Waterfront Realty Group Inc
Marc Brandt, Waterfront Realty Group IncPhone: (563) 508-7134
Email: [email protected]

Saving for a Home and Managing Money in Your 20s

by Marc Brandt 06/11/2019

Personal financial in your twenties comes with a steep learning curve. One minute you’re studying for your finals and the next you’re expected to suddenly know about APR financing, 401(K)s, and fixed-rate mortgages.

If you’re in your twenties and are facing these new challenges, you’re probably equal parts terrified and excited for the future. And, although it can be anxiety-inducing to step into the world of personal finance, you have one tool to your advantage that your parents and grandparents didn’t have: the internet.

So, in this article, we’re going to give you some tips about buying a home and managing your finances in your twenties.

Have an emergency fund

You probably have a lot of things you want to save for. Down payments on mortgages and auto loans, saving money for traveling, beginning your retirement funds, and maybe even starting a family; they’re all important investments that will take time and financial planning to achieve.

However, one thing that many young people neglect when they first start saving is an emergency fund. There are any number of things that can throw a wrench in your plans in your twenties. You might lose a job and have to live off of savings while hunting for a new one. Maybe something goes wrong with your car and it costs hundreds to repair. Or, you could have unforeseen medical expenses that aren’t covered by your insurance. Regardless of the reason, having an emergency fund will help you stay out of unnecessary debt.

It’s recommended to have at least 6 months of living expenses saved in your emergency fund. Once you have this amount saved, it’s a good idea to keep it in a separate account to avoid spending it on things that aren’t exactly an emergency.

Don’t live above your means

We all know that buying a house, going to college, and even buying groceries are all exponentially more expensive than they used to be. However, it’s still important to try to adjust your lifestyle to the things you can afford.

This includes the vehicle you drive, the first home you buy, and even smaller purchases you make.

Avoiding lifestyle creep

Related to our last point about living above your means, lifestyle creep is the phenomenon that occurs when you get a raise or a higher paying job: the more we make, the more we spend. However, it’s possible to avoid this trend by keeping your finances in check.

The next time you get a raise, make sure that money is put to use in either your retirement fund or savings account. This method is based on the goal of “giving every dollar a job.” When every dollar you earn has a purpose, you’re less likely to spend it on new video game consoles every six months.

About the Author
Author

Marc Brandt

Marc and his wife Susan moved to Florida permanently after owning a winter home in Naples for over 14 years. After joining Waterfront Realty Group, Inc. over 4 years ago, Marc quickly became a top performer among over 150 agents. Marc's knowledge of the area and all the contract options gives him a leg-up and helps close deals to create satisfied customers. Marc is one of only a few agents that achieved getting his broker license and the following important designations: 

REALTOR, CLHMS (Certified Luxury Home Marketing Specialist), CCIM (Certified Commercial Investment Member) Candidate, SRES (Senior Real Estate Specialist), GRI (Graduate Realtor Institute), CNE (Certified Negotiation Expert).

Marc is a 30+ year business veteran having previously owned and operated a sports marketing, commercial printing and digital book publishing firm in the nations heartland - Iowa and Illinois.

Success comes from years of sales and marketing experience and from understanding customer's expectations and providing superior service. Whether selling your property, leasing your commercial investment space or in search of that first vacation retreat, Marc understands what the customers objectives are by (1) asking several important questions and (2) by listening and clearly understanding the answers.

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