Youth Has No Age: Financing a Longer Life
In honor of Youth Month, we reflect on a new mantra: we are all living longer than the generations before us. The question is, are we financially fit for the journey?
“The younger you are, the longer you live.” — Gratton & Scott.
Preparing for the future means transferring money from today to your future self. Most people find it challenging to create a close connection between who they are now and who they will be at 80.
The 5 Questions for Your Future Self
Steps to Financial Well-being
Step 1: Effective Expense Tracking
If you don’t know what you spend monthly, you cannot plan for a future that might span decades. Knowledge of your “burn rate” is the foundation of all planning.
Step 2: Needs vs. Wants
Distinguish between necessity and desire. Understanding your motivation for buying things is the key to mastering self-control and improving your cash flow.
Step 3: Secure Your Retirement Plan
Pay yourself first. Familiarize yourself with your company’s retirement offerings and make intentional investment choices. Think of it as a mandatory transfer of wealth to your older self.
Step 4: Build Your Safety Net
An emergency fund (3 to 6 months of expenses) prevents a temporary setback—like a medical emergency or unemployment—from turning into long-term debt. Keep this in a separate, accessible money market account.
Building Strength for the Long Term
Just like physical fitness, money habits can be changed. Ask yourself today: “Will my 70- or 80-year-old self approve of the decisions I am making right now?”
By: Sydney Sekese, CFP®
