Hindsight is 20/20 and I can clearly tell you what I wish I would have known when I was 18 and starting out on my own. While I can’t go back in time, I can share the lessons I have learned to help those of you looking to start off on the right financial foot. So here are the things that I wish my 18-year-old self would have known.

College isn’t for everyone.

First, I believe that parents should be involved in helping their child figure out what career path they are interested in and their options to get there. If a college degree is necessary then the next step is to research colleges and look into financial aid. How much will college cost and how will you pay for it? Can you go to a community college for classes not specific to your major to cut costs? Can you work while in school to lessen the burden of student loans?

Student loans may seem like the answer for paying for college but if you cannot pay them back after graduation, then the loans are a big mistake. Borrow as little as possible and pay them down as soon as you are able.

Some careers don’t require a college degree. Trade school is another place to look to gain the skills needed for your desired career. Trade schools are often very focused on the skills needed for your occupation, the time to graduate is shorter and they will often place you at your first job.

If you don’t know what you want to do then maybe a grace year is what would be best for you. Don’t waste this year. A grace year is not a long vacation but should be spent working and exploring your talents, passions, interests, and future career possibilities. Try shadowing professionals who are working in a field you may be interested in. Not only will you gain a better understanding of the profession but you will also make helpful connections for the future.

Work hard and save!

While you are young, work hard. I say this because you don’t realize how easy it is to work (and still have time for fun) when you are young. If you chose to have a family, you’ll find you have less time and more expenses. I used to work 2 or 3 part-time jobs and I had enough money to start my photography business and pay for my wedding. The only thing I wish I would have done differently is to start investing in my future. The first thing I should have done was to have an emergency fund. An emergency fund should have enough money to pay for at least 6 months of your expenses. This fund is incase you lose your job or unable to work for a time.

Save and invest.

After the emergency fund, I wish I would have started saving for my future… like retirement. In my twenties I didn’t really NEED a lot of money. I should have been putting the excess in a Roth IRA or investing in the stock market. A Roth IRA is just a smart thing to do. The stock market it my own personal opinion and I am not telling you that it is something that you should do. I have been investing in the stock market for years. Do your research before you start. Use money that you are not going to need access to in the near future. The stock market is a rollercoaster and you need the ability to be patient. I think I will write another post on how I started with stocks because there is more information you should have. I will post the link here so if you are interested you can check out how I got started and my strategy with the stock market.

Live below your means!

This goes for every person in the world, no matter your age. I was at a Christmas party one year and heard several girls in their mid-twenties talking about credit card debt. These girls were definitely trying to keep up with the Kardashians! They had just graduated from college and had student loans, they were driving new cars, getting their nails done, and going on cruises and buying expensive purses, sunglasses and shoes. One girl was complaining about all the debt she was accumulating from student loans, car payments, a credit card balance that she could never pay off. The other girls said, “Oh that is just part of being an adult. Everyone has debt.” I felt sick at my stomach when I heard this. Remember 2008 when people (and businesses) were filing for bankruptcy, the stock market fell, people were losing their homes… it was awful and we are doing it again.

Live within your means. Do not spend more than you make. While I would love to say that you should be able to pay for everything in cash, I realize that it is not always possible. If you don’t have the money to go out to eat every week then don’t do it. Save a little each pay and go out once a month. If you want to go to a concert or on vacation, start saving so you don’t have to put everything on a credit card. If you know that you are going to need a car in the next year or so, start a savings for it. Each month put a little money in an account that is for a car and by the time you need one, you will be able to pay most or all of it in cash. Living with in your means is being wise with your money and having a lifestyle your paycheck can responsibly afford.

I have a friend who makes enough money to be a millionaire in 10 years. I told him that and asked if that was a goal of his (how cool would it be to be a millionaire?!?!)? He said he had never thought about that and that he would have to save money to get there. I found out that even though he was making a crazy amount of money, he spent every paycheck, had debit, and didn’t have anything saved for retirement. I almost fell off my chair! The wealthy are that way because they SAVE and INVEST their money wisely, not because their salary keeps going up.