3 Financial Tips for the Under 30 Crowd

There is good sense in learning the art of money management while in your twenties.

The common impression of young professionals is that they spend what they earn as quickly as it comes in. While that may be true for many, it need not be true for you. Learn all you can right now about wise saving, investing, and budgeting—the long-term dividends will undoubtedly be to your liking.

While there are few miracles in the financial realm, there are many commonplace steps which even the most cynical of advisors will acknowledge work with notable consistency. We have listed several of them here.

 

Important Money/Savings Tips for Those Under 30

Planning, discipline and a willingness to learn are fundamental elements of any sound financial mindset. Guided by the tips provided below, such mindset will serve you well.

 

1. Be Selective with Interest Rates

When making a large purchase via financing or a repayment plan, the listed price is never the actual price. When borrowing from a bank or private lender, for example, there is always the interest to factor in. The good news is you can control the rate you are willing to accept.

Car loans and credit card debt are almost always negotiable. As an interest calculator will reveal, even a minor difference in the interest rate can mean thousands of dollars in added expense over the life of a loan. Evaluate the actual price when making any large purchases by being discerning of the associated rates.

 

2. Save Early and Wisely

Establish a firm savings goal and honor it without exception. And note: Just as interest can work against a habitual borrower, it can and will benefit a habitual saver.

So long as your expenditures do not exceed your income, you will never be without money to invest. Whether in a savings account, in real estate, or in a mutual fund, allowing your money to work for you rather than against you is always advisable.

 

3. Refinance When Necessary and Borrow Responsibly

Loans are often a matter of exigency, which is to say you do not always have the time to negotiate with your lender(s) a sound, long-term borrowing structure. The good news for borrowers is that there are lenders who specialize in loan refinancing and debt consolidation.

Far from being a shell game, this financial avenue allows borrowers to structure their debts in a way that yields more manageable repayment terms without the risk of risking their credit. Explore these options if your own debts have become overly burdensome.

This applies very much to student loan debt, as rising college costs have taken a toll on the financial well-being of many students. Fortunately for graduate students, there is considerable bargaining power in the student loan arena, as federal lending options have often dried up for them by the time their undergraduate years have concluded.

Going through a private lender can be advantageous from an interest rate and repayment standpoint. As mentioned above, accept only low-interest loans where possible.

 

Financial Tips, In Closing

Take a long view of your spending, saving, borrowing, and investing habits. Tomorrow will come and go quickly, but the years ahead are likely many.

Make sure your financial foundation is intact, your debts minimal, and your interest rates carefully agreed upon.

What kind of financial tips can you share for those less than 30?