Financial Choices and Your Twenties
It is essential to realize how important your twenties are when it comes to your financial future. Your twenties are a time in your life when you are focused on building your career and when you can have a lot of fun. It is a common misconception that managing your money wisely means that you can not have any fun now.In fact, managing your money wisely opens the doors for more opportunities to the things that you enjoy the most.
Choices You Make Now Will Have a Lasting Impact
However, it is important to realize how much your lack of money management may cost you in the future. There will come a point in which your money management choices will catch up to you. You have the choice to make that a time positive one or a negative one. By making wise choices now and working towards these goals, you are setting up a secure future for yourself, which will ultimately allow more choices for yourself. Avoiding financial mistakes will make reaching your dreams easier. Small simple choices can add up to either a positive or negative impact on your finances.
The coffee habit can add up to more than $1200 a year, and even more over a decade. The small purchases really do have a big impact on your future.
Wise Money Choices Will Increase Your Opportunities
You may have the desire to travel abroad extensively. By making wise money management choices now, you can open those doors much sooner. Additionally you will not need to go into debt to fulfill these dreams. Your goal may be home ownership or early retirement. Taking control of your money and making wise decisions will open the door for you to achieve your dreams.If you start planning and saving now, you will not need to worry about your finances as much in the future.
Poor Choices Can Limit Your Opportunities
Sadly, I know several people whose poor money management decisions while in their twenties and single have affected them negatively over time. You will literally be paying for these decisions over the next several years. The amount of credit card debt you accumulate now will follow you around while you struggle to pay off the loans. Additionally you may not be able to switch jobs as easily or open up your own business because of the pressures that debt or a lack of savings puts on you.If you have already made these mistakes, you can still correct them and the sooner you start to get out of debt and manage your money, the easier it will be to change your financial picture.
How You Manage Your Money Now Will Impact Your Net Worth
It is also important to realize that the deciding factor in how successful you will be financially speaking (your net worth), does not have a lot to do with how much you make. You can spend as much or more than you make no matter what your salary. Your money is a tool that you control. You can decide how your life will be in the next fifty years. The key is to budget, save regularly, and get out of debt. In fact in order to make your budget work successfully you should set aside some money each month just for fun.
The amount depends on your lifestyle, your priorities and your other obligations. Take the time now to make good financial decisions, so you can enjoy your life now and in the future.
Take the Time to Create a Solid Financial Plan
With a little planning, you should be able to take care of your finances and stop worrying. Now is the time to pursue your dreams. Your budget and a financial plan will make it so that the doors are open to you when you reach the point where you want to buy a home or take the next financial step in your life. Take the steps now so you can do what you want to in the future. The first step is to set your goals, and then create a budget that will allow you to reach them. You can seek help for investing or other questions that you may have.