5 Personal Finance Milestones to Achieve While in Your 20s
It might be a safe bet to think that every 20-something is always at war with himself about some of his/her big life moments especially after graduating from college. Then you have to be faced with the issue of finding a decent, well-paying job, move into your own place, handle debts, then get another job, get married, buy a house, maybe even have a kid, and life starts.
And one thing you might have realized which is common with all these situations is that they all need money. And we are not talking about some petty cash; these moments and steps in life all need you to have some serious cash in your pocket without which you will only be ‘wishing’ you could do any of these things. You can call these moments and stages in your life major planning ‘opportunities.’
Adult things; responsibilities and stuff like that will begin to fall down on you, and it will be up to you to get anything done. Otherwise, everything will stay stagnant until the day you decide to make a move. Here are five simple advisory tips that you can try out as well.
1. Start saving for retirement immediately
Many studies have found that many people usually end up delaying to save for their retirement and end up getting retired without actually saving a dime. Others end up saving something minor which can’t push you through all the years that you will be retired. But this is usually a big mistake. If you start saving while you are still young, you have a lot of time to grow your money and watch it build into something that can push you for many more years even after you finally decide to retire. This also means that you may not have to set aside some large amount to save for your retirement in the future.
2. Set up an emergency fund
You will realize that the young adults don’t usually find themselves to be any less inclined to store cash for emergencies compared to the adults, which is a good thing. But you will also realize that a significant number of young people still haven’t taken to setting up savings accounts for emergencies. Saving money for emergencies is an important step in every working person’s life as it puts you in a situation where you can handle any emergency situation that befalls you without having too many financial frustrations added to the mix.
3. Pay off your credit cards
From the point, you graduate and get lucky enough to land yourself a nice decent and well-paying job, you should make paying off your credit cards your first priority, if possible. Credit card debts usually have very high-interest rates attached to them, which, if left to add up, can end up adding to your total credit card loans and adding to your financial situations which makes it wise to pay them off as soon as you can.
4. Keep an eye out for credit
This is also the best time to keep on top of your credit card and student loan repayments which will both give your credit score a significant boost. It is also advisable that you regularly check your credit reports and ensure that none of your previous bills are still dinging your creditworthiness. Remember that your credit score matters a lot and is what your creditors will use to determine whether you can qualify for a www.lendgreen.com loan or not and the interest rates to impose on the loan they offer you too.
5. Make longer-term goals
At the age of 20-something, you are still pretty young and have your whole life ahead of you. And this is also the best time you can decide to start making some long-term plans and goals for your life and future. Start saving for a house, for example, and other stuff that you feel you will need in the future like a car, marriage, etc.