Being in your 20’s is exciting as you learn to practice independence while you explore career opportunities. Financial security and building good credit may seem boring at this point. However, it’s crucial to note that the earlier you begin, the better you can build a solid future.
Supporting yourself financially is a big part of independence. If you’re financially stable, you’ll be able to enjoy the finer things in life like traveling, owning a home, or starting a family and a business.
SEE ALSO: 13 Tips on How to Retire Before 30
Before you turn 30, here are some financial goals you should check off your list:
Student loans, credit cards, and auto debts – you should be able to pay them all. If you focus on paying off your debt, interest will not keep on increasing. You will feel great when you make the last payment. List the debts in the order of the total amount of debt starting with the smallest total first. You can start paying off smallest debts first and then proceed to the next ones.
When you have a plan, it’s easier to save money and pay off debt. Sit down and write down all of your earnings and expenses. Money should be set aside for rent, bills, food, entertainment, paying off debts and savings.
These sudden splurges need to stop if you want to save money. They are nothing but a waste of money. Before you even buy something, ask yourself: Do I need this? Why? Will I pay for this with my allowance or savings? Hold your urge. Come back again tomorrow and see if you still want it.
Write down your plan of changing your job and advancing your career. This will help you achieve them and get motivated to work on your goals. You need to have a time limit to achieve these goals.
Get rid of one luxury you would normally buy every month. Track your spending and see if there’s money that is wasted. Cut out one luxury, and save the money instead.
Unpaid bills will leave you with bad credit. These can pile up and even be harder to pay in the end. You can set-up automatic payment so you never miss one.
If you have monthly savings, you will have more to cover emergency needs. You will feel less stressful if you have something in case of worst-case scenarios. You can put your savings in a high-yield account to benefit you as you save.
Once you’ve paid off all your debt, you can start saving for your home. It may take a long time, but sooner you start, sooner you’ll be able to get on that property ladder.
You can increase your savings by investing your money. You can seek help from trained people who can guide you when making investment decisions.
Retirement is not something you need to prepare on the last few months. You need to save something for your retirement by setting aside a small amount of money each month. Save 5% of your salary and slowly raise it to 20%.
SEE ALSO: 11 Tips for Succcesful Career Planning
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