{"id":358307,"date":"2020-03-19T12:29:59","date_gmt":"2020-03-19T18:29:59","guid":{"rendered":"https:\/\/www.creditrepair.com\/blog\/?p=358307"},"modified":"2020-08-04T10:56:58","modified_gmt":"2020-08-04T16:56:58","slug":"money-management-advice-for-your-20s","status":"publish","type":"post","link":"https:\/\/www.creditrepair.com\/blog\/finance\/money-management-advice-for-your-20s\/","title":{"rendered":"Money Management Advice for Your 20’s"},"content":{"rendered":"\n
\"A<\/figure>\n\n\n\n

Hey,\nwelcome to your 20\u2019s! That sweet spot in life when you\u2019ve just moved out of\nyour parent\u2019s house, graduated from college, maybe started your first serious\njob and you\u2019re looking forward to being completely independent. <\/p>\n\n\n\n

Unfortunately,\nyou\u2019ve now got equally grown-up bills to pay\u2014like rent, cellphone bills, car\npayments, insurance and student loans. After paying those things off on your\nentry-level salary, the last thing you want to do is put aside more of your\nVegas-weekend money into a savings account. <\/p>\n\n\n\n

Yeah,\nit\u2019s rough. But the good news is that it gets better, and the better news is\nthat if you\u2019re smart with your money now, it\u2019ll get better a lot faster. <\/p>\n\n\n\n

We sat down with a financial advisor, Daniel Grimm<\/a>, to discuss the smartest money moves we could make now in our 20\u2019s (and also the most common mistakes to avoid). <\/p>\n\n\n\n

What should you do between graduating college and finding a job?<\/h2>\n\n\n\n

\u201cOne of the most important things to start doing is\u2014whether you\u2019re in your career or you\u2019re still working at a part-time or a full-time job through college\u2014is set in your mind that after your expenses are paid you\u2019re going to start saving 20 percent to 25 percent of your paycheck and putting it toward savings and retirement.<\/a>\u201d <\/p>\n\n\n\n

\"Start<\/figure>\n\n\n\n

\u201cSavings and retirement are two of the top stresses that Americans carry, but it is also two of the top things that Americans procrastinate until they need it. Retirement is only going to be enjoyable for you if you take the time to prepare for it. If you can start it now, you\u2019re going to be a lot less stressed going forward.\u201d <\/p>\n\n\n\n

Good resources for financial information?<\/strong><\/h2>\n\n\n\n

 Market Watch<\/a> – <\/strong>\u201cPersonal finance to retirement to economy and politics to investing. It even talks about cryptocurrencies. It\u2019s not the only one I use to do my own research and studying, but it covers a good base and it\u2019s got good general knowledge in there about really anything and everything to do with retirement and investing.\u201d <\/p>\n\n\n\n

What\u2019s best to start now: a 401K or a Roth IRA?<\/strong><\/h2>\n\n\n\n

\u201cIt depends. Most employers are going to offer a 401K that they match in<\/a>. If that\u2019s the case, that\u2019s definitely the first place you want to start. If they match three percent and you put in your three percent, you\u2019ve essentially doubled your initial investment with what they\u2019re putting in there. I look at that as free money.\u201d <\/p>\n\n\n\n

\u201cEspecially\nin your 20\u2019s, you\u2019re going to be in a lower tax bracket, you\u2019re not going to have\nas large of a tax liability\u2014only contribute what your employer is willing to\nmatch and put the rest of it into a Roth IRA.\u201d <\/p>\n\n\n\n

\u201cBecause when it does come time to take money out of there, you\u2019ve already been taxed on it…when it comes out of your Roth, you\u2019re not paying any capital gains or any of that\u2014it\u2019s tax-free.\u201d <\/p>\n\n\n\n

Is it better to wait to buy a house or buy one immediately?<\/strong><\/h2>\n\n\n\n

\u201cThe best way to gain large amounts of equity is through the purchase of a home\u2014but what good is that going to do you if you foreclose on your home? You\u2019ve got to be able to keep up with it and you don\u2019t want to sacrifice what comes later in life and really hurt yourself. It\u2019s not just a mortgage payment\u2014there are all the other unplanned expenses that come with a home.<\/a>\u201d<\/p>\n\n\n\n

\u201cPeople who are saying ‘get a home as soon as you can’\u2014they\u2019re not wrong <\/em>but make sure that you have all your bases covered before you jump into it.\u201d<\/p>\n\n\n\n

What are common financial mistakes people in their 20’s make?<\/strong><\/h2>\n\n\n\n

\u201cThe\nunnecessary amount of debt\u2014because it happens fast. If you don\u2019t have the money\nto buy it, you don\u2019t buy it. At least I hope everyone knows when you borrow\nmoney you have to pay it back, but I don\u2019t think there\u2019s education around\nknowing the consequences [of debt]\u2014knowing how it works, knowing what happens\nif you don\u2019t pay it.\u201d<\/p>\n\n\n\n

How do you save responsibly but also enjoy your\n20\u2019s?<\/strong><\/h2>\n\n\n\n

\u201cIf\nyou\u2019re not paying yourself back, you\u2019re not going to be enjoying life. You do\nneed to enjoy your life\u2014it can\u2019t always be work, money, paying bills\u2014all the\nstuff that nobody really wants to be doing, but it\u2019s the way the game is played.\u201d<\/p>\n\n\n\n

