In Your 20s

Introduction

You’re in your 20’s.

Your life is before you.

But how do you prepare yourself for your future that will be better than you can imagine. You will have ups and down but you can prepare for this.

Financials

Your financial literacy will decide on how successful your financial future will be.

At 50 years old you want to be in a position to be financially independent and choose to work or what work to do; you do not want to be in a position to have to work.

Here is the summary

• Save
• Save
• Save
• Invest

Here are some things to read to help you:

• The Wealthy Barber by David Chilton
  • A true classic
  • Takes you through the basic philosophy of financials and forms a good basis of your understanding
• Reddit Personal Finance Canada Money Steps
  • A good overview of general financial planning and steps
• Canadian Couch Potato > Podcast
  • A podcast that will take you through the in’s and out’s of index investing
  • Index investing is recommended by Warren Buffet and Jack Bogle (the creator of index investing)
  • Listen to the podcast and then review the model portfolios
• www.Sewlochan.com > Financial Literacy

Want to skip all that, then do this

• Save
• Build your emergency fund - 6 months of expenses in a cash account - make the cash account your TFSA if you have room
• If your annual income is less than $50K
  • Maximize your TFSA, then maximize your RRSP
• If your annual income is more than $50K
  • Maximize your RRSP, then your TFSA
• Invest in broadly diversified, low cost , index funds

Physical Fitness

Your physical fitness is composed of four aspects

• Strength
• Cardiovascular
• Flexibility
• Balance

In your late twenties your natural growth from being young will start to fade and you should start to hold this off by taking care o f yourself - in short - exercise every day. It is that simple and that hard.

Read Younger Next Year: Live Strong, Fit and Sexy - Until You’re 80 and Beyond by Chris Crowley and Henry S. Lodge, M.D.

• Will speak to the need to exercise every day
• Yoga - great exercise that gets strength, flexibility and balance and you can do it at home
• Add in some cardiovascular work

Build Your ID Capital

Use your twenties to start building your ID capital.

Make decisions and do things that help you grow as a person

Try this

• Meg Jay: Why 30 is not the new 20 / The Defining Decade

Learn and Grow

There are many more books, web sites, etc. that will build on the above areas and allow you to continue to grow - do this.

Find other areas of life that you are interested in and continue to grow.

Where ever you are in your life there are

• Positives - things that this stage in life bring to you to enjoy; enjoy them
• Negatives - things that this stage in life that may not be as good; don’t worry about them, it will get better