Financial tips for people in 20s | Fusion - WeRIndia

Financial tips for people in 20s

Financial tips for people in 20s

The 20s are the age you are most energetic in. Most people get a job during this period and their careers are rising fast. There’s also the problem of managing bills and finances.

Due to the lack of experience, this is also the age that most people get confused about finances.

Don’t worry, this article will help you plan your 20s better so you will be set for your entire life.

Time to start a retirement account

While it feels great to spend all your money on things you wanted since your teenage, it is not a smart move. This is the time to start planning your retirement. If you start saving bit by bit now, you will have a peaceful time in your old age. If you get offered a pension account by your employer, use it well.

Save at least 15-20 percent of your money

Make a pie chart for the income you get. Save at least 15 percent of it. Invest this money in mutual funds or other instruments. Spread your investments to various risk level assets to maximize profit. In a few years you will find yourself with a lot more money than you think.

Make a list of goals

Anyone with career goals should focus on priorities. This includes short term, midterm, and long term goals. A rough idea about your marriage or children would help you plan well. Depending on what you want to do in life, create a list of steps on how to reach that goal.

Clear your debts

This is the age where you have most energy. Work two jobs if you have to, but make sure you clear all your debts, especially student loans. This should be priority one. Use your income to clear debt off as soon as possible. This reduces the interest you have to pay.

Avoid loans

Just like clearing, also avoid taking new loans. This makes your later life easier.

Avoid buying unwanted stuff

While something might seem attractive, make sure if it’s necessary. Saving money can be a lot more beneficial.

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