In a world where everything is just a tap away—groceries, rides, entertainment—it’s easy to let finances slide to the backburner. But here’s the truth: the earlier you start planning your finances, the better off you’ll be. Financial planning is essential for Millennials and Gen Z toachieve freedom, whether it’s traveling, buying a home, or gaining peace of mind.

I understand that the world in which we live is constantly changing and that rate of change is only speeding up making it difficult to really wrap one’s mind around how to plan. What will the landscape even look like 10, 20 of 30 years from now? One can only imagine. But, it’s important to remember that deciding to do nothing is a recipe for disaster. So we make the best decisions we can with the information we have.

Here’s a practical guide to kick-start your financial planning journey and build a future you’re excited about.

1. Know Where You Stand

Before you can plan ahead, you need to understand your current situation. That means taking an honest look at:

• Income: What’s your monthly take-home pay?
• Expenses: Where does your money actually go? Tell your money what to do.
• Debt: Do you have student loans, credit cards, or personal loans?
• Savings: How much do you have saved, if anything?

Use apps like Mint, YNAB, or a simple spreadsheet to track everything. Information is power and in this case, empowering.

2. Create a Budget You’ll Actually Stick To

Budgeting doesn’t mean cutting out fun—it means being intentional. Try the 50/30/20 rule:

• 50% for needs (rent, groceries, utilities)
• 30% for wants (dining out, Netflix, shopping)
• 20% for savings and debt repayment

My dad tried to tell me about the power of compound interest when I was a young kid. I have had a job since I was 12 years old pumping gas at a boat club in my home town. I can’t imagine what I might have if I had only heeded his wisdom. I eventually learned and am now passing it on to you. You will thank me later if you pay yourself that 20% as early as possible. You can adjust the percentages based on your situation, but always make room for saving something.

3. Build an Emergency Fund

Life happens—unexpected car repairs, medical bills, or job loss. Having 3–6 months of expenses saved in a separate account can keep you from going into debt when stuff hits the fan. Start small, even $20 a week adds up.

4. Tackle Debt Strategically

Debt can be a huge drain on your finances, especially if it comes with high interest. Prioritize paying off high-interest debt first (like credit cards), then move to lower-interest debt (like student loans). Consider using the avalanche method (highest interest first then moving to the next highest) or the snowball method (smallest balances first for psychological wins and then ‘snowball’ the paid-off payments into the next smallest).

My wife and I used the snowball method when we first combined our finances many years ago and it worked perfectly.

5. Start Investing Early

Time is your best friend when it comes to investing. Even if you can only invest a little, compound interest will work magic over time. Look into:

• Roth IRA or 401(k): Great tax advantages for retirement savings
• Index funds/ETFs: Low-cost, diversified investments
• Apps like Acorns, Robinhood, or Fidelity to get started

The key is to be consistent, even if your investment is small.

6. Set Financial Goals That Matter to You

What do you want your money to do for you? Maybe it’s buying your first home, launching a business, traveling the world, or just feeling financially stable. Define short-term and long-term goals, and work backward to figure out how much you need and when you want to get there.

7. Protect Yourself

Part of financial planning is making sure you’re covered when things go wrong:

• Health insurance: Even if you’re healthy, one accident could wipe you out financially.
• Renter’s insurance: Super affordable and worth it if something happens to your stuff.
• Disability insurance: If you couldn’t work for a while, could you still pay your bills?

Also, consider basic estate planning, like a will and power of attorney, especially if you have kids or property.

8. Keep Learning and Stay Flexible

Your financial journey will evolve as your life does. Make it a habit to check in on your finances monthly, set annual goals, and keep learning about money. Be a student of yourselves as well. Decisions don’t happen in a vacuum. Learn from your mistakes. Studies have shown over the years that sometimes our worst enemy when it comes to financial success is ourselves. There’s a whole field of study called behavioral finance that delves into why we do what we do and how it affects our success or failure.

Conclusion: The Future You Will Thank You

Financial planning doesn’t mean having everything figured out now—it means taking steps today that will make your life easier tomorrow. No matter your income or background, building smart money habits early sets you up for freedom, stability, and more choices down the road. So start where you are, use what you have, and take that first step. Your future self will be glad you did.