10 Steps to Retiring Young

2) Learn How to Manage your Money

Money management is the biggest factor for people, when they make their decision to retire. This applies if you are retiring early, or in many cases retiring at all. The most crucial time for most people to learn about money management are those few years spent in college and those first years out of college. This is typically the first time in your life when you will need to handle real bills. This may also be the first time you are experiencing a real and stable income.

Seeing a large paycheck, or at least one much bigger than you are used to, can lead to big spending problems if you don’t know how to manage your money well. Often, the poor habits built during these years can follow you for decades as you work to pay off credit card and other debts. However, luckily, good habits will follow you in the same way. The difference is that most people do not try to get rid of a good habit, so as you age, your nest egg grows, rather than your debt. Money management is as simple as putting more money into your bank accounts than you withdraw.