Simple choices you make today can have a huge impact on your life decades from now. Yes, it is a bit scary when you think about it! Why should your 18 to 20-year-old self be responsible for some of the most consequential decisions you may ever face?

Your prefrontal cortex hasn’t even fully matured yet… and that part is literally responsible for good decision making skills.

And when you turn forty-something, maybe you will look back and wish you had taken a very different approach to life, especially when it comes to money.

But you can take action now and set yourself up for success, especially if this is your first time working a “real job”.

If you were planning on spending that first paycheck all in one go or without planning ahead, it’s time to rethink.

The more you wait, the harder it will be to develop good financial habits.

Fortunately, being young already places you in a very advantageous position! The older you get, the harder it is to start saving or investing your money.

As time passes, you will have more responsibilities, more expenses, more bills to pay, more debt.

Furthermore, the sooner you start investing, the longer your money will have to sit in your investment account and build up over time.

So, what should your first step be?

Knowledge is power. Take control over your finances by educating yourself and making informed decisions.

You don’t have to be an expert or understand all the concepts right away, the basics are more than enough when you’re just starting out.

When you don’t know what something means, don’t be afraid to ask someone you know that has more experience than you.

It’s usually way simpler than it seems at first. Before you know it, you will be familiar with all those terms that seemed so strange to you before.

No matter how much you make, saving early will be highly beneficial to you in the long run. This will help you build the habit of saving on a regular basis.

Make sure to create a savings account. If your money stays all in one place, you might end up spending more than you should and regretting it later.

By setting up automatic transfers from your checking account to your savings account, you won’t even have to worry about it - your bank will do it for you.

And don't forget about your emergency fund and your retirement account! They are essential to achieving financial security and, with that, some much needed peace of mind.

When you keep track of your expenses, it’s much easier to see where your money is going and know where you can spend less.

You can use a dedicated app or a notebook to write it down, depending on what feels most comfortable to you.

Finally, set goals for yourself and remember that the most important thing is sticking to those habits for the rest of your life!

Take things one step at a time and trust that you can make good decisions for yourself.

If you put effort into it now, it will pay off immensely in the future.

Cover photo by Christian Dubovan on Unsplash