If you think that you have a forever before being financially smart, think again!
It takes years of discipline to be able to make smart choices when it comes to handling your money. Usually, thinking about finances and handling them with responsibility is not something we like to do in our 20s. However, while your 20s are definitely the time to spend your money and cherish, it is also the time when you need to start being smart about your savings and investments. The sooner you get into keeping a healthy financial habit, the stronger and more secure your finances get in your later years. Here are a few financial lessons that everyone should master before they hit their 30s.
Do Not Spend Your Whole Paycheck
Always remember to save at least 60 percent of your paycheck every month while you can spend away the rest for your necessities and miscellaneous stuff. The reason you should not throw away a whole month’s salary is because the security of having a consistent income throughout the year is not going to last you a lifetime. To be able to sustain yourself after your retirement, you need to have savings and your 20s are the best time to get on board that train.
Have Your Financial Goals Figured Out
Be clear as well as real about your financial goals. You are in your 20s and you must have certain goals you want to achieve by say when you are 50. For example, you might want to have a house or a car of your own. You might even want to pay off loans and clear your debts by the time you reach a certain age. All such financial goals, however, minor or major they might be, need to be carefully planned and sorted out. Once you do that before you turn 30, you can take control of your actions sooner and reach your goals in time.
Have A Strong Emergency Fund
Setting up an emergency fund that is strong and secure is important if you do not want to spend your entire life in credit card debts. Having an emergency fund will stop you from dipping your hands in your saving during emergency situations. Make sure to set aside 5 percent of your paycheck every month into the emergency fund so that you don’t find yourself financially inadequate during your time of emergencies.
