![]() ![]() Also, make sure to take advantage of any matching contributions that your employer may provide in your retirement plan. That may seem like an insurmountable goal, but starting small by saving even 1 to 3% of your salary can make a big difference in the future. I typically recommend that clients save 10% to 15% of their annual income towards retirement. Now that you’ve spent your 20’s building the foundation for your financial life, it’s time to make sure you’re also tackling the big picture goals like saving and investing for retirement. It’s important that you check your credit report and score (also available through Mint), learn how it’s calculated, and work to improve it. That little number can play a big role in the home you buy, the car you drive, and even the job you hold as some employers (especially in the finance world) will pull your credit. Your credit score can dictate so much of your life. Having savings gives you the freedom and security to deal with whatever life brings your way – good or bad. Though it’s not all about having a secret stash of cash to deal with the bad news of life (medical bills, car repair, layoff), it can also be about having the cash to seize an exciting opportunity. We don’t know what life is going to throw at us and having a cushion can help you navigate the uncertain times. The financial downturn caused by the pandemic has reminded the whole world of the importance of having an emergency fund. Now’s the perfect time before life gets more hectic with family commitments to buckle down and tackle any loans or credit card balances so you can be debt-free going into your 30’s. It can also quickly overrun your life if you aren’t careful. It may be the reason you were able to earn your degree, and a mortgage may help you one day buy a home. The right budgeting tool is simply the one you’ll stick with long term.ĭebt isn’t all bad. Consider a system like Mint that will connect to your accounts and automatically categorize your spending for you. The good news is that there are lots of apps and online tools that can make the process a breeze. ![]() It’s actually the first step in putting yourself in control of your finances because it means you know where your money goes each month. Take the time now to learn about your money and follow the money moves outlined below to put yourself on a path of lifelong financial success and eventual freedom.īuilding a budget doesn’t have to be overly complicated or time-consuming. The reality is that each decade plays an important role in our future financial health. It’s easy to dismiss it all because well you’re a 20 something, and you’ll have plenty of time to play catch up. That vision didn’t include dealing with student loan debt, taking on a low paying entry-level job, or having to confront that despite spending 4 years in college, you’re still unsure how the world of personal finance actually works. We imagined our college graduation, moving into our first apartment, and launching our new career. Along with that milestone comes new responsibilities and worries that we didn’t picture when our teenage selves dreamed of turning 21. ![]() Reaching your twenties is an exciting milestone for most as it means you’ve officially entered adulthood. ![]()
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