By Daniel Korleski, MBA
They say that age makes you wiser, but there’s no reason why you can’t learn some crucial lessons earlier in life! Because I’ve worked with so many individuals on their financial planning, I thought it would be valuable to share things I wish I had known when I was younger.
From saving to retirement to giving back, here are some invaluable lessons that the young (and young at heart) should remember.
It’s Not About How Much You Make, It’s About How Much You Save
This is a tough lesson to learn, especially when you’re starting out in your career and trying to earn more in every role. Unfortunately, too many people are more focused on their income than their expenses. You can be making $300,000 a year, but if you spend more than you bring in, you will still live paycheck to paycheck.
Instead of focusing on how much you’re making, focus on decreasing your expenses so you can save for your future. This is how the rich get richer. They understand that in order to build your net worth, you need to sacrifice some of the day-to-day luxuries to save and invest more.
Pay Yourself First
Speaking of saving and investing, another great lesson I wish I’d known sooner is to always pay yourself first. We have so many expenses that pile up, from mortgages to car payments to student loans to groceries. If you only have enough to pay your expenses, you might never be able to save and get ahead.
Instead, set aside a portion of every paycheck to “pay yourself first” and put that money away in a savings account or investment account. Then subtract your expenses from what’s left. This is a great way to prioritize your financial future before getting bogged down in the countless day-to-day expenses. Even if you can’t afford to pay yourself much, every little bit counts, and this practice will teach you how to cut your daily expenses to afford a better tomorrow.
The Sooner You Start Planning for Retirement, the Better
When you’re young, retirement seems like it’s centuries away—but it’ll come quicker than you think. Start planning for this major financial milestone as soon as possible, even if you’re only able to contribute a small portion to your 401(k) or IRA. The sooner you start planning for retirement, the more you’ll have, the sooner you’ll be able to retire, and the easier it will be. According to the Federal Reserve, only 36% of Americans think their retirement savings are on track. (1) Make sure you do the work today to secure your financial future.
Donate to Charity
When your financial obligations pile up as you get older, donating to charity might be at the bottom of the list. But from what I have seen, the more you give, the more you receive. Making a difference in the world is just as important as securing that next house, next car, or next vacation (if not more so!). Find a charity close to your heart and contact them about donation options. Even a little bit counts!
Don’t Worry About Timing the Market
As a young investor, you may want to try to time the market to maximize returns, and while this is one strategy, I have seen that more successful investors are focused on long-term, stable growth. No one has a crystal ball to predict the future of the market, so it’s better to focus on creating a portfolio that’s aligned with your goals and time horizons.
What Other Lessons Do You Need?
I've learned a lot about financial security and planning throughout my over 30 years of experience in the financial services industry. If you’d like to discuss more lessons I wish I’d known when I was younger or find out more about how I can serve you, reach out to me at danielkorleski@cobaltprivatewealth.com or 719-332-3863 to schedule a meeting.
About Dan
Daniel Korleski is the President & CEO for Cobalt Private Wealth, where he helps his clients grow, manage, and protect their wealth so they can work toward a stronger financial future. With over 30 years of experience in the financial services industry, Dan has served as the managing director for Investment Trust Company, chief investment officer for the Wealth Management Group at American National Bank in Denver, and regional investment manager for the Greater Colorado Region of the Private Bank at Wells Fargo, where he oversaw the management of over $2 billion. In 2008, he was appointed by the mayor of Colorado Springs to the City’s Investment Advisory Committee. Dan holds an MBA in investment management from Midwestern State University in Wichita Falls, Texas, a Bachelor of Science in Finance from Florida State University, and is a member of both the CFA Society Colorado and The Financial Planning Association.
Dan loves to give of his time to his community and has served as Chair of the Board of Trustees of Pikes Peak Hospice Foundation, the Board of Directors of Catholic Charities of Central Colorado, President of the Broadmoor Rotary Club and Vice President of the Board for the Pikes Peak Chapter of Trout Unlimited. Dan was born and raised in Spain and is fluent in Spanish. When he’s not working, you can find him traveling around the world with his wife of 23 years, Montse, fly fishing, golfing, and hiking with his golden retriever, Curro. To learn more about Dan, connect with him on LinkedIn.
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