The best part about being young is that you think you will live forever. The worst part about being young is that you think you’ll live forever, so why not live for today?

However, the odds are, thankfully, that you will live much longer than today, and those days need to be planned and provided for.

I have advised many ‘baby boomers’ over the years and would like to remind all of the young people out there reading this that, once upon a time, these ‘oldies’ were as young as you!

Sure, they might have travelled around in a horse and buggy, but the challenges they faced in building wealth were just as real.

When they were starting out, there was very little credit available and it was hard to get. Believe it or not, credit cards were yet to be invented. This meant that they had to develop great saving habits very early on, because it was the only way to get ahead.

The power of these habits is unbelievable – now that most baby boomers are retired, they still can’t help but live within their means. This is a great thing!

They can now relax because, even while living a wonderful lifestyle, many of them will never spend all the money they have saved.

Good saving habits should be the number one priority for young people. It’s like going to a gym – the first month is pain and torture, then your body adjusts and you get almost addicted to the healthy endorphins.

Good saving habits should be the number one priority for young people. It’s like going to a gym – the first month is pain and torture, then your body adjusts and you get almost addicted to the healthy endorphins.

You develop muscle memory so that if you have a break, your body responds even quicker when you resume exercising. Saving money is exactly the same.

By the way, I’m talking about saving in addition to your superannuation – super is fantastic, but your employer contributions will not be enough.

So, how ‘fit’ are you when it comes to your savings goals? Here’s how I would rank it:

  • More than 10 per cent of income
  • You are a hardcore gym junkie – this is the same as six days a week pumping iron!

  • Seven to 10 per cent
  • Great all round fitness here – a couple of workouts plus jogging and cycling on ‘off’ days.

  • Two to six per cent
  • The equivalent of a weekly workout plus a few walks around the park.

  • One per cent of income or no savings
  • Couch potato!