By Chris Heisten, CRPC®, CFP®, CSRIC®
If you ever think about your money decisions and wish you had done things differently, you’re not alone. Surprisingly, over two-thirds of Americans share at least one financial regret in their lifetime. But the good news is, there are always things you can do today to get your financial journey back on track.
Looking back at my early 20s, I can’t help but reflect on the many ways I could have improved my financial situation. They say hindsight is 20/20, and when you’re young, retirement saving and budgeting might not be top priorities. However, dwelling on the past won’t help. Instead, I want to share with you the three best money habits I’ve learned so that you can build a strong foundation for your future.
Spend Less, Save More
When you are young, it is easy to get caught up with buying the next best thing. And if you are not careful, this carefree behavior can evolve into spending habits that are based upon “keeping up with the Joneses” instead of careful financial planning.
Some people in their 30s come to me strapped with credit card debt they regrettably took on in their 20s. Obviously, it is frustrating to them that they are still paying off the debt they incurred when they were younger instead of investing in their future. It’s always good to implement good spending habits early in life, meaning spending your salary only on things that you can afford and not relying too heavily on credit cards.
Understand and Use Your Company’s Benefits
It is up to you to fully understand and take advantage of your company’s benefits, like your 401(k). If your company offers a good matching program, remember to contribute enough to receive the full benefits of the matching program.
When you’re young, it’s difficult to imagine your retirement. Maybe you have a growing family or are trying to make ends meet as you grow professionally. But when you miss out on your company’s match program, you are missing out on free money that will have a lifetime to grow and could have a positive impact on your retirement.
Create a Financial Plan and Adjust it Accordingly
Many people mistakenly see the creation of a financial plan as extraordinarily complex and complicated, but it doesn’t need to be. In fact, your financial plan when you are younger can be as simple as creating a budget, sticking to it, and investing in your retirement.
Many people also mistakenly see a financial plan as set in stone. However, once you establish a financial plan, you can and should review it frequently and adjust it to match your new financial situation or challenges. Financial plans and wealth management strategies should evolve with you and your family over time. Perhaps you are making a better salary and want to invest more toward your retirement, or maybe you want to invest in real estate. Your financial plan needs to be fluid in order to account for life changes.
It’s Never Too Late to Start
Establishing healthy financial habits early on is always ideal, but remember, no matter your past mistakes, it’s never too late to take control of your finances and wealth management.
At Heisten Financial, we’re dedicated to assisting you in pursuing your goals both during your working years and in retirement. Partner with us to create a customized financial strategy by emailing jami@heistenfinancial.com or calling 907.222.6270 and let’s get started toward your successful financial future.
About Chris
Chris Heisten is President and Founder of Heisten Financial LLC, a fee-based boutique financial planning firm with the focus of giving clients back their time so they can spend it doing what’s most important to them. Acting as a true fiduciary for his clients, Chris aims to solve their financial pain points and move them toward financial freedom. In the financial industry since 2007, Chris partners with business owners and oil workers on their journey through life, striving to instill calmness and a sense of direction as he simplifies the complex. He loves nothing more than seeing clients experience relief when they achieve what they thought was impossible.
Chris graduated from the University of Maine, where he played hockey on a scholarship, and retired from professional hockey in 2007. In the community, he remains engaged serving as a youth hockey coach. Chris holds the CERTIFIED FINANCIAL PLANNER™, Chartered Retirement Planning Counselor℠, and Chartered SRI Counselor™ designations. Outside of the office, he enjoys trying new food and wine, reading, traveling, playing golf and hockey, fat tire biking, and donating to local charities. His passions include being a husband and dad, lake life with the family, watching his son and daughter play sports, and spending time with his wife. To learn more about Chris, connect with him on LinkedIn.