How to help your kids & grandkids avoid these money blunders

One of the best times financially is when you’re in your 20s. You’re likely not married, don’t have a mortgage or other obligations, and your job is probably the least demanding it will ever be.

If you take advantage of this time, you’ll be very well off in the future, but if you waste this important time by making money mistakes, it could leave your finances deteriorated for years to come.

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When paying off credit card debt, you should pay off the card with the highest interest rate first while still paying the minimum amount due on all other credit cards.

Getting into Credit Card Debt

When you start investing, make sure to park your retirement savings in a special retirement account,  like a 401(k) or Roth IRA. That way, you can lower your taxes and further accelerate your saving for retirement.

Not Saving for Retirement

To stop spending carelessly, you need to know what you’re buying when you go to a store. Make a list of what you will buy, and stick to it. No matter what, you shouldn’t buy things that are not on the list.

Spending Carelessly

You can set aside a portion of your paycheck every month, and when you’re done saving, you can take that vacation or buy that product without worrying about breaking the bank.

Taking Loans for Big Purchases

Create a budget. Outline your income and how much you intend to spend on each category of expenses: food, rent, entertainment, etc. Then, add up the expenses and check if they are less than your income.

Not Living Within Your Means

But the most important thing is to stick to the budget. If you don’t, then there’s no point in having one in the first place.

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