Financial Tips Via Text

The other day my friend was working on a project for school and texted me the following:

What are 3 or 4 important things a person in their 20s should know about finances?

Talk about a challenge!  No, coming up with answers wasn’t the challenging part – it was trying to make them concise enough for a text.  So here was my reply:

1. Roth IRA max is $5,000…make it a goal to use this to start ur retirement.  2. Small expenses add up – eating out, coffee, clothes..  3. Give every dollar a purpose – budgeting is your friend.  4. Use this time to build a 6 months of expenses in an emergency fund.  5. Start saving for a home beyond your emergency fund.

So here’s your challenge – if you had to reply to her text in 60 words or less, what financial tip would you give to someone who is 20 years old?