Wealth building is not something that happens on accident. It’s something you have to do deliberately and purposefully to reap the rewards when you hit retirement age. It’s also something most financial experts will recommend you start doing as early as possible. Why? Because investing is one of the few instances where time is on your side.
Here’s why you should prioritize wealth building even if you’re still young:
The Future is Uncertain
You may be able-bodied and capable of making reckless decisions right now, but one wrong move could change everything and leave you unable to do full-time work. Even in less grim situations, the company you’re working for might fold and leave you jobless. Though you’re still able-bodied, the high unemployment rate means it will be hard to find another job that will pay enough to cover your basic needs. Even entrepreneurs are not immune to the volatile market. Your own business may experience difficulties and need to change course. Any financial advisor in Utah can list more ways for your future to change drastically so it’s important that you are prepared for these uncertainties.
Your Needs Will Change
When you’re fresh out of college, you’re still familiar with instant ramen dinners and other ways to save money. As you get older and you meet more adults who are earning their keep, you’ll want a lifestyle that will reflect your new adult status. Then comes settling down with your partner and starting your own family. As your life situation changes, so do your needs. You will realize that you’re no longer prioritizing those impulsive shopping trips because you buy diapers in bulk instead. Your needs might require more from you financially and if you don’t have the savings to back you up, it will be a big problem.
Aging is Expensive
Right now, you can afford to skip health insurance or to travel the world without saving for the rainy days. However, 20 or 30 years from now, you will not feel as free. Despite advancements in technology, the human body will still age and when it does, it becomes weaker and more prone to serious illnesses. If you try and do the same things you did in your late twenties, you’ll easily realize how you’ve changed physically. Those changes are not cheap because the healthcare industry considers older clients as more susceptible to illnesses, which makes coverage of their bills more expensive. That’s if you can manage to get coverage at all. If you don’t have a health card in your retirement years, your money will easily go down the drain thanks to expensive maintenance medicine and endless medical tests.
Dying Costs Money
If you’re not spooked by the high cost of aging yet, just think about the cost of dying. It’s not as taboo now that it’s become so expensive. Most people resort to pre-planning their funeral to keep some of the costs low. Funeral costs are not something you should just ignore because you won’t be around to tackle them. Think of the burden this puts on your children if you have not saved for the inevitable.
At different stages of your life, your needs change. Build your wealth now so that you can be financially ready to deal with them in the future.