I'm a Financial Adviser: What I Would Tell My 18-Year-Old Self About Money

Dear 18-year-old me, we need to talk.

If I could sit down with my 18-year-old self over a cup of inexpensive coffee (because that’s what we could afford back then), I’d have a lot to say — most of it about money.

Back then, I thought budgeting was something parents did, credit cards were free passes to whatever I wanted, and retirement planning? That was something for people who owned nice furniture and knew how to fold fitted sheets.

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The Kiplinger Building Wealth program handpicks financial advisers and business owners from around the world to share retirement, estate planning and tax strategies to preserve and grow your wealth. These experts, who never pay for inclusion on the site, include professional wealth managers, fiduciary financial planners, CPAs and lawyers. Most of them have certifications including CFP®, ChFC®, IAR, AIF®, CDFA® and more, and their stellar records can be checked through the SEC or FINRA.

I was busy chasing dreams, working odd jobs and learning just how far a college meal plan could stretch. Money felt like this slippery, abstract thing I was eventually supposed to figure out.

Looking back now, as someone who’s built a business, weathered financial storms and finally learned that adulting includes understanding your bank statements, I wish I had been more financially responsible.

But time travel hasn’t been invented yet, so I’m writing this article for the 18-year-olds out there who are willing to read it and consider my advice. I also added a few tidbits of wisdom from other successful professionals (you know, for good measure).

Budgeting isn't punishment, it's freedom

As you can imagine, I didn’t like or understand budgeting when I was 18. I preferred spontaneity. It took a few years of scrambling to cover rent and pay for impulse buys I couldn’t afford to realize that budgeting isn’t about saying no to fun — it’s about saying yes to what matters most.

Nowadays, I agree with Andrew Bates, the COO at Bates Electric, who says, “More young adults should know about the 50/30/20 budget rule: 50% of your income goes to needs (rent, groceries, bills), 30% to wants (dining out, streaming subscriptions) and 20% to savings or debt repayment.”

What's the difference between wants and needs?

What is meant by wants vs needs? If I want something, doesn’t that mean I need it?

When you’re 18, wanting a pair of Christian Louboutin shoes might seem the same as a “need,” because, you know, they look cool. Spoiler alert: They’re not the same.

• Needs are the non-negotiables: housing, food, utilities, health care and transportation
• Wants are the extras: fancy coffee, expensive footwear, impulse buys online and the latest phone upgrade

Here’s a trick I learned: When you’re considering a purchase, ask yourself, “Will this help keep a roof over my head?” If the answer is no, it’s probably a want, not a need.

Investing isn't just for rich people

For my young self, investing was something I’d do after I had money — like, real money. The kind that came with suits, stockbrokers and words like diversify and portfolio. So I was waiting until I felt ready, until I felt I had enough.

Here’s what I wish I’d understood sooner: You don’t need a lot of money to start investing — you just need to start.

The real magic of investing isn’t about how much you put in (it can be as little as $50 per month). It’s about how long it stays in. That’s the power of compound interest.

As Raihan Masroor, founder and CEO at Your Doctors Online, puts it, “When you’re young, time is on your side. If you learn to take care of both your physical and financial well-being, you will reap the benefits of compound interest in all aspects of life later on.”

And no, you don’t need to be a stock market genius to start investing. In fact, you’re better off if you aren’t trying to outsmart the market. Most millionaires aren’t day trading. They’re setting up automatic monthly contributions, forgetting about them and letting time do the heavy lifting.

Debt is not evil, but it's not your friend either

If I had a dollar for every time I thought, “I’ll just put it on my credit card and pay it off later,” I wouldn’t need a credit card at all.

Whether it’s student loans or credit cards, at 18, debt seems like a harmless safety net. You’re happy to remove the present barriers, but you might forget about interest charges, which quietly snowball in the background.

Here’s what I wish I’d understood sooner: Debt isn’t inherently evil. A mortgage, student loan or even a reasonable car payment can all be useful when handled wisely. But debt isn’t your buddy either.

"Debt is like a hammer,” says Jeffrey Zhou, CEO and founder of Fig Loans. “Swing it the right way, and you build wealth. Swing it the wrong way, and you’re just smashing your savings."

The key is understanding the difference between good debt and bad debt. Good debt is the kind that helps build your future, like education or property. Bad debt is high-interest consumer debt that drains your checking account, leaving you with nothing to show for it.

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Of course, even good debt needs to be approached with eyes wide open. Just because a bank says you can borrow a bunch of money for a fancy new car or a big house doesn’t mean you should go for it without first considering the impact on your budget.

Invest in yourself first

If I could shake some sense into my 18-year-old self, I’d tell him to stop chasing fleeting thrills and start investing in the one asset that pays dividends for life: himself. Back then, I’d skip workshops, online courses or networking events because I thought they were “too expensive” or “not worth it.”

These opportunities provide new skills and experiences that make you more valuable to both employers and yourself. Think coding boot camps, public-speaking classes, honing financial literacy or even taking unpaid internships that open doors.

None of these would bring you money right away, but they would be an investment in your future self.

"Continuous education is your ticket to staying ahead,” says Tomas Melian, SVP of Marketing at DiabetesTeam. “Take becoming an SVP of Marketing — it demands ongoing learning, from mastering digital trends to sharpening leadership skills, ensuring you’re always ready for the next challenge."

The more skills and knowledge you earn, the more you can save, invest and build toward financial independence. Your potential is your greatest asset, so don’t let it go to waste.

If I could sum it all up for my 18-year-old self — and maybe for you, too — it’s this: Money isn’t just math, it’s a mindset. Start small, stay curious, and don’t wait to feel ready. Money isn’t everything, but managing it wisely frees you to chase what truly matters.

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