Women's Guide To Managing Money At Every Age

When you're a twentysomething, long-term financial planning is often not a high priority. Think of it like this: if you take home $1,000 in income, but spend half on a house, you only have about $33 a day to pay for all the rest of your expenses - not to mention saving for upcoming purchases or investments. You know that it's time to shift your focus from the party life and start building a sound financial life.

One important rule of thumb: the younger you are when you buy a life insurance policy, the less you'll pay. I didn't know much about managing my money and made bad moves, like paying only the minimum balance due on my credit cards and letting the interest compound.

Next, make sure you have repaid as much of your ‘bad debts' as possible, reduce your credit card limits, make sure you can document a pattern of regular savings, and have all income and expense documents at hand. For near-term goals, opt for recurring deposit, liquid funds, fixed deposit or short-term debt funds.

This makes your savings efforts even easier if you want Finance mindset to reach a million dollars before you hit retirement. The most important aspects of a good financial plan are built upon the foundations of very strong money habits that are learned from an early age. If you have been on track with your savings and investments you will have your mortgage paid off (or close to it).

Consider making the minimum payments and putting any extra money in a savings account. But as you enter your 30s and start earning more, you can start setting—and meeting —important money goals. Phil has a passion educating others, and has given thousands of people the confidence to start investing and retire comfortably.

If you do not have such a scheme available to you, you can still start your own retirement fund to save for your future. If you have some savings to spare, pop them into your superannuation fund. Twenty-four percent of all Americans have no emergency savings set aside to cover home repairs, medical bills, temporary unemployment, or any number of unforeseen (and pricey) expenses.