As as a licensed financial advisor, if I could underscore two financial habits that could transform your journey to wealth, they'd be "paying yourself first" and "starting to invest early."
"Paying yourself first" is a simple yet powerful concept. Instead of saving what's left after expenses, this habit encourages you to set aside a portion of your income for savings as soon as you get paid. This could go towards retirement, an emergency fund, or even a dream purchase like a house or car. The key here is consistency - start small, but keep at it.
Complementing this strategy, beginning to invest early can be a game-changer due to the magic of compound interest, which helps your investment grow exponentially over time. Even if you set aside small amounts, starting early gives your money more time to grow substantially. For instance, saving $1000 per year starting at 25 with a 6% interest rate can grow to over $142,000 by age 60!
While navigating investments requires understanding potential risks, it's critical to keep in mind that wealth-building is a marathon, not a sprint. So start today, and remember, good financial habits are within you to cultivate at any age - it's never too late! It's always wise to seek professional advice to ensure your decisions align with your financial goals and risk tolerance.