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Financial Decisions You’ll Need To Make in Your 20s

Entering your 20s means you'll quickly need to learn how to navigate the world of personal finances, much of which you probably didn't learn in college or high school courses.

Without any previous lessons on finances, it can be challenging to know where to start. Follow this guide as we outline the financial decisions you'll need to make in your 20s.

Setting a Budget

The first step to being a fiscally responsible young adult is setting a budget. Your budget will determine many future financial decisions, from where you can live to what splurges you can make. Look at the expenses you currently owe every month and your projected income to determine how much you should be spending on bills, daily expenses, etc.

Tackling Debt

Getting rid of your debt as early as possible is a critical step for newly independent 20-year-olds. However, some may not be able to get rid of debt as soon as they hope. Once again, look at your budget, then decide if you'd like to put more toward tackling debt now or pay your loans as they come.

Getting Coverage

While you may be able to hold onto your parents' insurance until 26, you'll have to choose your own plans sooner or later. From health insurance to renter's and car insurance, you shouldn't skip an opportunity to cover yourself in the case of an accident. Find a provider and plan you're comfortable with, and get your coverage as soon as possible.

Saving for a Rainy Day

Navigating how to save is another critical financial decision you'll have to make in your 20s. Living paycheck to paycheck is not a sustainable course of action. Even putting a small portion of your wages into a savings account can make a big difference—especially if an emergency you didn't prepare for occurs.

Starting To Invest

Investing is a scary topic for young adults, but it's a great way to build wealth. Starting to invest as a young adult will set you up for success on your long-term financial plan. However, be sure to conduct research before jumping into the market to decide when, where, and how much you'd like to invest.

Your 20s are an optimal time to learn and grow. One area of life you'll undoubtedly learn a lot about is managing finances. Use this guide to help you get started on the path to becoming a fiscally responsible adult.

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Everything You Need To Know About This One Insurance Trick That Could Save You Hundreds

Insurance bills suck.

They're so necessary, but when your premiums come due, it can almost feel like you're just throwing money down the drain.

And since you choose your own insurance, there's always the nagging feeling that maybe you chose the wrong one.

Is everyone paying this much for insurance?! Sometimes, yea: Americans are overpaying by the billions.

So we found a way to figure out if you're one of those Americans: Gabi.

It's an online portal that compiles all the rates from the major (and not-so-major!) auto and home insurance companies, so you can see if there's something out there more affordable than your current plan.

Here's everything you need to know about Gabi:

What exactly is Gabi?

It's like an online insurance marketplace. They work with more than 40 insurance companies in all 50 states to identify the lowest rate for you.

You answer some basic questions and upload your current insurance (it took us about 2 minutes) and then they'll email you a quote of what you should be paying and where you can land that rate. They also help you buy it. Gabi will always show you the lowest rate, and there's no obligation to switch.

Is it difficult?

Nope - it's ridiculously easy. Simply fill out the form, get a quote, and then they'll help you switch providers. Gabi walks you through the entire process, either online or over the phone.

What kind of information do I need to give them?

They ask for your current carrier and policy, along with basics like your address and social security number to double check that everything is correct.

Do they do all types of insurance?

Currently, they do home, auto, renters, umbrella, and landlord insurance.

Is it really free?

Yes! They don't make money off of you, they make money off of the insurance companies. So you get to reap the rewards.

...Is it legit?

Yep - they don't share or save any of your data. It's all super secure and there are so many incredible customer reviews. People like Gabi for how much they save, and how easy it is to switch carriers.

Okay, but will this really save me money?

They claim that on average, users save $825 a year, but some save less and some save way more.

Or, people discover that they're already on the cheapest plan! Honestly, that's amazing - that means you can rest easy knowing the grass isn't greener on the other side.

Insurance companies profit off you by making insurance seem really complicated so you don't look too deeply into your rates.

Gabi is trying to change this.

With full transparency, you'll see which company actually has the cheapest rates, and those who just advertise that they do. Try Gabi today and see how much you can save.

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Everything You Need To Know About Life Insurance

When I was younger, I used to be the shirtless headbanger at rock concerts – so I was not the type of person who'd ever thought about getting life insurance.

Things change, people age and put on shirts, and I got to a point where I had a wife and a family, and it was something I really needed to think about.

The whole process of buying life insurance was overwhelming at first, but I dove into research and found an excellent experience with Bestow.

Bestow provided life insurance for me in under 5 minutes and started at $5 a month.

I looked at sooo many companies first, though. If you know at the back of your mind that life insurance is something you need, keep reading.

Here are the 5 things you need to learn about life insurance before choosing a plan.

1. Term Vs. Whole

The first thing I kept seeing pop up was the decision between term or whole life insurance.

Term Life Insurance provides death benefits. It's purchased for a set time period, such as 5, 10, or 20 years.

If you pass while the policy is in effect, your beneficiary will receive the full amount you have set aside. It needs to be renewed once it expires, or it no longer applies. Bestow offers term life insurance for 2 year, 10 year, or 20 year terms.

