Take the steps now to build a solid future for yourself and your family. Follow our six tips to help you successfully manage your finances over the coming years. And remember, it’s possible to enjoy your twenties while still planning for your future. Break that habit now. Stop using your credit cards, even for emergencies. Set up a good emergency fund instead. This will prevent you from having to pay off large amounts of debt, and waste money paying interest. If you start contributing to your 401(k) when you’re young, your money will have longer to grow. This means you can contribute a smaller monthly amount, but still end up with just as much money—if not more—than someone who contributed a lot each month, but started saving later in life. Your financial plan should include everything from buying a home to retirement. As you get married and have children, you will need to adjust the plan. Do not put off creating a financial plan just because you are single. You still need to have specific savings and retirement goals that you are working toward. Don’t worry if you still have student loans. You can buy a home and pay your student loans at the same time, as long as your budget accounts for it. If you are working to pay off debt, your emergency fund may be smaller, perhaps $1,000. But as you pay off debt, you’ll continue to add to that fund, until you have 6 months of living expenses saved. You can put your emergency fund in a money market savings account that offers slightly higher interest rates. Your budget gives you the ability to decide how you want to spend your money. It helps you to track your spending and can prevent you from overspending or relying on your credit cards. It takes time and work, but if you have a workable budget that you follow each month, you can be confident that you are handling your finances responsibly. And who doesn’t want that? Updated by Rachel Morgan Cautero.
