As spring approaches and a new pool of twenty-somethings get ready to step into the real world, there is probably some anxiety about future careers, finances and goals. But Sunset Bank has some financial rules that you should follow in your twenties to get your finances on track early. Share these tips with your twenty-something friends today!
1. Make a budget
When you have a new job, you probably have a new salary. That means you need to re-evaluate how you slice up each piece of the pie. Without a budget to keep you on track, you risk overspending on unnecessary items and under-saving for the future.
2. Make a plan for paying back debt
Having debt in your twenties is common. But letting that debt linger (or grow) can set back your finances for years to come. For student loans, set up a plan that helps you pay off debt fast in order to avoid higher interest payments and lower credit scores.
3. Build your emergency fund
You can’t count on insurance alone to cover every problem you encounter. You need to have some liquid savings to be safe. Stash enough money to pay three to six months of expenses. Make contributing 10 percent of each paycheck to your emergency fund a top priority in your budget.
4. Raise your credit score
If you have debt, show creditors that you know how to manage it to build up your credit history and earn a good score. Your credit score is the key to receiving lower rates on credit cards and loans in the future. Pay bills on time and use your cards sparingly to help get that score up.
5. Start retirement savings
This may seem premature since you are just starting your first job, but it is more important than ever to focus on your savings goals early. The sooner you start saving, the better.
If you are in the beginning years of your career, talk to the experts at Sunset Bank. We offer various checking and savings accounts as well as loan solutions to get you off to a good start. Stop by our Waukesha location today!