No, I am not a financial expert. I’m just a girl who always had the idea that she could retire early, but learnt the lessons I needed to make that a reality, a little too late. All is not lost though, so this is not a pity post. But rather, it is a call to the young persons and my retirement advice for them.
I shared this post over 10 years ago. The writer retired at 27. That’s too early in my opinion, but he explained that it didn’t mean that he would go off to play golf and never work again. What he meant was that work would be optional. I did have a wonderful period in my life when I worked very little, and had peace of mind. From 2003 to 2005, I picked and chose my projects, barely working more than about 8 months in that period, as if I had a Trust fund set up for me! Anyway, it was the most glorious period of my life as it included lots of travel and many cricket matches in the Caribbean and the United Kingdom.
Enough about my mini-retirement. I will share now, the retirement advice that I give any young person who will listen.
1. Start investing and saving early!
No amount is too small to start investing and saving for retirement. Young persons will often say that they do not earn enough to save anything. However, I disagree. If you have even $10 to put aside, it will add up through the power of compound interest. Time is your friend. Any 20 or 30 something person I meet, I tell them to open an account in a Credit Union (in general, banks charges lots of fees and pays almost no interest, unless you have a large amount of money). This is a reminder that it is not about how much you earn, but how much you save and invest.
2. Keep learning and be the best at what you do
The more you know and can do, the better your opportunities for making money in a side hustle. Also, increasing your skills and being a high performer should usually lead to a higher salary you can command whether in your current workplace or another. This brings me to the next point……
3. Don’t stay too long in one workplace, unless you keep being promoted or getting substantial increases
Our parents’ mental model of work was stability through longevity. That no longer obtains, in my opinion. If you really want to set yourself up financially, keep your eyes open for opportunities aligned with your desired career path. Loyalty cannot be used to purchase groceries or pay your children’s school fees.
If you really like your employer, do periodic informal salary surveys and see what the market is offering, then negotiate with your current employer. If they value you, they will match your salary to what you could command elsewhere.
4. Become financially literate and money savvy
Whether you are married or single, it is critical that you understand the basics of money and building wealth. Ask your wealthy friends about the best places to invest, including financial institutions, real estate etc. Watch YouTube videos which break down financial topics into simple language and give useful retirement advice. Learn about investing in the stock market. Find a template that you can use to calculate your Net Worth. The latter really put things into perspective for me.
About 15+ years ago, I used to read Cherryl Hanson Simpson’s Financially Smart Advice articles in the Jamaica Observer and eventually booked a consultation (I mention the meeting in this article, along with why it took me so long to get my finances in order). To this day, I continue to use her Net Work Excel template and every January, I update it to look at my financial situation. I also bought her book, The 3 M’s of Monday. She also told me not to discard the tape recordings from my gazillion interviews with cricketers. In time, they will become assets which will contribute to my retirement income. (In the meantime, you can visit my other website dedicated to cricket, aptly called Cricket Interviews)
In summary….
Take charge of your finances and be diligent in learning all you need to know about money, building wealth and retirement planning. Don’t wait. Start today. That’s my retirement advice for young people.
