Dear Dave,

With COVID-19 and all the resulting economic problems, do you have any advice for what a young person can do to prepare for the future?

Kyle

Dear Kyle,

Regardless of the coronavirus or any economic situation that might arise, there are always a few smart, simple things people can do to protect themselves financially. The number one thing is to live on a written, monthly budget. When you give every dollar a name, and write it down on paper, you’re telling your money what to do, instead of scratching your head and wondering where it went.

Staying out of debt and saving as much money as possible are two other great ideas. Remember, your income is your biggest wealth building tool. If you’re saddled with a bunch of debt, your money goes to creditors—not into your pocket. Saving prepares you for the future and all the unexpected things, both good and bad, life will throw at you.

Even though you’re young, investing is a key component in creating a stable financial outlook for yourself. In your twenties, just $100 a month invested properly in good growth stock mutual funds can make you a millionaire by the time you’re ready to retire.

Like I said, these are all simple things. But they’ll make a huge difference in your financial situation now and in the years to come!

—Dave