Finance is often the furthest thing from a 20-year-old’s mind. Instead of thinking about retirement, saving for unplanned expenses and trying to accumulate assets, most of us spend our 20s thinking about where the next house party is. While that’s ok to a certain extent, those who do give a thought to finances in their 20s are often much better off later on in life. They enjoy a more secure financial cushion and they tend to know a lot more about investments and what it means to make their money work for them, rather than the reverse. The following are some pieces of financial advice I wish I knew in my 20s. 

Start Saving ASAP

Putting away a few dollars each week may sound useless but saving money is important and small contributions to your savings over a long period of time equates to a secure financial future. Start out by opening a savings account and try to stick to a schedule of lodging a set amount from your pay check each week. Being committed to building this nest egg will help you learn more about the power of compound interest and, let’s face it, we should all be committed to learning more about our financial system and how it operates. 

Ask for Help

When it comes to finances, most of us are independent. We like to be in control, and we will do anything to avoid having to ask for help. We’re embarrassed to admit that we don’t know what we’re doing, or that we need advice. The truth is that there’s no shame in admitting that you need guidance and asking for help with your money matters. In fact, it’s smart to ask for advice from professionals who know what they’re doing. The earlier you reach out in your journey to financial freedom, the better off you will be. 

Invest in Real Estate

Looking for somewhere to invest your earnings? Think real estate. The best thing is you don’t have to be a professional to get started and you don’t need a huge amount of capital behind you either. One option is to buy shares in income producing rental properties. With the qualified business income deduction on rental property, you can save 20% on your taxable income through REIT investments. Another option is to flip a property or, if you have the capital, you could buy and hold. Real estate is one of the very few investments that will continue to grow in value as time goes on, making it an ideal solution for young investors.

Learn How to Use a Credit Card 

It’s easy to get carried away when you have a credit card in your back pocket. Swipe it for gas, tap it for a new coat or treat your friend to a night out the movies. You might think that a credit card is suitable for all of the above but the truth is that credit cards should only be used for high-ticket purchases like flights and home repairs. The reason for this is the high interest rates. Other tips for proper credit card use include using less than 30% of your credit limit and always paying your bill on time.