Here are 20 of the best money decisions that will put you years ahead in your 20s:
1. Avoid consumer debt
Credit card debt is the enemy of wealth.
Simply put, the more debt you have the less you can invest.
If you have credit card debt, use the debt snowball to get it paid off ASAP
Credit card debt is the enemy of wealth.
Simply put, the more debt you have the less you can invest.
If you have credit card debt, use the debt snowball to get it paid off ASAP
2. Start investing now
If you are in your 20s and have a job, open a Roth IRA and start investing in index funds or a target date fund.
Simply maxing out a Roth each year will be enough to have you at least 1 million at retirement.
If you are in your 20s and have a job, open a Roth IRA and start investing in index funds or a target date fund.
Simply maxing out a Roth each year will be enough to have you at least 1 million at retirement.
3. Keep a budget
It's impossible to know exactly how much you are spending without a clear budget.
Keep it simple.
Income - Expenses
Whatever's left is extra for investing or spending
If you don't have a surplus, time to cut back somewhere
It's impossible to know exactly how much you are spending without a clear budget.
Keep it simple.
Income - Expenses
Whatever's left is extra for investing or spending
If you don't have a surplus, time to cut back somewhere
4. Invest to the match in your retirement
If your employer offers a matching contribution in your retirement, take advantage immediately.
For example, if your employer matches at 8% after you meet the contribution limit, they will contribute a certain amount
Free money.
If your employer offers a matching contribution in your retirement, take advantage immediately.
For example, if your employer matches at 8% after you meet the contribution limit, they will contribute a certain amount
Free money.
5. Have an emergency fund
Life happens.
The best way to combat those unforeseen things is with cash in the bank
This will help ensure that you don't use credit cards or other forms of debt.
3 to 6 months of expenses is recommended
Life happens.
The best way to combat those unforeseen things is with cash in the bank
This will help ensure that you don't use credit cards or other forms of debt.
3 to 6 months of expenses is recommended
6. Get term insurance
Life insurance is a must if you have a family or people depending on your income.
It's all about replacing your income in the event of your death.
Term insurance is cheaper and a 20-year policy is enough to get you to the point where you can self insure
Life insurance is a must if you have a family or people depending on your income.
It's all about replacing your income in the event of your death.
Term insurance is cheaper and a 20-year policy is enough to get you to the point where you can self insure
7. Marry the right person
This is honestly the most important item on the list.
If you are married to someone that is not aligned with your goals or dreams, you will have a hard time building any meaningful wealth.
Talk about money early and often.
This is honestly the most important item on the list.
If you are married to someone that is not aligned with your goals or dreams, you will have a hard time building any meaningful wealth.
Talk about money early and often.
8. Increase income
At the end of the day, you can only cut so much from your budget.
Sometimes you just have to make more money to reach your goals
- Apply for that promotion
- Start an eBay store
- Drive for Uber
- Rent out your car
Leverage any skills you may have
At the end of the day, you can only cut so much from your budget.
Sometimes you just have to make more money to reach your goals
- Apply for that promotion
- Start an eBay store
- Drive for Uber
- Rent out your car
Leverage any skills you may have
9. Write out your money goals
Its good to have short, medium and long-term goals
Examples:
Short: Saving for a car
Medium: Buying a house
Long: Starting a business
Whatever they may be, write them down.
Keeping them in mind will help you stay on track
Its good to have short, medium and long-term goals
Examples:
Short: Saving for a car
Medium: Buying a house
Long: Starting a business
Whatever they may be, write them down.
Keeping them in mind will help you stay on track
10. Learn to be ok with less
When you buy fewer things, you have more money. Simple
By being thankful for the things that you already have in your life, you will feel less likely to go and buy something new.
This is very personal so take time to reflect on this.
When you buy fewer things, you have more money. Simple
By being thankful for the things that you already have in your life, you will feel less likely to go and buy something new.
