Financial commandments for the 20-somethings – Tips to secure your financial future
Way back in the year 2008, people in the US and throughout the world were familiar with the term ‘Recession’ and ‘sub-prime mortgage crisis’. There were reporters from famous companies that asked the financial experts to share some worthy financial advice for the 20-somethings during that time. Back then, the young generation found it tough to land up with some well-paid jobs and pay back their credit card and student loan obligations. However, it is really sad to note that whether it was the time during Recession or now, the Gen-Y is still struggling with their soaring liabilities.
Okay, all the twenty-somethings, it’s time to have a serious talk about your finances. It’s high time that you get realistic about the ways to deal with the situation and think about ways of securing your financial future. How many of you hate to think of money or investing your dollars or doing something about your low balance in your account? Well, if student loan, credit card debt and a sluggish job market is making things tough for you and is being an obstacle to your personal and financial growth, there’s help for you. The concerns of this article will deal with the financial tips that the 20-somethings need to follow in order to secure their future.
Fiscal commandments for the young adults
When you’re an young adult, managing your money for the first time can be indeed overwhelming, due to the daily expenses, big-ticket costs, health care and housing, heavy debts and long term financial goals, including your distant retirement costs. The sooner you start planning and saving for your future, the better you can find yourself while you reach your 40s. John Deyeso, a financial planner in New York City says that building habits in your early 20s is very important for long term success. Here are some commandments for reining in your finances.
- Incorporate a marketable skill: Before you simply start worrying about your dollars, you clearly need to earn some. Don’t think in terms of your job; think in terms of your career. You will not probably love your first job and this will also not be your last job. Hence you should always try to make the best out of it. The sooner you can start off with a job; you can start saving enough money. Also try to learn the basic skills of Excel, PowerPoint, Microsoft Office so that you don’t have to fall behind others in corporate areas.
- Craft a frugal budget: You might have just shifted from your parent’s home to your new home in order to stay alone while attending college, but that doesn’t give you the permission to waste your dollars as you wish to. If you’re eager to lead a debt-free future, you have to ensure following a budget. A frugal budget is rather the key to success. Frugality doesn’t deal with being a cheapskate, but it rather helps you spend your dollars on things that you actually need. Also try to make a perfect distinction between your needs and your wants so that you don’t keep taking care about your wants rather than your needs.
- Make a realistic debt repayment plan: Debt is a harsh reality for majority of the 20-somethings. But when you let the debt linger or grow, this can push you towards an indebted life where you will find yourself pay huge amounts of interest rate that will in turn lower your credit score. When it comes to dealing with student loans, make sure you have a suitable repayment plan in place and consider the programs introduced by Obama to repay your educational debt. Apart from your student loans, just ensure repaying your credit card debt, even if that means getting help from the national debt consolidation firms to ease off the repayment plans.
- Get enough insurance: For the young adults, this is one of the most overlooked areas of their life. As they have loads to pay off in the form of debt and loads to save for their luxuries, paying the insurance companies for getting covered for a loss that may or may not happen in the near future, is something that seems like a waste of their dollars. But with the increase in the number of accidents and health hazards, it is best to get yourself insured so that you don’t have to look for money when you fall sick or face an unfortunate accident.
Hence, if you’re a 20-something, looking for expert financial advice, you may follow the above mentioned financial advice. Always start planning for your future as soon as possible so that you don’t have to lead an indebted life running behind the financial debt help companies. Also start contributing for your retirement.