AP

Liz Weston: Just Starting Out? Learn From Our Mistakes

Aug 15, 2022, 4:00 AM | Updated: 4:51 am

Those of us who write and talk about money for a living tend to have our financial acts together. But that wasn’t always the case. I invited some personal finance experts to share what they wish they could have told their younger selves about money.

INVEST EARLY, EVEN IF IT’S SCARY

If the stock market scares you, nationally syndicated Washington Post columnist Michelle Singletary can relate. Singletary says she avoided investing for many years because in her first job out of college, an older co-worker — one who was close to retirement age — warned her that stocks were too risky.

Singletary later realized that someone in their 20s has decades to ride out stock market swings, and that she could have afforded to take much more risk with her investments.

“The lesson I learned was to look at my own individual situation and invest based on my timeline and goals,” Singletary says.

STUDENT LOAN DEBT CAN PAY OFF

Darian Woods , a reporter and producer for “The Indicator from Planet Money” podcast, says he can no longer remember exactly how much he borrowed to get a master’s in public policy from the University of California, Berkeley — just that his balance was “in the tens of thousands of dollars” by the time he graduated.

The debt felt enormous. Woods wishes he could reassure his anxious younger self that the loans were a solid investment in his future. Woods, a New Zealand native, landed a job as an analyst for his country’s treasury department and was able to pay off the loans in a year.

“That debt wasn’t as much of an albatross as I’d feared,” Woods says.

SAVING, SPENDING, EARNING: THEY’RE ALL IMPORTANT

Paco de Leon , author of the book “Finance for the People: Getting a Grip On Your Finances, ” has two bits of advice for her younger self. The first is to save, no matter what. Saving can feel futile on a small income, but the amount you save is far less important than the habit of saving that you’ll develop, she says.

The second piece of advice: Deal with your pain.

De Leon graduated with a degree in finance and a minor in economics. But a head full of knowledge about money concepts was no match for what de Leon calls “a deep-rooted scarcity mindset” and a profound sense of inferiority. De Leon says she didn’t earn enough for years because she wasn’t convinced of her own worth and bought expensive things she couldn’t afford, hoping to get validation from others. She wishes her younger self had spent time in self-reflection and therapy to work through her psychological issues.

“Do the work to heal your pain, so you aren’t creating more unnecessary problems for yourself,” de Leon says.

DON’T MAKE WORK YOUR LIFE

Tess Vigeland is host and senior producer of The Wall Street Journal’s “As We Work” podcast. She, too, has both practical and philosophical advice for her younger self.

The practical: Never, ever carry a credit card balance if you can help it.

“I got myself in deep credit debt throughout my early and mid-20s, because I lived life like I had my parents’ bank account, when in fact I had a tiny fraction of that,” Vigeland says.

The philosophical: Develop interests outside of your job.

Vigeland loved her work in public radio — until she didn’t. In 2012, she abruptly quit her job as host of American Public Media’s “Marketplace Money ,” a personal finance show, with no clue about what she wanted to do next.

Part of that journey became a book, “Leap: Leaving a Job with No Plan B to Find the Career and Life You Really Want.” But Vigeland says life after public radio might have been easier if her work hadn’t been such a big part of her identity.

“Have something you love to do outside of what you do for a living,” Vigeland says. “It will help down the line if you decide to leap to another career or go back to school — you won’t be stuck in just one idea of who you are and what you can do.”

AND MY TWO CENTS

Most of us can look back at our younger selves and see how much we’ve matured over time. But somehow we think our evolution has stopped. Whether we’re just starting our careers or have long since retired, the so-called “end of history illusion” convinces us that we won’t change much from the person we are today.

If I’d known about this psychological quirk, maybe I would have worried less about getting it all figured out and making exactly the right career and money moves. Who I am and what I want won’t stay the same. I’d tell my younger self that the important thing is to do the best I can today, and let tomorrow take care of itself.

(Spoiler alert: It all works out.)

___________________________________________

This column was provided to The Associated Press by the personal finance site NerdWallet. The content is for educational and informational purposes and does not constitute investment advice. Liz Weston is a columnist at NerdWallet, a certified financial planner and author of “Your Credit Score.” Email: lweston@nerdwallet.com. Twitter: @lizweston.

RELATED LINK:

NerdWallet: Personal finance defined: The guide to maximizing your money https://bit.ly/nerdwallet-personal-finance-defined-the-guide-to-maximizing-your-money

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Republican presidential candidates, former New Jersey Gov. Chris Christie, left, talking with forme...

Associated Press

The GOP debate field was asked about Trump. But most of the stage’s attacks focused on Nikki Haley

The four Republican presidential candidates debating Wednesday night mostly targeted each other instead of Donald Trump.

2 days ago

Law enforcement officers head into the University of Nevada, Las Vegas, campus after reports of an ...

Associated Press

Police say 3 dead, fourth wounded and shooter also dead in University of Nevada, Las Vegas attack

Police said a suspect was found dead Wednesday as officers responded to an active shooter and reports of multiple victims at UNLV.

2 days ago

President Joe Biden's son, Hunter Biden, leaves after a court appearance, July 26, 2023, in Wilming...

Associated Press

Republicans threaten contempt proceedings if Hunter Biden refuses to appear for deposition

House Republicans are threatening to hold Hunter Biden in contempt if he does not show up this month for a closed-door deposition.

2 days ago

Sen. Tommy Tuberville, R-Ala., listens to a question during a news conference, March 30, 2022, in W...

Associated Press

Tuberville is ending blockade of most military nominees, clearing way for hundreds to be approved

Sen. Tommy Tuberville announced Tuesday that he's ending his blockade of hundreds of military promotions, following heavy criticism.

3 days ago

An employee works inside the Hanwha Qcells Solar plant on Oct. 16, 2023, in Dalton, Ga. On Tuesday,...

Associated Press

US job openings fall to lowest level since March 2021 as labor market cools

U.S. employers posted 8.7 million job openings in October, the fewest since March 2021, in a sign that hiring is cooling.

3 days ago

Megyn Kelly poses at The Hollywood Reporter's 25th annual Women in Entertainment Breakfast, Dec. 7,...

Associated Press

The fourth GOP debate will be a key moment for the young NewsNation cable network

By airing the fourth Republican presidential debate, NewsNation network will almost certainly reach the largest audience in its history.

3 days ago

Sponsored Articles

...

Dierdre Woodruff

Interest rates may have peaked. Should you buy a CD, high-yield savings account, or a fixed annuity?

Interest rates are the highest they’ve been in decades, and it looks like the Fed has paused hikes. This may be the best time to lock in rates for long-term, low-risk financial products like fixed annuities.

Follow @KTAR923...

West Hunsaker at Morris Hall supports Make-A-Wish Foundation in Arizona

KTAR's Community Spotlight this month focuses on Morris Hall and its commitment to supporting the Make-A-Wish Foundation in Arizona.

...

Desert Institute for Spine Care

Desert Institute for Spine Care (DISC) wants to help Valley residents address back, neck issues through awake spine surgery

As the weather begins to change, those with back issues can no longer rely on the dry heat to aid their backs. That's where DISC comes in.

Liz Weston: Just Starting Out? Learn From Our Mistakes