\u201cIf you\u2019re paying your expenses, you\u2019re putting your 20 percent to 25 percent away, in my mind (it\u2019s not a one-size-fits-all) you\u2019re pretty free to do whatever you want with what\u2019s remaining. And it\u2019s not to say you can\u2019t touch the 20 percent to 25 percent, you just have to be reasonable with it.\u201d <\/p>\n\n\n\n

\u201cIf you\u2019re just putting money aside for those things when they do happen it\u2019s not: ‘well I just spent $100 and I don\u2019t get paid until next Friday, I don\u2019t have money left and I have to find out how to make it last.’\u201d <\/p>\n\n\n\n

What should you do now before you enter your 30\u2019s?<\/strong><\/h2>\n\n\n\n

\u201cWe kind\nof have this outlook where if you don\u2019t have a degree, you don\u2019t have a home,\nand you don\u2019t have a nice car you\u2019re not living up to some made up, societal\nexpectations\u2014and that\u2019s not the case at all. If you were to take your average\n28-year-old who has graduated, owns a home, and a semi-new car\u2014you\u2019re sitting\non at least $300,000 in debt right off the bat.\u201d<\/p>\n\n\n\n

\u201cWhatever\nfinancial obligations you may have, the last thing you want to do is put\nyourself in a position where you can\u2019t afford to keep those obligations. You\ncan become \u201chouse poor\u201d where all your income is going into your home\u2014you can\u2019t\nenjoy life because you\u2019re trying to meet these societal expectations.\u201d <\/p>\n\n\n\n

\u201cI would\nsay the biggest thing to do is to become debt-free and start a savings\naccount\u2014an emergency fund\u2014and putting into a retirement account and continually\nadding to that emergency fund and continually adding to those retirement\naccounts and paying off your debt. Once you get to that point, you can start\naffording those nice things once you have established a nice base for\nyourself.\u201d <\/p>\n\n\n\n

\u201cEverybody\u2019s\ntrying to do it all at once and you just fall into a giant debt trap.\u201d<\/p>\n\n\n\n

\"Before<\/figure>\n\n\n\n

How much money should you save before your 20\u2019s are over?<\/strong><\/h2>\n\n\n\n

\u201cIt\u2019s subjective, but as long as you\u2019re doing that 20 percent to 25 percent of your paycheck you\u2019re going to be on the right track. And I realize not everybody can do that 20 percent to 25 percent because a lot of people are still living that paycheck-to-paycheck kind of life\u2014by the time expenses are gone, pretty much everything else is gone.\u201d <\/p>\n\n\n\n

\u201cIf you\u2019re practicing proper spending habits then eventually you\u2019re going to catch up and get to that point.\u201d<\/p>\n\n\n\n

\n\n\n\n

About Daniel Grimm<\/h2>\n\n\n\n
\"Daniel<\/figure><\/div>\n\n\n\n

Daniel Grimm is a Financial Advisor and Registered Representative at R&R Group. Daniel Grimm has years of experience working in the banking and financial industry, guiding his clients through investment and money management decisions. If you have questions for Daniel about his interview with CreditRepair.com, you can find him at RRGroupUSA.com. <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Tips from a financial advisor on how to best manage your money in your 20\u2019s to set yourself up for less debt and stress later on.<\/p>\n","protected":false},"author":53,"featured_media":358310,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[158],"tags":[267,92,166],"yoast_head":"\nMoney Management Advice for Your 20's - CreditRepair.com<\/title>\n<meta name=\"description\" content=\"Tips from a financial advisor on how to best manage your money in your 20\u2019s to set yourself up for less debt and stress later on.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.creditrepair.com\/blog\/finance\/money-management-advice-for-your-20s\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Money Management Advice for Your 20's\" \/>\n<meta property=\"og:description\" content=\"Tips from a financial advisor on how to best manage your money in your 20\u2019s to set yourself up for less debt and stress later on.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.creditrepair.com\/blog\/finance\/money-management-advice-for-your-20s\/\" \/>\n<meta property=\"og:site_name\" content=\"CreditRepair.com\" \/>\n<meta property=\"article:published_time\" content=\"2020-03-19T18:29:59+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-08-04T16:56:58+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.creditrepair.com\/blog\/wp-content\/uploads\/2020\/03\/Blog-PhotosArtboard-76-e1585338412696.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"648\" \/>\n\t<meta property=\"og:image:height\" content=\"420\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"CreditRepair.com\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.creditrepair.com\/blog\/#website\",\"url\":\"https:\/\/www.creditrepair.com\/blog\/\",\"name\":\"CreditRepair.com\",\"description\":\"We are the credit repair experts\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.creditrepair.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/www.creditrepair.com\/blog\/finance\/money-management-advice-for-your-20s\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/www.creditrepair.com\/blog\/wp-content\/uploads\/2020\/03\/Blog-PhotosArtboard-76-e1585338412696.jpg\",\"contentUrl\":\"https:\/\/www.creditrepair.com\/blog\/wp-content\/uploads\/2020\/03\/Blog-PhotosArtboard-76-e1585338412696.jpg\",\"width\":648,\"height\":420,\"caption\":\"Woman sitting at a laptop.\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.creditrepair.com\/blog\/finance\/money-management-advice-for-your-20s\/#webpage\",\"url\":\"https:\/\/www.creditrepair.com\/blog\/finance\/money-management-advice-for-your-20s\/\",\"name\":\"Money Management Advice for Your 20's - 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