9 Ways to Set Yourself Up for Financial Success Before Age 25

The sooner you plant and nurture smart money habits, the better prepared you’ll be to weather financial storms that may arrive later in life. Individuals under age 25 who’ve learned to live within their means are often better equipped to shield themselves from the devastating effects of an income loss or other financial emergency. Plus, weeding out bad decisions makes it possible to grow a flourishing financial garden.

Here are nine seeds of money management you should plant early in life to reap a financial harvest down the road.

1. 建立沙巴买球.

Create short-term and long-term 目标s with specific deadlines, then break them down into smaller achievable 目标s. 例如, you might set a short-term target of saving $500 in six months, along with a plan to save 10% for a down payment on a home over five years. Each 目标 can be further broken down by the amount you need to set aside each month or year.

2. 制定并坚持预算.

Set conditions for your finances to thrive by developing a realistic budget. Not only will it provide an overview of your income and expenses, but a monthly review of your take-home pay and spending habits can also ensure you’re on track to meet your financial 目标s. 选择一个 预算编制方法 这样就很容易跟踪你的进度.

3. 建立应急基金.

Financial emergencies can happen at any time, so it’s essential to have savings set aside so you aren’t tempted to use a high-interest-rate loan to cover unexpected costs. Aim to save at least three months of living expenses so you have a financial cushion if something should happen.

4. 优先偿还债务.

If you have student loan or credit card debt, commit to paying it off as soon as possible. The longer you take to pay off debt, the more you could spend in interest charges. Do your best to make more than the minimum required monthly payment.

Consider working overtime or taking a second job to eliminate debt faster. 一旦债务还清, redirect the old debt payment to your emergency fund to build more security for the future.

5. 自动化退休储蓄.

Sign up for auto-enrollment in an employer-sponsored retirement plan. This allows money from your paycheck to be automatically deposited into the plan’s account before you have a chance to spend it. 从少量开始, 比如你收入的1%, and then gradually increase your savings to 15% of your salary as you advance in your career.

6. 开立个人退休帐户(IRA).

If your employer doesn’t offer a retirement plan, you can still save for your golden years. ira are available through financial institutions like the Credit Union of Colorado. These accounts provide an additional way to save for living expenses after you leave the workforce. The earlier you start saving for retirement, the less you need to save overall.

使用 未来价值计算器 to estimate how much an initial deposit plus regular contributions can add up.

7. 建立并保持良好的信用.

沙巴买球, 雇主, and even some landlords review the information in your credit report before deciding to do business with you. 服务,如 益百利提高® let you establish a credit profile without taking on debt. Pay all bills on time and keep credit account balances low to experience the benefits of healthy credit.

8. 购买足够的保险.
 

没有足够的保险, 你可以自付事故赔款, 受伤, 或者财产损失. Selecting the right policy is about more than knowing the difference between a premium and a deductible. 新沙巴体育网 what each policy covers so you’re not met with an unwelcome financial surprise if you need to file an insurance claim.

9. 研究投资.

Take the time to research different investment options, 例如存单(cd), 股票, 和债券. 投资 early and often lets you maximize the power of 复利. Understanding the risks associated with various types of investments could help you select ones that match your comfort level.

Giving your finances proper care before age 25 could enable your money to grow beyond your wildest dreams. Partner with a trusted financial advisor to develop a plan that ensures every dollar you earn works as hard as you do. 安排一次免费的、没有义务的咨询 with an LPL Financial Advisor at the Credit Union of Colorado today!