When most of our parents were in their 20s, they were having us, buying houses, and working on their 401ks. Flash-forward a generation and now the 20s are considered a development phase. Even if you are figuring out what you're doing with your life, avoiding financial pitfalls can get you where you want to be much faster.
From managing your spending to paying all of your bills, here are the eight financial habits you need to form in your 20s.
1. Swiping your credit card like there is no tomorrow.
Plastic feels good in your hand and since you don't physically feel the money coming out of your wallet, it is easy to spend money fast. Avoid sinking into a debt hole by paying off your credit card purchases as soon as possible. The really expensive night out or the beautiful Italian leather shoes? Avoid using your card for impulse purchases and if you don't have the cash of fun purchases, then don't buy it just yet.
2. Defaulting on your student loans.
Hopefully, you're not drowning in college debt. Easiest way to mange your loans is by paying it regularly and not being late. You don't want your interest to snowball and interest fees add up quickly. If you're having a hard time paying the loans, look into refinancing your loans or a different payment plan.
3. Not paying your bills on time.
Pay your bills on time. There may be months were it's not going to happen but bills and necessary expenses come first. Then everything else.
4. Forgetting to create a retirement fund.
Oh, I'm not retiring for another forty years. "I'll worry about it later" is an easy attitude to have in your 20s, but preparing now can create an easy transition in the future.
5. Calling the parents for money.
Everyone needs a little help sometimes and it can be hard to make ends meet when you're on an entry-level salary. However, running to your parents every time you need help can create a bad habit. Figure out how to solve your problems so you can be equipped the bigger problems.
6. Not understanding the concept of a budget.
Uncontrolled spending money is one of the biggest problems when it comes to financial issues. Get a manageable budget for each month. Your budget can grew as your debt decreases and income increases.
7. Financial plan? What is that?
Once you get a budget down, you need a financial plan that includes long term saving, spending and investment goals. Put a little away every month or every paycheck. It's much easier to create a savings fund little by little that all at once in your 30s
8. Skipping insurance, since you're young and think you're invincible.
If you don't get sick as often, it's easy to skip insurance. But accidents happen and accidents can be expensive. Having insurance can help avoid significant debt. That's what insurance is for. While you're at it, get renter's insurance. It will cover fires, stolen items and cover replacement costs for things.
Airbnb offers an affordable option for people looking to be more comfortable as they travel.
However, there are downsides to staying in a host's home rather than a hotel. Whereas hotels are designed for constant streams of visitors and often have furniture built to last, at an Airbnb, you may be staying on old or cheap furniture that a host is using in order to maximize their profits.
And while most reputable hotels will have regular room inspections from staff to check for any wear and tear, Airbnb damage disputes are oftentimes he said, she said situations. If you are in an Airbnb and something breaks, there are a few steps you should take in order to ensure that you are not on the hook for damages out of your control.
If you're keeping tabs on the art and tech worlds, you've probably been hearing whispers about "NFTs" for the past month. Just over the past week they've entered the mainstream lexicon.
Twitter founder Jack Dorsey made the news for selling his first ever tweet. The app has been teasing paid subscription models and newsletter-like features, but tweets for sale is "the next frontier."
just setting up my twttr— jack (@jack)1142974214.0
The 2006 tweet went up for auction as an NFT, and the current bid is $2.5 Million. But what does it mean to own that? Why would anyone want to? And what even is an NFT?
Long gone are the days when the majority of Americans dreamed about owning a home with a white picket fence.
The traditional American Dream may be on its deathbed, but that doesn't mean a core component of the vision can't survive. It simply takes a diverse perspective. People can still believe they can attain their own vision of success in society with hard work, knowledge, and risk-taking. Investing in today's American Dream may literally mean investing money in our modern economy, starting with our infrastructure.
Real estate investing in particular is a lucrative method that can boost income and secure a better financial future for many. There's always risk involved, but the payoffs can far outweigh the uncertainty. Selecting solid financial investments is about confidence and competence. If you're looking for some advice on this kind of investment, here are a few savvy tips for new real estate investors.
Stick To a Specific Strategy or Niche
Real estate is a challenging sphere of the business world, one that requires several key skills: groundwork knowledge, networking, perseverance, and organization. True knowledge of the real estate market will come with time and experience, but it's a smart idea to select one area of the market and stick to it. This is the best way to attain in-depth familiarity with your specific niche.
First, choose a geographical area close by and then a niche strategy within it, such as house flips, rental rehabs, or residential or commercial properties. By doing so, you can become aware of current inner working conditions in the market and you'll have a better idea of how these trends may change in the future.
Be Vigilant About Viable Financing Options
While it takes money to make money, you don't have to use all your own money. A common misconception about real estate investing is that you must be wealthy to start off. This isn't straight fact, however. A majority of people can test the waters of real estate investing without a lot of initial cash in their pocket.
Aside from traditional financing options from banks and institutions, private lending options can be worthy solutions. Hard money lenders are popular, reasonable choices, and they tend to have fewer qualification requirements upfront. However, be sure to strategically choose a hard money lender to find the best possible fit.
Master the Art of Finding Good Deals
There may be hundreds of thousands of available properties for sale on the current market, but the bulk of them will never amount to the final money-making result you desire. Another great tip for new real estate investors is to use good math to estimate profit. Taking risks is part of the process, but you have the ability to analyze properties and use networking sources to find the greatest deal. You can't win every deal, but you can steadily work towards a thriving financial future.