Money matters are things that we all sometimes just don’t want to face up to. This can be especially true when we are young and the problems of financing a retirement literally seem to be years in the future.
The trouble is, the longer we leave it to become organized, the harder it can be. By the same token, the earlier we get to grips with our long-term financial planning, the more chances we have of enjoying a successful and secure future.
Anyone in middle age who has been taking home a decent salary for years and paid down most of their mortgage might be expected to have their financial house in order. However, recent global economic shifts and changes mean that younger people might not have such a straightforward time when it comes to planning their future, or even their present.
People in their 20s and 30s face increased pressures in terms of getting on the property ladder. Buying real estate is harder than it was before the banking crisis as regulations have been tightened and lenders set higher criteria.
Not only that but many students now leave higher education having already built up large sums in loans and borrowing that were needed to get them through college.
Must-dos and Must-don’ts
Having a basic economic plan is a must-do. Young people need to know exactly what is coming in and how much is going out in order to have an overview of how much, if anything, they can put away for the future.
Choosing between savings plans and investments can also be complicated. IRAs and 401ks might be easy to understand for someone who is used to looking at safe havens for their spare money, but for younger people trying to make ends meet, the very idea of putting money aside can be a difficult thing to come to terms with.
Taking advice is something that we should all do. Whether it is from a family member or from a prominent person such as Wes Edens, the billionaire owner of the Milwaukee Bucks who is famous for helping his young players learn how to handle their finances, having a trusted and experienced source of knowledge can make all the difference.
Edens is on record as saying, “I know when I was 22 (years old), I made a lot of bad decisions.” He explained how he wanted “to help guys out to understand financially how to be in a better place.”
Of course, not every young person will have the kind of income that professional basketball players can generate, but even those on modest salaries need to look towards their later years.
Building up a habit of making savings and investments, even from the smallest starts, can be a great way to lay the groundwork for a worry-free future.
Although personal contact with the likes of Wes Edens may not be available to everyone, his advice and that of many others can be found easily online and then applied to individual circumstances.