Managing money after you graduate college is a stressful thing. Most twenty year olds do not know how to balance a budget much less handle loan payments or credit card bills.
Here are 3 tips to help you manage your money well in your twenties:
1: Ensure You Don’t Spend Too Much
Credit cards will prevent you from determining how much money you’re spending in comparison to how much you earn. Instead, take a hard look at how much you are spending and learn to save from a young age. There are a number of apps such as Mint, You Need A Budget and LearnVest to help document your spendings.
2: Save as much as possible
People don’t think about tomorrow because they’re so caught up with today. For starters, you should save at least three to four months of emergency savings in another savings account so that you can withdraw it when you need to. Also, start putting away money to a retirement account from 25 instead of waiting until you are 35 years old.
3: Get a grip on your taxes
Taxes will remain complicated throughout your Life. It’s best that you begin to handle it as well as possible from your twenties. Two options include a Health Savings or a Flexible Savings Account that helps you save money tax-free among so much more. If you’re studying, you are eligible for tax deductions. Take time to look at the list of tax deductions at the IRS site.