5 Things You Must Do in Your 20s to Protect Your Financial Future
Most people think of their 20s as a time of exploration and fun, but not necessarily a time to get serious about finances. While it’s true that when you are in your 20s you often have many more decades to get your financial future together, you will set yourself up for a stronger financial future if you start early. If you are still in college or trying to start your career, you probably can’t save much, but anything will help. There are so many articles out now about why people wait too long to start saving and what happens when you don’t save enough or start early (hint: the result is bad). So if you are still in your 20s and you are able to, start prioritizing your savings now. Here are five ways you can do this.
1. Make goals
Even if you are still in college or your first job pays so low that you really need all of your money to pay for your bills, you can still set goals. Determine how much you need each month for your bills, how much you want to have for fun, and how much you can save. Determine when you plan to be able to increase your savings, and how much you need to save in order to have the lifestyle you want. If possible, set aside even a little bit of your income now and save it for the future. You should make short-term goals (for example, paying off small student loan debt) and long-term goals (paying off a mortgage.) You should also prioritize your goals: If you have to choose between saving for a fancy car and paying off debt, make sure you are making the right decision for your own circumstances.
If possible, you should also start investment savings as well, but make it a priority to focus on your emergency fund first, in case you lose your job or a large unexpected expense arises.