A financial planner and successful entrepreneur explains how you should manage your money in your 20s, 30s, and 40s
Tedx Talks
When it comes to managing your money, there are certain rules to live by no matter what your age or life status might be.
Things like having zero credit card debt, building an emergency fund and saving for retirement are always going to be critical components of a solid financial foundation.
That said, there are certain items worth zeroing in on and additional goals to consider depending on whether you’re in your 20s, 30s or 40s. Let’s break down some of the best money goals and management tips by decade.
If you're in your 20s …
Know your numbers
Before you can truly tackle any financial to dos, you need to know what you’re starting with. First things first, check your credit score (CreditKarma.com is a wonderful, free resource to do this).
Then, calculate your total net worth — tally up your assets in all of your bank accounts, savings accounts, investment vehicles and subtract any debts you might have (i.e., student loans or credit card debt). And finally, make sure you understand exactly how much you make each month after-taxes and how much money you’re shelling out across all of your various expenses.
Reuters/ Shannon Stapleton
Lay the groundwork
Twenty-somethings have two powerful things working in their favor: 1. They tend to have fewer responsibilities and 2. They have time on their side.
This puts them in the absolute best position to lay the groundwork for a solid financial future.
It means the following: Start to put money into an emergency savings fund (ideally at least three months' worth of take-home pay), contribute to a retirement account (if your employer offers a match, try to contribute enough to maximize it), and focus on paying off any credit card debt.
If you're in your 30s …
A recent study with LearnVest clients showed that financial confidence takes a dip when you’re in your thirties (it actually decreases by decade). To help make sure you continue to feel optimistic about your financial future, there are a few things to keep in mind:
See the rest of the story at Business Insider