Help! I’m A Twenty-Something With Literally No Idea What I’m Doing With My Money

First of all, calm down. It’s not that uncommon to find yourself thinking very seriously indeed about your finances well into your twenties or beyond. The fact that you’re starting to ask about these things is important in and of itself. The answers to those burning questions aren’t all that difficult, either. In this article, we’re going to look at organization and decisions that are going to help you stay independent for the rest of your life.

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Making sure you have those extra pennies

To start taking the steps you need to really use your money, you’re going to have to start saving. When you hear about saving or starting a budget, you think of penny pinching. You think of all the negative connotations. What you need to think about is the extra money you’ll be getting. You don’t have to skimp on a lifestyle. You just need to start measuring your essential costs and your non-essential. Allow for luxuries, but put a cap on them. Make sure you have that extra money left over. We’ll explain why, now.

 

Set up your fortifications

As you’re undoubtedly aware, life doesn’t always go easy on you. There are bumps in the road willing to give you a hard time and bite a chunk out of your wallet at the same time. That extra money you’re saving should be going, in part, to preparing for those road bumps. For one, you need to set yourself up with an emergency fund that can help you prepare for the risk of employment and other costs. Sites like thesimpledollar.com detail just how useful they can be. Then you need to think about your insurance and what needs to be covered.

 

The future is now

You need to think well beyond the immediate trouble you could get into, as well. We all have futures we want to safeguard just as much. You don’t want to be working well into your retirement age, after all. The sooner you start contributing to that, the better. If you have any family, then you should already be thinking about how to provide for them. Not just by formalizing an inheritance for them. You should be considering steps like burialinsurancpelans.com, too. Otherwise, your legacy for your loved ones might be a list of expenses.

 

Fighting the dragon that is debt

Your future is going to be a lot harder to deal with the longer you have debt hanging over your head. It’s all about evasion and management. Not all debt is bad. Using your credit towards investments is the way you should be using it. Dipping deep into overdrafts and credit cards for luxury and lifestyle purchases, however, is not. Similarly, regardless of what debt you do or don’t have, you need to have a repayment plan set up. The longer you leave it to grow without chipping away at it, the harder it will be in later life. Tackle those debts with the highest and fastest-growing interests first. It might be tempting to get rid of the smaller ones first, but you’ll only be paying more in the long run.

Investment is for everyone

Of course, not all of your money is going to fight the boogeymen that are debts, expenses, and disasters. You should be growing your money, too. Working isn’t the only way you should be making money. Forbes.com and similar sites can help you spot investment opportunities that even newbies can use. You don’t have to hesitate just because you weren’t raised to know investments. It’s not as difficult to manage as you might imagine.

 

Adulting 101

Mostly, getting to a level of savvy financial independence is all about good housekeeping. You need to avoid bad habits like using your parents or siblings like a bank, for one. Then you need to get in control of your money. Organize your financial records, like your tax, insurance, and other records. Make a filing system, electronically and physically. Set up a calendar to help you do those major budgeting and tax tasks each year. Organize it as you would if it was your job. You stand a lot more to gain when you’re being professional for your own monetary future.

With the help of the above tips, we hope that you’re going to have a much more secure financial future. It’s not enough to gather this knowledge, however, you have to use it. You have to start contributing to your future by getting yourself in order now. You have to prepare yourself for potential threats to your finances and stop making the mistakes that it’s so easy to make in younger life. We wish you all the best with your future financial endeavors.


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