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Money Tips For 20 Somethings

Updated on May 9, 2012

Use Money Like An Adult

Welcome to your 20's, that magical time where school ends and life begins. Enjoy the world of going over your bills and trying to stabilize the present while preparing for the future. You might have a few dollars in your pocket, you will soon learn that this doesn't mean you can just go the movies, or finally buy the new video game the day it comes out.

Pay Off Student Loans

The best thing you can do is to make a budget to deal with bills that you accrued while in school. Even if you don't have student loan debt, or have not gone to school yet, there are still other debts to get taken care of quickly. Among debts to get in control now include:

-Credit Card Debts

-Student Loan Debts

-Car Loans

If you cannot get your debts under control, or make a good budget, there might be consequences in the future. You need a good credit score and credit history in order to proceed in life.

Think About The Future

Do you want kids, or a home? Maybe you want to drive a fancy car, or be a business owner. This is the time to start making those first steps to making life easier on yourself. What are some steps worth taking now?

Save A Little Each Paycheck

You need a lot of money for a downpayment to a house. It will take 10-20 percent of the value of the home to get a loan. This means at least 10,000 dollars, or maybe as much as 50,000 dollars. Planning now can get you in the right direction. Also consider that you need an emergency fund, and you need money for rent, food and other necessities.

Invest

Put some money into stocks and bonds. This will allow your money to grow so that you can have money for retirement, or just to live your life financially independent. Consider investing in gold and silver as well. Putting money toward the future now will make it easier to make smart financial decisions later.

Get Health Insurance

If your employer offers it, or you can afford your own plan, get it! Medical costs are often the reason why people have to go bankrupt. Even with care it can be tough, so give yourself whatever advantage you can.

What Are Your Immediate Goals

Do you want kids? What about getting married? These things will impact your financial situation as well as your tax situation and where your money is going. Having a kid will cost you at least 250,000 dollars by the time you factor in college, inflation and other upward pressures on the cost of raising a kid. Marriages require a lot of planning as well, so you have to understand if that is an event that can be pulled off.

By thinking about what you want to do in the immediate future, it will give you another level of planning that you can use to plan for how your money needs to be used. It will guide saving levels as well as how you spend your money. Not having a plan with your money is like walking around with your eyes closed, or crossing a busy freeway. Not smart!

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