By Kerry Tobias
Young people generally feel pretty good about life, but once in
a while, they may wonder if they’re making the right financial
moves. Here are some simple (yet effective) financial strategies
for people in their early 20s.
Young people generally feel pretty good about life, but once in a while, they may wonder if they’re making the right financial moves. Here are some simple (yet effective) financial strategies for people in their early 20s.
Pay yourself first
Every time you get paid, put something aside in a savings or investment account. As a general rule, save 10 percent of your income. Even smaller amounts add up over time.
Watch your plastic
Credit cards are an expensive form of debt, and it’s easy to lose control of them. Try to pay your entire credit balance every month, even if it’s a stretch. If you’ve been carrying a balance, buy nothing more on credit until the balance is zero.
Keep a clean
credit record
If you plan to own a home, buy a car, or start a business, you’re going to need squeaky-clean credit. Keep all of your financial obligations current, and never make a financial commitment that you can’t keep. If you fall behind on any obligation, talk to the creditor immediately to make alternative arrangements.
Make sure you
have top-notch
medical coverage
You may not see a doctor even once this year. But if you do need medical care, it could be for something serious and expensive. Anything less than a good major medical policy could ruin you financially.
Watch your expenses
At this point in your career, you may not receive large or frequent pay raises. But you can achieve the same effect by cutting expenses. Shop before you buy. Very similar – and sometimes identical – products are sold at widely varying prices. Wise shopping can be the equivalent of having a good-paying second job.
For assistance with financial strategies suitable for your particular age and situation, give us a call.
