Passing 30: Money Habits to Build Wealth and Retire Wisely
Most of us don’t even think about retirement and pensions during our twenties. And, with today’s young people now facing up to 10 years of being in debt, it’s clear to see that taking saving money seriously at a young age is something very few people actually do.
However, regardless of the common lack of diligence towards saving money amongst young people, many are under false illusions that they’ll automatically retire with substantial funds despite not being proactive and registering with a pension scheme, or even saving themselves at all. Then, when the big ‘30’ hits, many are stuck in a routine of bad money habits without any plan for the future. So, if you’re in this position and need some quick money-saving tips ready for retirement, keep reading!
Buy a home
It’s extremely common for those in their twenties to live with relatives or rent. However, if you’re in a position where you can save to buy a house, it’s definitely a useful step to take in the long-run for one simple reason: mortgage payments are often considerably lower than rent.
The primary hurdle that may stand in your way with this is the deposit. So, if you analyze your funds and find that renting is the best option for you financially, then stick with it. An important part of saving money and retiring wisely is making the best financial decisions for your current situation. Getting on the property ladder won’t suit everyone but, if you’re able to do it, you should.
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Pay off your debts
Mounting up debt on credit cards is something almost everyone in their twenties has experienced. But, to give yourself the best opportunity of saving and having greater control over your money as you get older, pay off any credit cards debts and increasing your credit score is a great place to start. Even if you’re suffering from bad credit, there are plenty of legitimate bad credit loans out there to help you get back on your feet.
And in future, if you’re ever tempted to bill a luxury item on your credit card, only do this if you know you can afford it. Budgeting is key especially when it comes to credit, and will ensure you don’t stretch yourself too far and leave you in a financially difficult situation.
Get into the habit of saving
In our twenties, most of us live each day as it comes and tend not to think about the future too much. This often means spending our money without taking the time to save and be sensible for the long-run.
Even if just a mere $50 per month, getting into the habit of at least saving something will ensure greater stability surrounding your money as time goes on. And, if you find yourself able to put a little more away, don’t be tempted to mindlessly spend it!
We all need to think about our financial futures at some point and the earlier this is done, the better. Saving money and being sensible may have the reputation of being ‘boring’ in your twenties, but wouldn’t you rather have a solid financial backing and lots of money saved by the time you’re ready to retire?
Sofia Hunt shares her personal finance articles around the web on money related as well as lifestyle blogs.
