Financial stability is daunting to think about if you are a millennial. Let’s face it, we will have to encounter this term in our life sooner or later. One of the best ways to start reaching that kind of sustainability is by plotting your financial road map.
You may be dumbfounded with the word ‘financial road map’, and I don’t blame you. This road map means identifying where you are at financially and where you are heading. It also includes the things you plan to accomplish and the steps you need to prepare to reach that goal.
So why is it important to create one for yourself today?
Here are 3 reasons why you should start making your own financial road map right now:
1.Keep Tabs of Your Priorities
Today’s tech and innovations are rapidly changing the way we live our lives. You can virtually do anything using your smartphone. One thing that this modernization brings to us is distraction. We can work and shop online as well as order food on the go. E-commerce platforms are a hit, we can do basically everything with just one click.
Creating a plan and a to-do list, helps you to plan your expenses wisely and align your priorities so you can avoid buying useless stuff or being distracted by social media.
2.Think of Early Retirement
Retirement may sound absurd when you just started working. Imagine, you just celebrated half a decade of being an adult, well mostly working. Retiring might be a vague concept for now, but you don’t want to work forever.
You may still enjoy your work for now, and that is wonderful. But planning for an early retirement is even better. Imagine laying on the beach while reading a book or touring the Amalfi coast in Italy in your 40’s.
Early is indefinite and it varies from each person’s understanding. To some, 50 is considered early, but to other 40 is the sweet spot. The latter may seem impossible, but attainable if you put your mind into it. Creating a financial road map helps you plan for that elusive early retirement. Follow your plan religiously and stick with it.
William Langland’s famous “patience is a virtue” continues to ring true even today. Practicing patience, especially in this day’s market is hard. The volatility and unprecedented movements require more patience than ever.
Furthermore, being patient also means being disciplined. Controlling your emotions and having a sense of responsibility is a great skill to have in the market. A financial road map helps you improve these habits. Knowing where you are headed to is a great way to practice patience. You have to believe and stick with the process. Make sure that you are patient and consistent in saving, investing, and in upgrading your financial portfolio.
People are distracted in the “now”. We want things fast, easy and convenient. People rarely save, they spend their money on the latest fashion trend, or plan a trip to overseas. I came from a generation where needed to work if I wanted to buy something. My first out of town trip with friends came when I was in 2nd year college. I was saving all the money I could since the 3rd grade and asked my father to put it in a mutual fund and by the time I graduated college my savings grew and that gave me a head start in life.
I want to encourage everyone to save, or invest a part of their salary so in the future you will have some sort of financial security blanket. Look, this will require a lot of patience and dedication, but it will be worth it. Save now. A journey starts with a single step, when are you taking yours?