Money Tips for 20 Something
Experience is the best teacher. But hey, isn’t it better to learn from other people’s mistakes than walk in the murky water yourself?
Being young means having too little experience, but it does not mean you can’t be wise. We gathered here some tips from the experts and the experienced for the 20 something.
Develop a skill you can earn money from.
You go to school, choose a specialization/profession, graduate and land your first job. A few months later, you realize that you’re in the wrong place. You do not love your job. You have to drag yourself to the office every day. Don’t worry, it won’t be your last job. But nevertheless, try to make the best of it. Learn as much as you can. Learn some marketable skills that will create you better job opportunities in the future.
Create a budget
As soon as you receive your first pay, figure out how to divide it. Without a clear budget in place, you will end up spending all your money on food, new clothes, new gadgets, big tickets and so on.
Start thinking about your retirement
It is probably too early to think about retirement when you just got your first job, but if you are planning to retire early or lead a comfortable life after your 60s, now is the best time to prepare. The earlier you start, the more money you can stash. So, sock away at 7% of your monthly income to your retirement savings.
Avoid using credit card
The attractive thing about credit card is that it makes spending so easy. It lures people into the idea of going cashless while at same time slowly sinking them down into inescapable debt.
So, if you don’t have one yet, better avoid it all together. But if you are looking to build a credit record, better make it a good one. Use your credit card sparingly and pay religiously if ever you have decided to use it.
Create an emergency fund.
Theft, joblessness, medical problems, and accidents – anything can happen. Prepare for the inevitable by stashing money into an account you can easily access. The experts advise that an emergency that an emergency fund should be able to support you for three to nine months.