How to live richer in your twenties

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Day 25: GOBankingRates wants to help you live more richly. For a month, we’ll share daily tips on how you can get there, with tips on budgeting, saving, investing, optimizing your career, and managing your debt, plus tips. financial for every phase of your life. Check back every day during our 31 days of richer life to learn everything you need to know to prepare for financial success and live the richest life possible. Discover day 24: How Debt Keeps You From Living Your Richest Life Read day 23: How to pay off your debt in a manageable way Your 20s are usually the start of your life as a financially independent person. You’re either in college or recently graduated, and this is the decade you get your first real job and start moving up the career ladder. When you think of “living richer” in your twenties, you probably think of driving a luxury car, shopping, or taking a lavish vacation. But the best way to Actually living richer during this phase of your life is to prepare the ground for your future years so that you are well prepared when it is time to buy a home, start a family and, many years later, take your life. retirement. Go back to day 22 of Living richer: How to stop getting into debt once and for all Here’s how experts say to live richer in your 20s.

Develop good financial habits

“Building smart financial habits is essential and can have a big impact throughout your financial life,” said Marcy Keckler, vice president of financial advisory strategy at Ameriprise Financial. “This includes making a commitment to make timely payments on all debt like student emergency loans , so you can build a strong credit rating. It’s also important to learn to live within your means – avoid taking on credit card debt to cover discretionary lifestyle expenses. Discover day 21: Top 3 Debt Management Expert Tips

Set up an emergency fund

Saving in an emergency fund should be a top financial priority for people in their 20s. And day 20: 3 signs you’ve found the job of your dreams “It’s the money you put aside when life throws you an unexpected curve and the dishwasher unexpectedly needs replacing or the car needs major repairs,” said Faisa Stafford, president and CEO of Life Happens, a non-profit organization that educates consumers about the importance of life insurance. “Don’t feel bad if you don’t have that much savings, or none at all – starting when you’re young is the best way to build that safety net.” Day 19 of Living richer: Top 3 Expert Tips for Salary Negotiations “While the rule of thumb is three to six months of spending, every dollar you put aside helps,” she continued. “I would even recommend putting this money in a separate account and continuing to build it up in case you need it during a life transition, like changing jobs, changing apartments, graduating or moving to a new one. city.”

Saving for retirement

Retirement may be decades away, but it’s certainly not too early to start saving for it. Read day 18: How to achieve a better work-life balance “Be sure to contribute to an employer sponsored 401 (k) plan if one is offered,” said Brian Walsh, Jr., senior financial advisor at Walsh & Nicholson Financial Group. “Save now because you will need it in a few years!” ”

Start investing

You can also consider opening an investment account in addition to your retirement account. And Day 17 of Living richer: Top benefits to look for when looking for a new job “The sooner someone can start investing, the better,” Keckler said. “[People in their 20s] have time on their side, and the power of the dialing is a huge plus that goes with it. Cumulation is the ability of an investment to generate income which in turn generates their own income, and can generate much more than the amount you actually invest. Robert R. Johnson, Ph.D., CFA, professor of finance at Heider College of Business, Creighton University, recommends index funds for those new to investing. “People in their 20s should start investing in a low-cost, diversified equity index fund and continue to invest consistently whether the market is rising, falling or sideways,” he said. he declares. Day 26: Join us tomorrow for our Live richer series when we chat how to live richer in your thirties. More from GOBankingTaux Last updated: July 25, 2021

About the Author

Gabrielle joined GOBankingRates in 2017 and brings with her a decade of experience in the journalism industry. Prior to joining the team, she was a reporter for People Magazine and People.com. Her work has also appeared on E! Online, Us Weekly, Patch, Sweety High and Discover Los Angeles, and she was featured on “Good Morning America” ​​as a celebrity news expert.

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