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3 Financial Goals For 20 Year Olds

28 August 2015 No Comment

canstockphoto23132942Making money is about time as much as effort. In fact, if you have a lot of both to spend, a lot of time will get you farther than a lot of effort. The problem is, people have been known to waste time. It’s not the fault of most of us. We’re born without knowledge. It takes time to figure out how the world works, much less develop a personal financial trajectory. Still, financial well-being tends to be a lot easier to achieve for people who start early. As bad habits progress and set in, they’ve a lot more difficult to eradicate and correct.

That’s why people in their 20’s (and teens, if they’re aware of stuff like this) should start saving, spending, and investing intentionally. There are lots of ways to do this well, but we’re just going to cover three here. As a 20-something, if you start today, you’ll be reaping the benefits for the rest of your life.

1. Short, Medium, and Long Term Investments. Investing is a multi-faceted process, and it can pay off in a variety of ways. Conventional retirement investment is the most conservative type: the most likely to succeed. But it takes a long time. That doesn’t mean you shouldn’t do it, it just means you should start early and practice other forms of investment in the meantime. Index mutual funds and ETFS are a good example of how to do long term investment right. For the medium term, buying a home seems to serve real people the best. By owning your own house, you’ll be saving up wealth in what is known as equity. Equity is the amount of your house that you’ve paid off so far, that which you own outright. If you sold the house, you could have that much cash. For the short term, spread betting UK seems to be the solution of many. It’s day trades, which resolve in minutes or hours, based on the value behaviors of currencies and financial assets, as well as how well you can predict their behaviors. People who excel at spread betting learn a lot about how the world works, and they’re able to apply insight to their speculations, earning large dividends quickly.

 2. Save. Getting rid of debt can be considered a form of saving, because it is saving you payments that you would otherwise have to make. Once your debt is eliminated, start saving up for an emergency fund, which will be able to carry you through tough times that might come along at some point.

 3. Spending. This is the easiest point to explain, but the hardest to enact. You’ve got to spend less than you earn. A lot less. The money you make over and above your expenditures is what you’ll save and invest with. This, in turn, will allow you to be secure and free to make choices in the future. If you always spend everything you own, your options will disappear once you can no longer make money like you can today.

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