The Most Common Things People Wish They Knew About Money Sooner

When you’re new to money management, it can be really difficult to know where to start. Here are some of the most common things people wish they knew about money, sooner. 

Compound interest

Compound interest can transform even small investments into real wealth with time. For some, it can be hard to let your money sit. But to enjoy the benefits of your interest compounding, it requires delayed gratification. 

I’d recommend starting NOW. Even if all you can spare is $10 to begin with, throw it into a high yield savings account and watch it grow. What you invest your money into doesn’t have to be fancy, it’s just that you invest it at all.

Accessing loans

Understanding loans and the different types of loans available would have caused fewer headaches earlier in my business. There are so many different kinds of loans and it can be really difficult to know what might be the best option for you when you’re starting out with money management or as an entrepreneur. 

When you have the time, schedule 30 minutes with your bank to learn about loan terms, interest rates, and repayment schedules. Taking this time to organize all of this paperwork only once can reduce your stress and give you the confidence you need to make decisions in your personal and business finances.  

Credit cards

Credit cards can become a slippery slope if not managed correctly. But to be honest, they are not as complicated as you might think! Simply paying off your balance monthly (and not spending more than you have) will leave you at no risk of getting into credit card debt. 

Setting up automatic payments to ensure everything is paid off can help you build your credit score and reduce any future financial headaches. 

Invest automatically

Consider setting up automated contributions to your investment accounts, such as a retirement fund or a brokerage account. That way you know a portion of your income is consistently working for you, helping you build wealth over time. 

Automate Debt Payments

If you have any debt, set up automatic payments so that you're consistently making progress towards paying them off. If you can pay off debts in full you should!

Retirement Account

Learning about retirement accounts and what each type can offer you is something I always recommend entrepreneurs look into as soon as they start their entrepreneurship journey. Especially if you’re moving from a job that sets up those accounts for you, it can be daunting to try to figure out what to do next. 

There are lots of retirement options, and each offers a variety of different benefits. Thinking through your goals and what makes more sense for you currently is one of the best ways you can decide which type of account will best serve you. 

In hindsight, having a confident understanding of each of these accounts is something I wish I would have done from the start of my entrepreneurship journey. Learn from my missteps! These lessons can help you unlock a more secure future that you feel confident in. 

If you’re looking for more ways to feel confident in your path to financial stability, I can help!