Ten financial commandments for 20-somethings
What you do in your '20s can have a huge impact on the remainder of your life, on many fronts. But your financial decisions are the ones that will come home to roost. Kiplinger put together a collection of 10 financial commandments for your 20's that provides an excellent go-to guide for making good decisions.
The 10 financial commandments for your 20's:
- Plan ahead.
- Live within your means.
- Make saving a habit.
- Pay off your credit cards.
- Start investing.
- Establish credit.
- Have a marketable skill.
- Cut the financial umbilical cord.
- Marry wisely.
- Have some Fun.
Thanks to my frugality and parents, I've already been doing many of these, but I know too many people who are only following commandment number 10, Have some fun, which is setting them up for a lifetime of playing catch up. Don't get me wrong; having fun, doing things and rewarding yourself for hard work is absolutely necessary. Just don't go into debt doing it.
As Kiplinger suggests, getting in the habit of saving young can make a huge difference in how much money you have when you are in your golden years. To get started, check out WalletPop's recent coverage on how to automate your savings and retirement in just minutes.
Additionally, gaining a marketable skill while you are young and building on it is another great way to grow your wealth throughout life. Thanks to technology and your company's human resources department, you can get additional training on the cheap.
In all honesty, most of these steps should be common sense.But because financial education has taken a backseat in our schools and become a taboo topic at our dinner tables, many people my age have no idea why these things are so important. If you're already following these commandments, why not try and get your friends on board. Even if they only pick up a few habits, you'll have a support group to keep you on track and friends who can afford to come with you when you're having fun