There are many advantages to being in your 20s and early 30s. You can build a foundation to ensure your financial success for a lifetime. The decisions you make now have a tremendous amount of influence over your future. Make the effort to ensure that you are making wisest choices possible.
The earlier you can take advantage of these strategies, the better!
Determine your financial future today:
1. Create an emergency fund.
- It only takes one minor financial catastrophe to affect your finances for many years.
- A $1,000 car repair can cause more challenges than you think. You might have to max out your credit card to get the repairs done. This can negatively affects your credit score. The additional monthly payment can make you late for other payments.
- Work slowly and gradually toward building up a few months of living expenses, and you will be able to handle nearly anything.
2. Start saving for retirement.
- Time really is on your side. You do not have to save much each month to retire in style if you get started early enough.
- Waiting just another 7 years will cut your eventual nest egg in half.
- Waiting 14 years will cut it by 75%.
- Get started right way. Speak to someone in your Human Resources (HR) department about how to get things rolling.
3. Build a positive credit history.
- If you want to purchase a car, home, or receive any other type of conventional financing, in the future, your credit history is important.
- Your credit score can affect many things, including purchasing a cell phone plan or getting a job.
- Responsible use of a credit card or two is the easiest way to accomplish this.
- A small loan, with up to date pay-backs, from your bank is another simple option.
4. Avoid debt.
- Dealing with debt is like climbing a mountain with rocks in your backpack.
- Avoid purchasing items you simply cannot afford.
- Few stresses match the feeling of being weighted down with heavy debts. You have probably seen them in the news, but even very wealthy people have the ability to accumulate more debt than they can manage.
5. Consider a “new-to-me” car.
- A new car may seem like a mandatory purchase, but new cars are considerably more expensive than those just a few years old.
- Remember, we are working at taking on too much debt.
6. Manage your online reputation.
- Your employment can be affected by your online presence. Look at all of your social media accounts and decide if your present or future employer would be impressed. Would your mom?
- There are many good reasons why most working adults avoid spending a great deal of time on sites like Facebook.
- Your goal is to always give the impression that you are an intelligent, mature adult.
7. Get insurance.
- Protect yourself and your possessions.
- At the very least, have renter’s insurance to cover your possessions and health insurance to protect against catastrophic medical bills.
- Most states require that you have car insurance.
- Other types of insurance may also apply.
- It can worthwhile to contact you insurance professional.
8. Take advantage of your employer’s benefits and perks.
- Many employers offer benefits. Be sure that you are getting all you can out of them.
- These can include life insurance, savings plans, 401(k) matching, and host of other benefits.
- Read your employee handbook and talk to your HR department.
9. Consider waiting to build a family until you are financially stable.
- Getting married can be expensive, but is relatively easy.
- Staying married can be difficult.
- The failure to stay married can create many financial challenges, especially if there are children involved.
- Even in secure marriages, children are expensive.
By the time you are 30, you will not recognize your 22-year old self. Take your time and make a wise decision.
Right now, you are in perhaps the most influential period of your financial life. Any mistakes can potentially affect your financial future for decades to come. Getting off to a good start is the best way to ensure a positive financial future. You also have tremendous financial freedom. Use that freedom to build a strong financial foundation.
For more information, see MartinaMcGowan.com
PS- You may be well beyond 20 or 30, but it is never too late to explore new ideas to secure your future!