Whether it’s finding affordable term life insurance or a good rate on your mortgage, planning for the future can be stressful. Especially for young adults, finding a smart start to their financial lives can seem confusing and impossible. That’s why having a solid plan and achievable goals in mind can help you to find the right path for your money.
Just like you don’t get up and run a marathon one morning, you won’t wake up with $1 million magically sitting in your bank account. It takes daily practice and determination to grow your savings account. The best way to focus on keeping money in your pocket is to start using a budget to monitor your purchases. This way you can how you spend your income and ensure your money is going to smart places.
If you carry any debt around with you, focus on eliminating this first. Paying off your debts can take time and discipline, but removing that stress from your financial life can be more beneficial than you realize. Once you do get out of debt, be sure to set up systems that will keep you from being buried in it again.
Don’t forget about your savings account! Stashing bits and pieces of your paycheck away can help you to build a nice emergency fund in the event you lose your job or get injured and can’t work. You don’t have to put huge portions in this account at once; whatever you can spare is better than nothing and it will add up fast.
Make sure that some of the saving you do is in a retirement fund or life insurance policy with a return on investment. This means you’ll have income even after you retire. Finally, don’t be afraid to invest money (just remember to diversify your investments).