No matter where you are in life, the goal of financial freedom and success is something we all strive for. Unfortunately, this is something way too many people struggle to find success with, and may ultimately find themselves in debt instead. All too often, this happens as a result of not having the right tools, resources or information to provide them with the appropriate guidance or direction. However, this in itself is simply not enough of an excuse to stay in the ‘status quo’ and not live your life the way you want, or continually work towards that ultimate goal of financial freedom.
To help with this process, today we are going to look at some of the key points of focus when it comes to financial planning while you are still in your 20s. This is ideal for anyone who is looking to become a millionaire, or simply pay off any existing debt that might have come from credit cards or college loans. For most people in their 20s, it’s going to be some of the most exciting times of their lives. You still get to have fun, are likely attending college and having less responsibilities than if you were in your 30s or 40s. But don’t forget… you’re only going to be in your early 20s for a short period of time, and this is the crucial period in your life where you need to start taking more responsibility and planning for your future.
Are You Financially Ready for the Future?
At the same time, financial planning doesn’t have to be focused on just what your upcoming dreams and plans are either. Much like insurance, financial planning also proves to be extremely useful for those unexpected events and in times when you are in need. PSCUnow.com has actually come out with their own list of such events, which we’ve broken down in detail for you below.
- Birth/Adoption of a child
Whether it’s planned or unexpected, the addition of a new family member can greatly impact your immediate finances. When the time comes, it’s important to make sure you are financially set for not only the moment at hand but also for the future of your latest family member as well.
- Going to College
Even if you plan on getting a paid-in-full scholarship, college can still be very expensive. Now think about the costs of attending college without a scholarship at all. Preparing for your finances at an early age can greatly improve your chances of finding financial freedom, while also having enough funds to put you through college and not leaving you with a big pile of debt by the time you come out.
- Home Ownership
One of the most common American Dreams is to have a home of your own. Sure, renting an apartment is great, but owning a home is a whole different story. Knowing how to manage your finances and always making sure there is enough money in the bank to pay for that upcoming mortgage payment is the difference between owning a home and potentially losing it to a bank or lender.
- Natural Disasters or Unexpected Events
No matter how great things might be going for you right now, there is no telling what tomorrow may bring. This could be anything from injury, death, family illness to a natural disaster that could quickly change everything overnight. When such an event happens, will you be financially ready?
With all of this now in mind, you should have a better understanding of why it’s so important to have some form of financial planning in place. Now it’s easy enough to simply give you a list and tell you to go on with your day, but there is actually some work and effort that needs to go into this. The good news is that the earlier you prepare your finances and start to plan out your future, the much more likely you are to find finance success.
12 Financial Planning Tips to Help You Get Started
Thanks to the power of the internet, it’s now easier than ever to get the information and resources you need for pretty much anything. This also applies to financial planning and how to better manage your finances. Another benefit is that you get to read up on the latest financial planning advice from experts around the world, while also never needing to leave the comfort of your own home.
A perfect example of this can be seen in this recent article in Forbes on titled “12 Expert Financial Planning Tips For 2017”, where they laid out the following twelve tips. Be sure to check out the article for the full breakdown on each.
- Maximize Your Retirement Savings.
- Reallocate Your Investments.
- Don’t Forget Your Estate Plan.
- Invest For The Long Term.
- Capital Ownership Is Key.
- Manage Your Debt To Stay Out Of Debt.
- Talk With Loved Ones About Money.
- Review Insurance Coverages.
- Do Something For Your Kids.
- Education Re-Financing.
- Maximize Flexible Spending Accounts.
- Develop A Retirement Risk Management Strategy.
The key takeaway here is, no matter where you currently are in life, it’s never too early to start planning for your financial future. The sooner you take control over your finances and start to manage any accruing debt or negative credit you might have, the easier it will be for you to find financial success and freedom in the coming years.