I didn’t know a thing about money all through college. I was actually quite pathetic. I didn’t even have access to my savings account. (Confession: I use to call my mom and ask her to transfer money from my savings in to my checking ’cause I didn’t know how. Embarrassing.) I was ignorant.
Fortunately, this turned out to be a blessing in disguise. I had two credit cards while I was in college. I didn’t know a thing about they worked, so instead of use them, I just let them collect dust in the a drawer. Four years later, I graduated college with no C.C. debt, not realizing that was unusual.
I graduated in 2007. Luckily, I managed to find gainful employment shortly after. In a matter of months, I went from making $7,000/yr to $37,000. I had more money than I knew what to do with. I tried to spend it. Heck I even bought a motorcycle! It didn’t take me long to realize I’m just not a spender. Frugality is in my blood. I never had to the urge to buy a new car, or a new computer, or a new outfit. Turns out, that’s another huge blessing.
On my first day of work I had a ton of paperwork to fill out: health insurance, life insurance, etc. In the pile was a 401K form. I couldn’t even spell 401K, but for some reason I decided to throw 5% of my gross pay into it each month. Even though my 401K contributions went to a sucky investment vehicle for the first couple months (100% bond funds), I formed the habit of saving for retirement as early as I could.
The big picture:
Avoiding credit card debt, getting a job, and contributing to retirement were all pretty awesome, but the single best move I unknowingly made came from a conversation with a friend about Roth IRAs. Intrigued, I figured I should read up on Roths. That research snowballed in to an obsession with personal finance and the reason this blog exists.
Realizing I already had decent financial habits, I decided it was time to maximize my potential. And I’ve been doing just that for the last five years. It’s an ongoing process and I am definitely not the smartest kid in the room, but I’m excited my eyes were opened to personal finance at 22 and not 52.
Those are the best PF moves I’ve ever made. What have been some of your best PF moves? Maybe they were intentional decisions like never using a credit card. Or perhaps it was dumb luck, like not being able to afford a home at the top of the market which saved you from being upside down on a mortgage today.