Disclaimer: The following is a sponsored post by Lexington Law. All opinions are 100% my own.
Learning the proper financial skills in your 20's (and even sooner!) allows you to create your path to financial freedom.
Understanding how finances work and how to handle your money appropriately can lead to less stress, more control in your life, and a healthy relationship with money.
Below are 4 major financial skills you need to learn before you turn 30, and how to achieve them.
1. Understand what your credit score means
Turning 30 is a huge milestone for many people. For many, it's usually a time where people are settling down and buying a house, landing a new career, or possibly even taking out a loan for a car, business idea, or something else.
However, did you know with a low credit score, you could potentially be denied that house, job, or loan?
With Lex OnTrack, you can track and protect your identity, credit, and finances all in one place. You can get credit repair as needed, a monthly FICO score, credit score analysis, personal finance tools, and identity insurance.
Your credit score is more important than you think. Lexington Law has already helped clients with 10+ million removals in 2017.
If you have an inaccurate credit report and want to improve your credit score, check out Lexington Law here.
2. Learn how to effectively save money
So many of us know how to make money, but saving it is the tricky part. It's so incredibly easy to spend money, especially in your 20's when it seems like everyone is spending hundreds (and possibly thousands) on entertainment and shopping every month.
Luckily, we live in a time where there is an abundance of money-saving tools and tips that can lead you to financial freedom.
Some of my favorite money-saving apps and services include:
- YNAB (You Need A Budget) (create a budget)
- Ibotta (get cash back on receipts)
- Ebates (get cash back online)
- Honey (automatically adds coupons for you during checkout)
Creating a budget and setting aside money into your savings each month is incredibly important. I recommend starting off with an emergency savings fund worth 3x your monthly living expenses.
Understanding retirement and how it works is very confusing to people, which is understandable since no one really teaches us how our retirement savings work.
Here is an easy to understand article on how retirement works. Understanding how it works sooner than later is crucial, since you want to start saving in your 20's.
4. How student loans work
Student loans are confusing and intimidating to many, leaving many people taking student loans out without even really understanding how they work.
Even if you didn't go to school or you've already paid off your loans, understanding how student loans work can help your kids or loved ones understand how it works.
I graduate in 2 months and have already started paying off my loans that are building interest now. To learn how to take out as little as possible in student loans, check out my article here.
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In a nutshell:
1. Understand what your credit score means.
2. Learn how to effectively save money.
3. Save for retirement.
4. Learn how student loans work.
Have you learned any of these financial skills yet?
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