8 Easy Ways To Start Building Your Legacy and Wealth in Your 20s or 30s
For a lot of people in their 20s and 30s, “legacy” sounds like something reserved for after you’ve made more money, bought a home or figured everything out. In fact, the younger you are, the more time you have to thoughtfully build your legacy and wealth.
Financial experts offer some tips for getting started.
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Rethink What 'Legacy' Actually Means Today
Kevin Marshall, a CPA and finance professional at Amortization Calculator, said that wealth “is not just about how much money you have; it is about what you do with it and what kind of impact you leave behind.”
Legacy is the sum of your values, your lifestyle and your daily habits, all of which you can start sooner than later.
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Start With One Simple Financial Plan
You don’t need a complicated financial roadmap to start building wealth, Marshall said. “Do one simple thing now.” This could look like a small savings goal, a new investment or paying down debt. “You don’t have to get it all right – just starting is half the battle.”
He warned against skipping this step entirely. “You can have all the money in the world and go broke without a strategy."
Track Your Money To Build Awareness and Control
Before you can grow your money, you need to know where it’s flowing. “Tracking your expenditure can help you understand the flows of money in and out of your life, identify your priorities and discover areas for cost-cutting,” Marshall said.
This step is one of the fastest ways to take control of your financial trajectory early.
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Build an Emergency Fund Before You Take Bigger Risks
Financial stability allows long-term wealth-building to stick. Andrew Gosselin, a CPA at Save My Cent, recommended building an emergency fund and starting regular retirement contributions as early as you can. “Time is a constant. It moves no matter what your financial situation is, so make sure it is working in your favor,” he said.
Emergency savings are especially important “in case things go wrong,” Marshall stressed. “Aim to have enough to cover a few months of essential expenses.”
Start Investing Early -- Even With Small Amounts
The single best way to begin building wealth is simply by starting to invest young, according to Karissa McLaren, a wealth advisor at Oasis Wealth Planning. “People who begin investing at a young age will be much more equipped to leave behind a legacy that will far surpass their generation,” she said.
Wealth-building is a process of consistency and compounding, after all, Marshall pointed out. “You might not realize how every little bit of money you save over the months can really add up in the long run,” he said.
Align Your Money With What You Actually Care About
Wealth-building becomes more meaningful -- and easier to stick with -- when it reflects your values, Marshall said. “Some wish to use their money and skills to help save the planet, others to help others, while others simply wish to live debt-free… their legacy is how they live their life as well.”
There is no need to compromise your savings or investments for something you believe in, Gosselin added. “You can blend both successfully.”
Avoid Debt Traps and Build Smart Habits Early
Early financial decisions can either create momentum or set you back for years. Avoiding high-interest debt and building sustainable habits helps protect your future income and keeps your options open.
“Dream big, but act smart,” Gosselin cautioned. “Make smart financial moves in your 20s and 30s that are realistic and there to stop you from slipping into debt.”
Take Small Legacy Steps Now -- Not Later
Small, consistent actions today compound into long-term impact. “You don’t have to be rich to build real wealth; you can start today,” Marshall said.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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