The Age Old Question: When are you truly an adult?
Well for some, adulthood hits them right when they graduate high school and they either get a job, go to college, or do a little bit of both. For others, adulthood hits when they graduate college and start the job search. Maybe in between all of that, some got married – now that is some serious adulthood.
Whenever it hits you, it seems as though you’re in this weird phase of life when you finally have freedom and at the same time you wish you were a kid again. You’re making money at your job, but you still expect your parents to help you out a little.
So what should every twenty-something be thinking about financially when branching out beyond parents and childhood home?
First, when marking your financial independence – the key word for rest of your life is SAVE. Without this word constantly running through your mind, you won’t be able to pay off that student loan quickly or ever set your financial mind at ease. Saving is key for any age group, but the earlier you start saving – the better.
Second, look into a credit union membership. Many twenty-somethings may not even know how a credit union works. Credit union loan rates, especially for twenty-somethings, are usually substantially cheaper than they would be through a car dealership or a bank.
Third, spend below your income. This may seem obvious, but saying it is a lot easier than doing it. By spending below your income you can pay off credit card debt you may have or even put a percentage of your income into your 401 (k) plan. And yes, it’s never too early to think about your retirement savings.
Lastly, know how to manage your money. Without this vital skill, it could cause you to go deeper into debt or even file bankruptcy.
Hope this helps you twenty-somethings out there!