of themselves as older people, they are more willing to save money for their future. Can’t digitally age a photo of yourself? Use your imagination or study a picture of your mother or grandmother.

5) Change Your Outlook

It’s easy to get caught up in self-pity or loathing when it seems as though everyone is acquiring more than you are. One way to nip this detrimental behavior in the bud is to give to a charity. No matter how much you can spare, even a little bit makes a world of difference and changes your worldview for the better. In fact, according to experts, it’s also a great way to gain control of your own sense of perceived depredation.

Get rid of friends who make fun of you or put you down for things you can’t afford as of yet. You need to surround yourself with positive friends who are supportive, not negative people who bring you down or don’t appreciate your frugality.

6) Buy Just Enough House

Just because you can afford a $450,000 dollar home doesn’t mean you should buy one. Instead, buy a house that is comfortable for you. It doesn’t make sense to buy a large home when only two people live in it. Besides, you’ll end up paying a lot more on home repairs, and on cooling or heating bills during the summer and the winter.

This doesn’t mean you shouldn’t buy a home that you love, what it means is to buy one that allows you to live comfortably, so you can afford other things as well. The worst thing you can do is buy a home that is above your means, and not be able to make the house payment. Besides, think of the benefits 30 years down the road. Would you rather have another 1 million in your bank account or another spare room that no one uses?

7) Invest More or Save More

You have two options here, risk more on investments or save a lot more money. If you’re a risk taker than the investment option might seem more appealing to your personality. What does this mean? This means that you have to balance market risk with inflation risk. According to recent research conducted by Investment Company Institute, close to 20 percent of investors under the age of 35 are unwilling to take any type of risk when it comes to stocks.

So what should you do? Maria Bruno a Senior Investor Analyst at Vanguard, suggests putting 30 percent of your long-term savings in stocks. Of course, if this sounds too risky, you can also choose to save a lot more money, such as 30 percent of your income, instead of investing your money in stocks.