Kate, a young entrepreneur that I’m mentoring, recently sent me this e-mail:
I’m turning 25 in two days, and I’ve asked a bunch of people from my life what they wish they had known at 25. I’d love to hear your thoughts on what you’d tell your 25 year old self!
This is what I said:
Here’s the most practical advice I can share with you: Save 50% of your income.
Here’s TL;DR: the more you save (and subsequently invest), the faster you’ll get to financial independence. And the quicker you get to financial independence, the faster you earn the freedom to do anything you want.
Think about it: if you had all the money you needed to cover your expenses indefinitely, you (1) no longer have to work for money, and (2) can take massive risks and never have to fear failure.
I didn’t truly appreciate the idea of financial independence until I was about 30. Missing those five years of aggressive savings between 25 (where you are now) and 30 has turned out to be quite costly.
This is the best advice I could possibly give to any young adult. Good luck.
What would you tell your 25-year-old self?