You want to make sure that you’re making the right money choices now, so when you reach your 30’s and 40’s you will be happier, and richer.
Do you remember when you were younger and your summer vacations seemed to last forever? The good old days, now time seems to just fly by. Which means that you want to make sure that you’re making the right money choices now, so when you reach your 30’s and 40’s you will be happier, and richer.
Prepare for unexpected emergencies
If you don’t have an emergency account you are seriously missing out. When you don’t have an emergency account it’s easy to end up swiping your credit card, and nobody wants to willingly add more debt to his or her pile. To avoid this whole situation altogether, be sure to set yourself up with an emergency account. Your account should free (or a low payment) also be sure to check if there are any fees associated with having the account. How much you put in this account depends on how much you’re comfortable with. Start with saving $1,000 then work your way to 3 months of bills, and then 6 months.
Some accounts charge you if you don’t have a certain amount of money inside them. I have Capital One, I love it because I can create sub-accounts for free and separate my money into mini buckets. There are a ton of great online banks you can choose from. Check out bankrate.com for a full list!
Learning to say no, putting your future first
In order to live richer, you must learn to say yes to yourself and your future. You can’t always use your money to bail out your friends and your family. I know you have a big heart, and you want to help everyone however if every time your family or friend has an emergency and you bail them out you aren’t teaching them to be responsible with their money. You are teaching them to rely on you when a problem arises. Saying yes to everyone else, is really saying no to yourself.
Please sign up for your jobs 401k
I remember taking a class in college and the teacher instructed us not to worry about signing up for our 401k right away because it’s for when you get older. The teacher was wrong. You should never wait to sign up. Repeat after me “I will not miss out on free money.” If your company offers a 401k and they also match your amount and you aren’t signed up you should sign up first thing tomorrow morning. Run to HR if you have to. You must start to think about your retirement today because earlier you start putting money aside the more money you will have in the long run.
Make sure to create a money plan
When you get paid you should know exactly where your money is going. Which is why a budget is extremely helpful. Don’t think of a budget as something that will restrict you from living your life. When to think this way, it will be harder for you to stick to your budget. Think of it as something that’s going to guide you closer to your life goals. I want you to think of your budget as a promotion. If you stick with it will promote you to where you want to be.
Create a side hustle
Who doesn’t want to make more money, start thinking about ways that you can earn extra money. You can use this extra money to save, pay off debt, invest, or however you would like. I’m sure you have many skills and talents; starts listening to what people are complimenting you on. “Take inventory of your existing skills would be a good place to start. And even just like your resume, right, like any job you’ve ever had by definition somebody thought that was a skill worth paying you for. “ Nick Loper
Pay off your debt
Don’t wait to pay off your debt. If you feel like your debt isn’t moving it’s probably because you’re only paying the minimum balance. You want to put as much money towards your debt as possible. I like to pay off the balance with the smallest amount first because this way I create a small win for myself. Which debt you pay off first, doesn’t really matter each payment is helping you move towards financial freedom.
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