Whole Life Insurance provides death benefits as well as a cash percentage that accumulates during the lifetime of the policy. It covers you for life and typically has higher monthly premiums.

2. What You'll Be Asked

Both types of policies typically require a health exam. However, it is possible to get a policy without one (very helpful if you don't like taking unnecessary blood tests!). Bestow's term plans don't require a blood test – you'll be required to submit your medical records and answer questions about your lifestyle, like your tobacco use.

3. Who Can't Get Life Insurance

If you're a rock climber or scuba diver, you're probably going to have some trouble. You'll also encounter difficulty or high premiums if you smoke or have certain chronic illnesses, like HIV.

4. The Cost

In general, whole life is more expensive. Bestow's premium was the least expensive starting point I'd ever seen – at $5 a month. Typically, a healthy younger person may see premiums of around $25 a month.

Also, big tip: if you're younger, it makes sense to get a policy now because your premiums will be lower. When you reach a certain age, it can become too expensive or even impossible to get life insurance.

5. Online Vs. Over the Phone

I was expecting the sign-up process to be super detailed and include many phone transfers between different people. Seriously, I was shocked when, after submitting my online application with Bestow, there was only a short wait followed by an approval! I didn't need to speak with a human being unless I wanted to (Gen X, here). Many companies will require phone calls and overwhelming paperwork, but only a few like Bestow are completely online and have the option to use the chat feature.

After all my research, I was confident Bestow was a good choice for me at this time in my life. Now that I'm signed up, I never have to think about it. This has been a huge weight off my shoulders that I didn't even know was there, and I'm so grateful.

Learn more about Bestow today and protect your loved ones no matter what happens.

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Millennials Need to Consider Long Term Care Insurance

The phrase "long term care" refers to the services that a person with a chronic illness or disability (typically due to age) may need on a daily basis over an extended period of time. It's designed to help the person perform everyday activities that they may not be able to do on their own anymore.

Long term care is not an unusual subject for millennials. In fact, a study conducted by AARP reported that of the current estimated 40 million caregivers in the US, 1 in 4 are millennials. Maybe this is why more and more are expressing their concerns over the future of long term care.


The six common everyday activities addressed by long term care include the independent ability to perform the following tasks:

  • Eating
  • Getting Dressed
  • Walking or transferring
  • Bathing
  • Toileting
  • Continence

Long term care insurance policies are designed to cover the costs of the expenses that occur from long term care needs. It is not limited to just medical expenses. In most instances, the benefits are triggered by the inability to perform at least two to three of the everyday activities. Once the benefits kick in, they can cover the following:

  • Nursing homes
  • Assisted living
  • Adult daycare services
  • Home care (grooming, bathing, cleaning)
  • Home modification (Ramps, grab bars)

There are a slew of options and ways to customize long term care policies, so the cost depends on the age at which you take the policy out, your current health, the length of time you want your coverage to last, the elimination period (number of days you choose to be disabled before benefits kick in) so there is much you should consider when choosing your distinct policy's terms. Before purchasing any policy, here are some things to consider:

  1. How much will I need? Sadly, we aren't fortune tellers, so it's hard to say whether or not you will need a policy that will cover you for a longer or shorter duration of time, but it may be smart to look into your family health history if you can.
  2. How do you think you will receive possible long term care? If you don't plan on ever having children, long term care insurance may be vital for you. On the other hand, someone who hopes that their children will care for them may not want to purchase as much coverage if they believe they will get care from a family member.
  3. How much money do you plan on having later in life? Again, another silly sounding question. We all want to be millionaires in retirement. Depending on what type of career you hold, or plan on having, you may not need long term care if you plan on being in the pool of the wealthiest Americans.

Genworth has a great tool you can use to see an estimate of what you would pay for long term care insurance. However, the youngest age available on this handy calculator is forty. This is most likely because most Americans don't purchase long term care insurance before that age, although it is possible to get it beforehand.

Even though long term care insurance premiums are lower the younger you purchase it, it really isn't necessary to purchase much before the age of forty, so buying it too early can unnecessarily cost you more. You also shouldn't wait too long if you do decide to purchase a policy. According to the Genworth premium calculator, the same policy that would cost a forty year old $341 annually would cost a fifty year old $491 and a sixty year old $627!

It's also important to keep in mind that employer health insurance does not cover long term care needs, and Medicare insurance will only cover nursing home stays up to 100 days. That's with a daily copayment of $164.50 after the 20th day. Medicare's home care services are also very limited in what they will cover. According to the study conducted by the Associated Press-NORC Center of Public Affairs research, only 1 in 10 of those aged 18-39 are confident that Social Security, Medicare, and Medicaid will maintain their level of benefits when it comes time for them to need these programs.

Just looking at the current national median monthly out of pocket costs of long term care is enough to scare anyone. The current monthly costs are immense, but looking at the forecasted costs in 50 years is enough to make me hope for a quick and young death (kidding, obviously)!

national average long term care costs


As many millennials have other financial priorities to worry about, you should be financially well off before considering any long term care insurance. Check in with a trusted financial advisor and discuss your needs and options with them first.

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