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Sasha Jacob – 6 Smart Financial Moves to Make in Your 20’s

If you’ve just hit your 20’s, chances are you’re already financially independent. You might have also become more financially aware by learning from personal experience or from observing your parents. But just when you think you’re ready to face greater decisions with your Money, you end up making the wrong move.

Your 20’s is considered a crucial stage of your life. Sasha Jacob, a renowned financial advisor and CEO of Jacob Capital Management Inc., says the choices you make ultimately impacts other aspects of your life in the future. So it’s only reasonable to make well-informed choices, especially if you’re working on a financial goal.

Time is also by your side, so you should never worry about any looming deadline. Managing your finances the moment you hit your 20’s or landed your first job will definitely be an advantage compared to working on it later in life. It also protects your hopes, dreams, and goals when any problem pops up.

Sasha Jacob on financial things you should do in your 20’s

1. Interests work like magic.

Investing can take you a long way once you start at an early age.  The sooner you start with it, the more it grows as you get older. The money you saved in your early adulthood adds up until you retire. If you start at 40 or 50, you won’t have much time to build a solid fund until you retire.

You don’t have to set your entire paycheck aside for it. Start small by saving a little from each paycheck. You should also consider increasing that allotment as your income increases.

2. Don’t get carried away by your wants.

There’s nothing wrong with being ambitious and wanting to have a lot of things. However, there’s a difference between “wanting it all” and “wanting it all now.” Moving to your first apartment is already a big milestone not just to you but to your parents.

No, it will not be as comfortable as your old home, but give it some. Your parents might have a less the cozy first apartment as you, but over time, they’ve managed to buy a bigger, better house. Don’t immediately charge into a lifestyle you know you can’t afford. One of the best ways to convince yourself that you still don’t have enough money on the bank is by living below your means in a humble apartment.

3. Finish paying off your debts.

Having debts even while employed is not a good sign. However, debts have become so normal that some people prefer paying them off later in life. According to Sasha Jacob on LinkedIn, your debts are holding you back from achieving your goals.

If you have bigger problems like a student loan, you might think you need to get a higher paying job first so you can pay them off completely. However, it doesn’t matter how much you make, as long as you prioritize your debts. The longer they go unpaid, the greater the interest gets. Deal with your debt while in your 20’s so you can work on your long-term goals quicker.

4. Live below your means.

First off, you need to determine what your needs are. Make a realistic spending plan, track your expenses to get accurate details about your spending habits, and adjust your budget to the results.

Always be reminded of the fact that you’re saving for a long or short-term goal and you need to develop a positive money habit. Once you notice that you’re following your budget and you’re not spending more than you earn, then you’re already living below your means.

5. Build a good credit rating.

At some point in your life, a good credit rating will come in handy. It can be when you’re applying for an insurance or loan. Make sure to use your credit wisely and conservatively. How will you do it?

Ensure that your credit card has a low limit and paid fully when the bill comes, a cell phone on contract should be paid accordingly, and own a modest car with regular payments made on time.

Money is meant to be spent, so living a little is also a smart money move you should make. Sometimes, people in this stage of life is so focused on achieving their goals that they forget to live outside that mindset. Sasha Jacob Capital Management Inc says there’s definitely nothing wrong with spending on the things you want. But keep in mind the golden rule, don’t let your choices negatively impact your financial well-being.



This post first appeared on Sasha Jacob – Jacob Capital Management Inc, please read the originial post: here

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