If you are in your teens or 20’s , this blog post is specifically for you. But I’d dare to say, you can probably take something away from this no matter your age. In general, it’s never too late to start your journey to financial freedom but the younger you are, the more of a head start you have on building wealth. If I could go back in time and give my 20-year-old self some financial advice, here’s what I would say:

(chart source)

If you have access to a 401k through your job, invest the most you can in it now. When I first got my full-time job, I didn’t care about putting money away in an account that I couldn’t touch for 50 years. Little did I know , 401k and other pre-tax accounts like it are one of the most fail proof ways to build wealth over the long-term. Not only do you save money now on taxes by putting money away before the government gets to it , but your money grows exponentially by compounding year over year (as shown in the chart above).

There is also the myth that you can’t touch the money in your pre-tax accounts until your 65 or older. That is true in many cases, so I’m not advising you to use the funds for a house down payment (that would be a big no-no due to the high penalties). But, say you did want to retire early before the standard retirement age, there are ways to access your investments without penalty for living expenses using something called the Roth IRA conversion ladder. Even if you don’t access it earlier than the standard age, by contributing to it in your 20’s, you can rest assured that you will be set for retirement down the line. So, if your company matches your 401k contribution , at the very minimum, contribute up to the company match. And if you can, contribute even more. If you don’t have access to a 401K, you can fund IRA’s which would give you the same benefit of a 401K.

3. Take (Calculated) Risks

Now is the time to take as many calculated risks as you can. Assuming you don’t have a mortgage, children or spouse, this is the one time in your life where you have the right to be completely selfish. You should be exploring all of your interest to see what sticks. What is your passion? Can you find a way to make money from it? Start a business, work hard in developing your skills, stay  up late working on it. Go all in now and take SMART or as I like to call it, calculated risks.

4. Don’t Go Into Debt & Keep Your Expenses Low

Start paying off or make a plan to pay off your debt now. While in your 20’s make a promise to yourself that you will not accumulate debt. Don’t fall into the trap of buying things to make yourself feel better and impressing people with material things. The earlier you understand that debt and high expenses are what keeps most people working in jobs they hate, feeling trapped in lives they can’t stand, the better off you will be. Practice living a life of simplicity. You don’t need to live off of beans and rice but you also don’t need to go to the most expensive restaurants to have a good meal.

5. Have a Clear Vision For Your Future

Start thinking about what you really need in life to make you happy. How much money do you actually need to be comfortable? At one point, I thought I needed expensive things, and millions of dollars to be happy and live a good life. I know now that I really only need to cover my basic expenses and have enough money to splurge on a good dinner or vacation here and there. Knowing the type of life I want to live and how much money it will take me to live it, gives me a deeper sense of what I am working towards.

Overall, remember you have the power of time on your side they earlier you start savings, investing and practicing good money habits. As a bonus, check out the interview I did with Shaina, my awesome sister from The Mindful Rise, a lifestyle blog for college students, millennials, and young artists.