![]() Is This Missing in Your Plan to Become Debt Free? 4. Ultimately, it’s a smart money move to deal with your debts in your twenties and start your thirties ready to invest in your future. You might think that you’ll make bigger payments when you earn a higher income, but the longer you’re out of school, the more important other opportunities and commitments tend to become, and the harder it is to pay for the past. But the truth is that the money you need to repay your education debts will hold you back from other goals and pursuits. Pay Off Your Debts, Resist Thinking That Debt is Normalīeing in debt has become such a normal way of living that the urgency to pay off education debts, including student loans, credit cards and personal loans, becomes less as time goes by. Start with modest accommodations, good used furnishing and money left over for emergencies. Don’t get carried away charging a lifestyle you can’t afford. If you have an expectation to move out with all the comforts of home, keep in mind that your parents started out with much less than you’ve gotten used to now. It’s a milestone young adults, as well as their parents, look forward to. Take moving out on your own into your first “real” apartment. There’s nothing wrong with “wanting it all,” but “wanting it all right now” is where the problems start. ![]() Don’t Get Carried Away - Wanting It All Right Now Comes At a Price What Would It Take to Save Up a Cool Million? 2. Start small, saving a little from each pay cheque for long-term financial goals increase how much you save as your income goes up. Money saved in your 20’s and 30’s adds up to more by the time you retire, than saving the same amount in your 40’s and 50’s. The sooner you start saving, whether in a Registered Retirement Savings Plan (RRSP) or a Tax-Free Savings Account (TFSA), the longer you can take advantage of compound interest. Compound Interest is Like Financial Magic – Invest & Watch Your ShowĪ young adult starting out with a job that does more than just cover living expenses is in the ideal position to develop a solid savings habit. Here are 9 smart money moves to make in your twenties: 1. This is such a huge advantage when it comes to personal finances and planning ahead financially. When you’re in your 20’s you have time on your side. ![]() Taking steps sooner than later to manage your financial affairs will not only set you up for success later in life, it will help protect your hopes, dreams and goals when life throws you a curveball. The information is out there, free for the taking, if you’re ready for it. And those of you who should have paid a bit more attention than you did, count yourselves fortunate that due to the unprecedented economic times of the past 10 years, a lot more attention is being paid to increasing the financial literacy of Canadians. You’re now standing on the cusp of making some of the smartest money moves of your life. If you’re a 20-something, having paid even a bit of attention to your money and personal finances over the past decade, you likely gained some valuable insights.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |