5 Smart Money Moves to Make Before You Hit 30

5 Smart Money Moves to Make 

When it comes to creating financial stability for later in life, the earlier you start the better off you should be. There are numerous money saving techniques that you should consider  before you hit 30, if you want to have the comfortable retirement most people dream of. This includes going through your finances with a fine-toothed comb to figure out what can be cut out of your current expenses, and learning the discipline you will need in order to have enough money set aside. Here are some smart money options that you should consider if your goal is to start your financial planning prior to your 30th birthday.

Pay Off Your Debt

Having debt following you around can hurt you in a number of ways. Initially, it can damage your credit, and this damage can hamper your goals. Depending on the kinds of debt you have and the amounts, this debt can ruin your credit before it has even fully been established. To avoid this, you are going to want to start to monitor your credit report and score so that you know what debts you have and so that you can see the results of the payments first hand. Make sure each of the debts on your credit report are factual, and then start paying them off one-by-one until you have no debt left to your name. The quicker you can do this, the better it is when it comes to how much you can put aside each month, plus it can greatly improve your credit score.

Have an Emergency Cushion

One of the hardest things to plan for is an emergency. Unfortunately, this type of situation happens on a regular basis. It can happen when the appliances break down or when the car stalls out on your way to work.  These emergencies of course happen right when you least expect it and are not financially prepared. If you do have money set aside in your emergency cushion, you can keep going with the natural swing of things and put money back into your account later on. However, if you are not prepared, you will likely incur more debt and end up paying more in the long run. Most financial planners suggest that you have a savings account with anywhere from six months to a year’s salary just in case you lose your job or get injured along the way.

Insure Yourself

Insurance is the last thing on many 20-something’s minds because they think they have a lot of time to worry about getting that type of information in order. The problem is, the older you get before getting insured, the more it will end up costing you and that’s even if you stay perfectly healthy. Plus, there are numerous types of insurance available, some of which can even help you save money. Here are some of the types of insurance you should consider getting as soon as you are working full-time in a career:

• Health insurance-the older you get, the more this will cost
• Disability insurance-this is good to get while young when you are in a safe job, because if the scope of your job changes, this insurance can be more difficult to get
• Life insurance-this can help cover your expenses should you pass away, but it can also help you save money for retirement if planned properly

The sooner you sign up for these types of insurance, the less you will spend. This is because as people age, they are naturally closer to needing the expensive benefits that come with these types of insurance. This is also because, statistically, health declines as people get older, which can make qualifying for these types of insurance much more difficult.

Save Early For Retirement

No matter how old or how young you are, you need to be financially prepared for what life will have in store for you down the line. This includes everyone, no matter how much money they make or how difficult their current situation is. This is part of why planning out your retirement is so crucial. The earlier you start, the less you have to put away each month in order to be able to live without fear once you hit retirement. The higher percentage of interest you earn, the less you will have to put away as well. This means if you start young with a high interest savings plan, you can still live your life minimally affected by the money you would be putting away for retirement. You should also try and have the money placed into your accounts before you receive your pay, as you will be less likely to fret over money that was never in your possession in the first place.

Don’t Get a Degree You Will Not Use

Going to college is important, but it’s also expensive. If you plan to go to school, make sure that when you get out you will be able to find a job in the market you are getting a degree in. It’s very difficult to pay back student loans when you are not making an income that comes close to what you owe each month. The more planning you can do before starting school, the better off your repayment will go once you have your degree in-hand.

Each of these tips can help you get a financial plan in place that can help make the rough spots in life a little more bearable. If you are able to apply these money saving techniques before you hit 30, your financial stability should be ready and waiting for you when you are set to retire. It’s never too early to start planning for the future, so don’t delay.

Joy Mali is a staff writer on The Washington Times and Examiner. Her work is also published on Lifehack, Yahoo and other mainstream sites. Follow her on twitter (@wbider) to discover more about managing personal finances & credit.

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