The future can seem far way, especially when you’re a young professional just starting out. You get your first paycheck and the next thing you know, you’re 30. It’s never too early to start being prepared, so here are a few tips to get on the right track, no matter how old you are.
Develop a habit of saving
Early and often. That’s the key to saving money. It’s always a good idea to have an emergency fund, so start putting a few bucks away each pay period and let that account slowly build itself into a valuable asset. Depending on your age, retirement may be further back in your mind, but it’s never too early to start saving. Take advantage of that company 401(k) program, and if that’s not available, open your own Roth IRA. If you’re not convinced that it’s time to start, read up on compound interest and I think you might just change your mind.
Make a plan to pay off debt
If you have debt, like credit cards, a new car or student loans, you need to do more than just throw money at it every month. Make a plan to pay off that debt as quickly and efficiently as possible. The snowball method is a great way to pay down your debt fast. If credit card debt is a problem for you, think about some ways you can curb those spending habits.
Life is short . . .
Do you have life insurance or a will? You may not think you need life insurance, especially if you’re single and have no kids. But if you die tomorrow, someone you love is going to have to pay funeral expenses. By starting early with life insurance, you’re making sure that you aren’t going to be a burden to your loved ones. A will is important so that your money can go to the right place after you pass. Always be thinking ahead.
. . . play hard.
You only live once. It’s important to think about your financial future, but it’s also important that you enjoy yourself while you’re here. Have fun, spend money on life experiences and that bucket list, but make sure you’re still keeping an eye down the road.