Andrew Corbman is the President and Founder of ASC Financial, a firm that provides retirement strategies and social security exploration services. Passionate about solving financial problems, Andrew Corbman has helped countless clients in their journey to build and preserve wealth. Read his blog below about money management in your 20s.
Contrary to popular belief, one shouldn’t start immediately saving up for retirement in his/her 20s. While a head start of a few years can certainly make a big difference to one’s retirement fund because of the power of compound interest, one must not forget that this stage in life is about exploration and finding one’s place in the world as well. More often than not, this phase entails spending and investing in one’s self. Andrew Corbman points out that the goals of a twenty-something professional are different from someone in his/her 40s or 50s. As such, it is best to consult a financial adviser who can sit down with you, discuss your goals, and develop a sound financial strategy accordingly.
On that note, what are the best ways to manage money for a twenty-something professional? Andrew Corbman shares the following:
1. Pay off student debt – Roughly 44 million Americans owe $1.4 trillion in student debt. If you have student debt, it’s advisable to start paying this off right away, even if you’re just paying the minimum amount. Of course, paying more than the minimum is always better, as this reduces the total amount of money you need to pay with interest. Andrew Corbman advises creating a budget whenever paying off debt. This makes it easier to know where to cut back on spending.
2. Get insured – Your twenties is the best time to get life insurance because premiums are cheaper. Andrew Corbman warns millennials to not take their youth for granted. Life insurance isn’t just for married couples or those with dependents. In fact, some insurance policies include coverage for certain medical conditions. If you’re shopping around for a policy, don’t be afraid to ask questions – the last thing you want is to buy a policy that doesn’t meet your needs and goals.
3. Invest in yourself – As mentioned, one must not forget to invest in one’s self. For a twenty-something professional, this could mean learning a new skill or going to graduate school, which can only help his/her career prospects and boost his/her income potential. Andrew Corbman believes this is the most important thing to do at this stage of life.
Stay tuned to read more from Andrew Corbman.