You’re not the only one who wishes they’d learned some of life’s key money lessons earlier on. Indeed, even seasoned financial planners have advice they wish they discovered earlier in their life.
From understanding the power of automation to learning that simply saving money wasn’t enough to meet their goals, these nine industry pros disclose the piece of financial advice they would tell their younger selves. If their insights inspire you to take a deep dive into your own strategy, you can use this free tool from our ad partner SmartAsset that can match you to a financial adviser, as well as resources like NAPFA and the CFP Board.
‘Saving alone isn’t enough,’ says certified financial planner Charles Sachs at Imperio Wealth Advisors.
“What I wish I had understood sooner is that saving alone isn’t enough. Like many people, I was taught early on to be disciplined about saving money — but it took years to fully appreciate that savings only get you halfway there. The real inflection point is learning how to put that money to work for you through thoughtful investing.
Investing allows your money to compound and do the heavy lifting over time, so you’re not relying solely on your own labor … When investing is done intentionally and with taxes in mind, it can materially change long-term outcomes.”
‘First, get out of debt as fast as you can … Second, never interrupt compound interest,’ says Philip Gallant, managing partner at The Optimus Group.
“There are two things I wish I knew sooner. First, get out of debt as fast as you can. In retirement, despite all the noise to build up massive amounts of cash, the real key is to lower your recurring expenses as fast as possible. Not carrying debt is as much of a retirement strategy as finding a great investment. Cash flow is really all that counts when you are retired, as well as having a sound back-up strategy for emergencies.
Second, never interrupt compound interest. [Albert] Einstein called compound interest the eighth wonder of the world for a reason. It just keeps getting better the longer you don’t touch it. There are many ways to create income from financial products that do exactly that. Properly designed life insurance products are a key to having access to money where you can continue to earn interest on money you have borrowed from your policy.”
‘Accountability matters, but so does flexibility,’ says Preston D. Cherry, PhD, CFP, founder and wealth adviser at Concurrent Wealth Management.
“Much of today’s personal finance advice, especially online, is filled with ‘shoulds.’ People ask what they should be doing because comparison and one-size-fits-all guidance can leave them feeling behind or riddled with guilt.
But life and money aren’t linear, and nobody likes to be ‘shoulded’ on. Comparing your situation to someone else’s can undermine confidence and lead to decisions that don’t actually fit your life. Accountability matters, but so does flexibility. The most effective financial advice helps people align their money with their lives, not force their lives to fit a rigid financial script.”
“How powerful automation really is,” says Ryan Haiss, CFP at Flynn Zito Capital Management.
“Automating your finances removes emotion from the process. A good example is a 401(k). Money goes in every paycheck without you having to decide when to invest, which helps avoid the temptation to time the market or react to headlines.
When investing happens consistently and automatically, compounding has time to do the heavy lifting. Extending automation to savings, investing and bill payments helps most people stay disciplined and out of their own way.”
‘Dedicate as much (if not more) time, energy and attention on increasing income,’ says CFP Robert Pagliarini at Pacifica Wealth Advisors, Inc.
“I think there is so much emphasis in financial planning on cutting expenses that it is a disservice. I’m all for reducing or cutting unnecessary expenses that don’t improve my life, but I think a much greater opportunity is to dedicate as much (if not more) time, energy and attention on increasing income. It’s more inspiring and more financially empowering. It’s a lesson I wish I had known far earlier.”
‘Personal finance is never really about the money,’ says CFP Akeiva Ellis at The Bemused.
“I wish I had known sooner that while financial literacy and knowledge are important, personal finance is never really about the money. Though I had a lot to learn, not knowing was never my biggest obstacle to progress; doing was.
Real progress started when I finally asked myself, ‘Why am I like this?’ when it came to money management and began unpacking the hidden beliefs and narratives I carried about money. Those often unexamined stories act like a bossy backseat driver, influencing decisions without you even realizing it. Once you address that part, the tactics finally stick.”
‘How to leverage debt and use it to your advantage,’ says CFP Charles Weeks at Barrister.
“My parents always believed any debt was bad debt, and that could not be further from the truth. I wish I had understood how to leverage debt and use it to your advantage. Paying it off just to be out of debt isn’t necessarily the best strategy. You really must look at the cost of the debt, whether there are any tax advantages and what rate our money could grow at if invested as opposed to if you used it to pay off debts.”
‘The compounding penalty of waiting,’ says CFP Riley Saunders at Cassaday & Company.
“What is frequently not talked about is the compounding penalty of waiting. Life experiences, much like capital, pay dividends over a lifetime. Dividends that you can actually often share with another individual or your family.
While the goal isn’t to abandon the discipline of saving, it is vital to recognize that a ‘core memory’ collected in your 20s or 30s can be just as valuable as one collected at 60. Spending intentionally from time to time isn’t a failure of your training; it is a realization that your capacity to enjoy certain moments is a finite resource that eventually expires, regardless of your account balance.”
‘The budget is the foundation of being able to create wealth,’ says CFP Lauryn Williams at Worth Winning.
“The pieces of financial advice that I wish I knew sooner was first, that the budget is the foundation of being able to create wealth. If you don’t know what’s coming in or going out, how can you plan to create wealth or retire, or to do any of the financial goals that you want to? And second, paying yourself first is not just a saying, it’s integral to being able to put what you need aside.
A budget is the key to understanding where you are with your savings. What’s coming in, what’s coming out. And the budget is going to dictate what you’re able to do because ultimately, money is a tool to live the life you want. And then, secondary to that, paying yourself first is a key piece of the puzzle.”