Important Financial Tips for Young People

Your mid-20s can be a difficult time. Generally, it’s the time when you spend the most, make the least amount of money and are introduced to a slew of new financial burdens. It can be an exciting, dangerous time that should be navigated carefully. Here are some tips to help save you money and keep you ahead of the game.

Car Insurance

Many people in their 20s don’t realize the importance of car insurance until it is too late. Many people are underinsured and others are not insured at all. But when an accident strikes, you find out quickly that the financial burden can be devastating. Whether you were at fault or not, having car insurance makes things run much smoother and will help you out with tow and repair fees. Plans are typically not too expensive, and will pay off big time in the event of a car accident.

Create a Budget

One of the most common mistakes that people make is not setting a budget. Take into account food, gas, rent, groceries, etc. and set aside plenty of money for life’s emergencies. This will help you plan out your life financially and give you a grasp on much how you are spending vs. saving.

Student Loans

A staggering 70% of students graduate with debt. Student loans can loom over their heads for several years, and sometimes cause students to dig themselves in an inescapable pit. It’s easy to run up credit card bills trying to pay student loans back, but it is important to be cautious with your loans. Don’t ignore your loans by any means, but pay them back at a rate that works for your budget.

Improve Your Credit

Having good credit is essential when making the transition to the “adult world.” Many people in their 20s don’t understand the importance of establishing credit and keeping their score high. Good credit can be vital for insurance, rentals, and big purchases. Pay your card balances below their limit, pay all your payments and loans on time, and only open new credit cards when necessary.

Health Insurance

A stay in the hospital can break the bank for even the most financially sound people, especially if they don’t have health insurance. Life happens, and you never know what accidents or health issues may arise in the coming months/years. When life does happen, it tends to be very expensive without insurance. An uninsured person might end up paying tens of thousands of dollars more than someone with insurance. Make sure to get a policy that works for you and your budget, and get protected as soon as possible.

The people at Putnam-Saint Johns Counties Farm Bureau understand that life isn’t perfect. Accidents happen, people make mistakes, and life throws us many curve balls along the way. It is important to take steps to expect the unexpected and handle finances in a mature, responsible way. Contact us today to get in touch with the professionals at Putnam-Saint Johns Counties Farm Bureau, we work with you to get you on a great insurance plan that fits within your budget.