Financial Lessons I Wish I Had Learned When I Was Younger

Financial Lessons I Wish I Had Learned When I Was Younger

July 01, 2021

For young adults, making the right financial decision in their 20s is often the most challenging. Oftentimes salaries are low and student debt payments are high, so being fiscally responsible when you are just starting out may mean missing out on fun vacations with friends or shopping trips to some of your favorite stores. 

However, living within your means and implementing good financial habits now is critical to ensure financial security down the line. Below is a quick guide to managing money when you are younger. We hope this helps Millennials and younger folks on their path to becoming fiscally responsible and financially secure later in life. 

Don’t Use Credit Cards

As appealing as travel rewards and cashback programs may seem, credit cards almost always benefit the credit card company and not the customer spending the money. With credit cards, it is easy to lose track of how much you are spending and not be able to pay back the amount due at the end of the month. This means paying the credit card company interest on the amount you initially borrowed. 

While it is tempting to use credit cards, keep in mind that you don’t want to leverage your financial freedom tomorrow for instant gratification today. Unfortunately, credit cards don’t encourage fiscal responsibility and can be dangerous, especially if you tend to overspend. 

Always Have a Cash Reserve

Creating and maintaining a cash reserve allows an individual to meet short-term or emergency funding needs, and it also can allow you to make large purchases quickly if necessary. For younger adults, cash reserves can be handy if your financial situation changes due to a job switch or a loss of other income. 

Unfortunately, in today’s economy, young adults are forced to change jobs often, and cash reserves can be vital in keeping an individual afloat while they reassess their situation. It allows them to find a new job or situation without taking on a mountain of debt that will be difficult to pay off.  

Create Systematic Savings Every Month

Creating a cash reserve is impossible without establishing healthy financial habits that enable you to put aside a generous amount of cash. One of the easiest ways to make sure you are contributing responsibly to your cash reserve, savings, and investments is to create automated savings deductions from your checking account to your savings or investment account. This ensures that you can sufficiently fund those accounts in case you need to rely on those funds in the future. 

Create a List of Financial Goals 

When it comes to your financial well-being, there are probably many financial goals that require a significant amount of time and savings to achieve. It can be overwhelming just thinking about where you want to be financially in 10, 20, or even 30 years. 

The good thing is that identifying your financial goals is half the battle. Next, you’ll want to write down a list of your personal financial goals. Finally, establish a time frame for each goal to help solidify each target in your mind. This should serve as an outline for your future and help you feel a little less overwhelmed when you think about establishing a financially secure future

Looking Forward to a Stable Financial Future? We Can Help.

At HBA Wealth, we have 15 years of experience helping individuals and families establish a wealth management plan that helps them work toward a more stable financial future. We know that the next generation may have questions about the best financial moves they can make now to establish a secure future later on. We’re here to help. Contact us at (626) 529-8347 or email Ricky directly at

About Haydel, Biel & Associates

Haydel, Biel & Associates is an independent financial advisory firm serving individuals and families near Pasadena, California. The firm was founded in 2004 by Chris Haydel and Ricky Biel with a desire to provide unbiased, client-centered, community-based financial advice. Together, they have built a practice that has grown into a family of caring, smart professionals committed to blending proven investment methodologies with creative financial technologies that make it easier than ever to accomplish your goals. They strive to keep things simple and fun to give their clients peace of mind and alleviate financial stress. HBA Wealth takes care of their clients’ needs first and foremost and goes the extra mile to make their clients’ finances grow. To meet and see how the HBA Wealth team may be able to help, contact them today at (626) 529-8347 or email Ricky directly at

The commentary on this blog/website reflects the personal opinions, viewpoints and analyses of the Haydel Biel & Associates employees providing such comments, and should not be regarded as a description of advisory services provided by  Haydel Biel & Associates or performance returns of any Haydel Biel & Associates Investments client. The views reflected in the commentary are subject to change at any time without notice. Nothing on this website constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Haydel Biel & Associates manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.