Finances When You’re Just Getting Started

Dear Younger Me,

You are in a season of life where everyone wants to be you. Kids and teenagers want to be you because they can’t wait for school to be over. Older adults want to be you because they miss the days when schedules were lighter, free time was plentiful, and life was less expensive.

You are in the sweet spot: you finally have income coming in (congratulations on landing that first job, btw!) and time ahead of you. Don’t waste either one. This is the season to establish wise habits for both the time and the money you are stewarding.

Your plan should be King Solomon’s plan for time and money; He knew a thing or two about wealth at a young age, so heed his advice:

Time is on your side.

In the time-value-of-money equation, time is the most powerful variable. Start saving now. The earlier you invest, the easier it will be to reach your goals. Employer retirement plans like 401(k)s and tax-advantaged accounts like Roth IRAs are your friends. Aim to fund these with ~10% of your income and never, ever leave employer-match money on the table.

“…whoever gathers little by little will increase it.” — Proverbs 13:11b

Budget everything.

Oddly enough, budgeting gives you more freedom, not less. When you know where your money is going, you gain confidence and reduce stress. Using a good budgeting app makes this easy.

“The plans of the diligent lead surely to abundance…” — Proverbs 21:5a

Give time and money to the same ministry.

Get connected to a local church by giving both your time and money. There is something powerful about serving and giving in the same place. As your heart and treasure move together, generosity becomes a joy and will be contagious to others.

“One gives freely, yet grows all the richer…” — Proverbs 11:24

Debt is dangerous. Just avoid it.

Pay off those lingering student loans as quickly as you can and save up so you can pay cash for a new-to-you car, rather than financing a brand-new car. Cars go down in value. The only debt that may ultimately benefit you is debt tied to assets that increase in value, such as an education or a home.

“... the borrower is the slave of the lender.” — Proverbs 22:7

Ask for counsel, not cash.

Your parents’ role is changing now; they should be giving you counsel, not cash. The Lord has different plans for their finances in this season of life. When you need help (and you will), ask for wisdom—it will last longer than money.

“... in an abundance of counselors there is safety.” — Proverbs 11:14b

Really, stewarding time and money as you get started comes down to one key idea: “Spend less than you earn and do it for a long time."

“A faithful man will abound with blessings…” — Proverbs 28:20

If you need to know anything else about #adulting, King Solomon’s Proverbs will help with that, too.

Rooting for you,

Older, Wiser Me

This article was published in our Faithful Steward magazine, a quarterly publication filled with encouraging stories, biblical teaching, and practical tools to help you grow as a wise and joyful giver. If you'd like to begin receiving Faithful Steward, consider becoming a FaithFi partner.