This is very personal so take time to reflect on this.
11. Get disability insurance
51 million adults in the US do not have disability insurance.
This is especially disturbing considering that you are more likely to become disabled on the job than die.
Don't overlook a simple disability policy
51 million adults in the US do not have disability insurance.
This is especially disturbing considering that you are more likely to become disabled on the job than die.
Don't overlook a simple disability policy
12. Automate as much as possible
When you automate your finances, you bring stability to your money.
- Automate your bills
- Automate your retirement contributions
- Automate your investments
Automation never forgets
Meanwhile, you can go on and live life
When you automate your finances, you bring stability to your money.
- Automate your bills
- Automate your retirement contributions
- Automate your investments
Automation never forgets
Meanwhile, you can go on and live life
13. Learn the power of giving
Giving a portion of your income each month helps keep things in perspective.
We give 10% to our church but you can give to charity or another worthy cause that you are passionate about.
Just give what you can.
I promise you'll feel good about it
Giving a portion of your income each month helps keep things in perspective.
We give 10% to our church but you can give to charity or another worthy cause that you are passionate about.
Just give what you can.
I promise you'll feel good about it
14. Prioritize your health
What good is all of this wealth-building if your health sucks?
You want to be around to see your children's children enjoying the fruits of your labor right?
Prioritize healthy eating and exercise early in life.
Make it a habit
What good is all of this wealth-building if your health sucks?
You want to be around to see your children's children enjoying the fruits of your labor right?
Prioritize healthy eating and exercise early in life.
Make it a habit
15. Take advantage of an HSA
If you have a high deductible health plan, a Health Savings Account can be a wealth hack.
A triple tax advantage makes this one of the best wealth-building vehicles out there.
I wrote about them here:
If you have a high deductible health plan, a Health Savings Account can be a wealth hack.
A triple tax advantage makes this one of the best wealth-building vehicles out there.
I wrote about them here:
16. Don't forget old 401ks as you change jobs
You are likely to change jobs several times throughout your life
As you move around, don't forget to move those retirement assets with you.
Try to auto-transfer if you can and never take a lump sum
You are likely to change jobs several times throughout your life
As you move around, don't forget to move those retirement assets with you.
Try to auto-transfer if you can and never take a lump sum
17. Live close to family
Having a support network close by can be helpful especially if you have kids
If you have a good relationship with your family and have them around, take advantage if you can.
My mom watching our kids has saved us $1000s on daycare
Having a support network close by can be helpful especially if you have kids
If you have a good relationship with your family and have them around, take advantage if you can.
My mom watching our kids has saved us $1000s on daycare
18. Be ok with driving that old car a little longer
The average new car payment is $667
That is more than enough to max out a Roth over a year
If you have a paid-off car, drive it as long as possible and invest the difference
The average new car payment is $667
That is more than enough to max out a Roth over a year
If you have a paid-off car, drive it as long as possible and invest the difference
19. Avoid financial news
All news is designed to scare you, especially financial news.
I used to watch it and thought I was smart for doing so.
I was only making myself question my investment decisions and more likely to YOLO into the newest thing mentioned.
Best to avoid.
All news is designed to scare you, especially financial news.
I used to watch it and thought I was smart for doing so.
I was only making myself question my investment decisions and more likely to YOLO into the newest thing mentioned.
Best to avoid.
20. Track your net worth
Net worth is assets - liabilities
Whatever is left is your net worth
Start a Google sheet and start tracking each month.
It's best to start this habit and keep track over the years.
Net worth is assets - liabilities
Whatever is left is your net worth
Start a Google sheet and start tracking each month.
It's best to start this habit and keep track over the years.
I hope you enjoyed this thread
If you did please retweet it and shoot me a follow
If you did please retweet it and shoot me a follow
I appreciate you and I'll see you at the next one.
Cheers my friend π€
- Jrod
Cheers my friend π€
- Jrod
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