How To Transform Your Money At Any Age

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Transformation can be a scary word. Thankfully, the act of transformation doesn’t have to be. And, in fact, I have found the act of transformation to be enlightening and fulfilling. Not surprisingly, I have transformed my life and my money throughout the years and I wanted to share a few tips and tricks I learned along the way. So, if you’re ready to transform your money, keep reading.

Before we get into the nuts and bolts of it all, I want to acknowledge that everyone starts from a different place in life and has varying experiences along the way.

And because of that, it’s obvious that there is no One-Size-Fits-All answer to transforming your money. But, there are guidelines you can use to keep your eye on the ball and make adjustments to reach your goals regardless of your life season. And with that, let’s get into the details!

The Early Years 

For the purposes of this post, the early years refers to any age before the age of 20. Oftentimes, people discount these years as not carrying much weight, but let me tell you, that is false.

The early years are when we’re most impressionable. If we see people we look up to (think: mom and dad) buried in credit card debt and having difficulty paying monthly expenses, there’s a high probability that that behavior will get internalized as normal.

If, on the other hand, we see the most influential people in our lives saving as much money as possible and only spending money during times of need, then that will be seen as normal.

So, don’t dismiss these formative years as not having anything to do with the way you handle your money now. And, if you have children, take note, because they are watching you.

When I was a child, I watched my dad save every last penny and I watched my mom blow all of her money every payday. As an adult, I can distinctly see both of those patterns in myself – especially when I think about the way I handled money in my 20s.

I’m willing to bet you can also pinpoint the reasons you handle money the way you do.

But, regardless of how you got here, you are here. Just like that little dot on every map you’ve ever seen. No more excuses and no more blaming other people (even your parents) for your situation. After all, this post is all about transforming your money at any age. So, let’s look at how you can do just that!

Young Adulthood (20s)

If you’re in your 20s, you’re in some serious luck. Why? Because you have time on your side. And time is your most valuable asset when it comes to wealth accumulation. When you have time on your side, you’re able to save a lot less money to achieve the same end.

When I was in my 20s, I had a good head on my shoulders and actually started saving quite a bit for retirement. I was contributing 10% to my 401(k) after college and even opened a Roth IRA.

Unfortunately, I was convinced I would be forever young and allowed myself to get derailed by not-so-great relationships. By the time my 30th birthday rolled around, I was on the cusp of stopping my retirement contributions to focus on ending a long-term relationship in order to rebuild my life. That ended up costing me a good chunk of my early 30s and a whole bunch of lost opportunity.

Need more proof of the power of time? Check out the infographic below. The numbers truly do speak for themselves.

Infographic credit: Forbes

Other articles you might enjoy:

• Proof You Can Royally Mess Up With Money And Still Retire Early
• 7 Quick Side Hustles Busy Parents Can Start This Weekend
• How To Dig Your Way Out Of Debt When You Feel Hopeless
• How To Retire Rich Without Lighting The World On Fire
• 9 Money Hacks That Took Us From The Poorhouse To The Penthouse

Full-Blown Adulthood (30s & 40s)

If you’re like me, you’re smack dab in the middle of full-blown adulthood. In my opinion, this is both a blessing and a curse. It’s a blessing because we are fully capable of making decisions based on experience. It’s a curse because we can’t turn back time to fix our past financial wrongs.

At this stage of the game, you pretty much know what you need to do:

• Eliminate debt
• Decrease expenses
• Increase income

By widening the gap between the money coming in and the money going out each month, you’ll free up cash that can, in turn, be used to build wealth.

So, if you’re reading this thinking that you should be much farther ahead than you are right now, don’t beat yourself up. You’re not alone. And, in fact, I was in your exact shoes just a few short years ago.

Before starting this blog, my husband and I were spending money like we were still in our 20s. It wasn’t until we nearly made a catastrophic financial mistake that we realized our actual age and how foolish we were acting. That’s when we sat down together and made a commitment to frugality and building wealth.

Since then, we have been amazed at how quickly we have been able to turn our financial ship around and increase our bottom line. If you’re in a similar situation, sign up for my free 5-day email course that will allow you to Take Control Of Your Money starting today!

Financial Tools I recommend:

• Free Budgeting and Wealth Tracker
• Check Your Credit Report and FICO Score
• Refinance High-Interest Student Loans

  

Mature Adulthood (50s & Beyond)

If you happen to be in your 50s, or even older, I want you to know that it’s still not too late to take control of your money and retire rich.

We’ve all made poor financial decisions in our lives. The key to turning it all around and starting to build wealth is acknowledging those decisions and resolving to make better decisions moving forward.

So, if you’re children are grown and you’re staring down retirement without anything saved, don’t panic. Instead, take action. I highly recommend signing up for my free 5-day email course above to get started down the right financial path. Just like us, you’ll be amazed at how quickly you can make progress.

And there you have it, a pretty simple explanation of what you need to do at every stage of the game.

Do you have any other recommendations?