(ThyBlackMan.com) They say that time is money and it is true. If you are in your 20s now and you start making the most of your money, think about how much it would be worth when you reach retirement! But, if you are in your early 20s, it is likely that this is the first time you will have to manage your money yourself, and that can be quite scary. On the other hand, you are part of the tech generation and you can use that to your advantage. One of the ways to do that is by opening up a digital IRA.
The Digital IRA and Other Financial Wisdoms for 20 Year Olds
1. Make sure you have goals in mind. Write them down and work out how much you would need to save to reach those goals.
2. Make a budget and don’t deviate from it. Make sure you also budget for life’s little luxuries, or you will soon find it impossible to stick to what you’ve allocated to yourself.
3. Start building an emergency fund. Putting money away in a digital IRA is a really good idea, as are various other savings plans. However, you cannot make withdrawals from those accounts for many years. Instead, therefore, you should consider also building an emergency fund for all life’s little eventualities.
4. Know your gross income and put 10% of that aside in savings that you can’t touch – like in a digital IRA.
5. Make sure that you find out what kind of financial services your credit union or bank offers you and take advantage of those.
6. Don’t forget to have insurance in place. Life insurance, health, car, and disability insurance are the most important ones at your age.
7. Think about savvy investments. There are traditional investments like stocks, bonds, and options, but you can also consider alternative investments. The digital IRA is a prime example of this, enabling you to invest in cryptocurrencies. Other types of investments include precious metals and real estate, for instance. The only things the IRS does not allow as a retirement investment are life insurance and collectibles.
8. Keep your retirement in mind. When you’re in your 20s, retirement seems like a lifetime away, and it is. But if you start preparing for it now, you will be able to really enjoy your retirement as well.
9. Have a good credit history. Don’t borrow more than you can afford and make sure you pay all your bills on time.
10. Keep working on goals. Set some short term ones that you tick off and replace with new ones, but don’t be afraid to set goals for 20 or 30 years into the future either.
11. Pay in cash as much as you can. Having to physically withdraw money, and leaving your card at home after you have done this, is a really good way to make sure you don’t overspend.
12. Keep your skills up to date. There is no such thing as a job for life anymore so you need to make sure that you stay relevant. Investing in a digital IRA is one way to do that, because it means you build financial skills (it is always a self-directed IRA) while learning about cryptocurrencies at the same time.
Staff Writer; Aaron Shaw
