We are in a time when being a millionaire is possible for anyone, especially for young people. The 21st century is the century of creatives, so it is not strange to see how a very young person makes a great fortune from a great idea. However, being creative is not all it takes – it takes both hemispheres of the brain to be successful.
Therefore, and while you find the million dollar idea, you have to take into account certain tips to take care of your finances . Protect your income and secure a future. And so, once you glue it from the ceiling, you just have to enjoy. So now we bring you the 2 most important economic rules that you should follow in your 20s .
2 important financial rules to follow in your 20s
1. Don’t become a slave to credit cards
Before talking about credit cards, we must talk about debts. It may well sound like a scary word, loaded with all this idea of red bills raining down on you and an unkind suit guy who asks you to pay much more than you have … for the whole month, but debts are not always bad . An important part of this advice to take care of your finances implies that you understand that not all of them are bad. For example, student loan debt, to buy a home or car are an excellent opportunity to grow.
However, when we talk about that little square piece of plastic … you have to be careful. Credit cards can certainly be very useful, but it is easy to spend when you think you have a lot of money . One of these misused could ruin your work, social and even family life for years to come.
Having credit card debt as young as 20 should be the last option. You may well use them for emergencies, but remember that everything you buy will be charged approximately 18% interest, which means that you will have to earn 18% to pay for that. And it’s not just about interests. At some point in your adult life you will need a loan from the bank, and that is when they will resort to studying your credit record.
2. Save for your future
This is one of the most important aspects about working from a young age : creating a calm and stable future for when you can no longer work. Various economic studies show that, although today’s youth have the conviction that they will finance their retirement themselves, only 42% of them have started saving.
While there is no reason to be alarmed because you don’t have a dollar saved by the time you are 30, it would be a good idea to find a piggy bank or piggy bank and throw in a few bills. It may seem too early, but the key to a comfortable retirement is undoubtedly preparing ahead of time.
Whether it is contributing a social security, a pension plan, or saving on your own, you must start preparing for a future. You never know what might happen along the way, and if you have an economic emergency, at least you already know that you have a small emergency fund.
When you’re lounging atop a mountain or letting your wrinkles turn golden in the cool beach sunlight, you’ll want to go back in time only to say to your 20-year-old self, “Thank you.”
References
- Loudenback, Tianza. The 2 most important money rules to follow in your 20s, according to a bestselling author who’s written about finance for nearly 3 decades. For Business Insider. [Revised March 2017].
