Taking Control of My Financial Future
As I reflect on my 20s, I realize that the lessons my parents taught me about saving money have finally sunk in. Those beanie babies I thought would be worth something someday? Yeah, not so much. But in all seriousness, hitting my late 20s has brought a newfound sense of responsibility and urgency to get my finances in order.
Prioritizing My Financial Future
I’ve started having important conversations with myself about retirement goals, allocating money towards hobbies and travel, and even considering purchasing my own home. It’s a daunting task, but I’ve come to realize that the financial decisions I’ve made in my post-grad years will shape my ability to make these dreams a reality.
Five Key Financial Decisions
I want to share the five best financial decisions I made in my early 20s, including tips that have worked for me over the years to be more confident in my financial future.
Hiring a Financial Planner/Accountant
After seeing friends struggle with debt post-grad, I made the decision to avoid debt at all costs. I hired a financial planner/accountant, which has been instrumental in teaching me how to budget and hold me accountable to that budget. If you can’t afford a professional, LearnVest is a great alternative and cost-effective solution.
Developing Side Hustles
I believe that making more money is key to achieving financial freedom. I’ve developed multiple side hustles that bring in a steady stream of income. Identify your passions and hone in on a marketable skill – it could be blogging, photography, or anything else. For me, my blog has led to opportunities that pay, and I’ve even started offering boudoir photography services to brides.
The “OH SH%T” Fund
I’m not talking about an emergency fund (although that’s important too!). I’m talking about a stash of cash hidden away for unexpected expenses. Life has taught me that cash is king, and you never know when an emergency may strike. Start building your fund by setting aside a small amount each week.
Investing in Insurance
Once you move out of your parents’ house, it’s time to think about insurance beyond just health. Renter’s insurance is one of the best purchases I’ve made. It’s a relatively minimal cost, but it gives me peace of mind knowing that I’m protected in case of theft, flood, or other disasters.
Developing a Financial Filing System
Having a side hustle means you’ll need to keep track of extra income come tax season. A financial filing system has been a game-changer for me. Spend a few minutes each month organizing your paperwork, and you’ll be grateful during tax season. Invest in a file container and label maker, and you’ll be set for under $50.
What financial decisions have you made in your 20s that have worked for you? Share your experience in the comments below!
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