It’s easy to be unprepared when it comes to emergency situations. However, if you don’t have enough money saved up to deal with an emergency, it can put your personal and financial well-being at risk. If you aren’t financially prepared, here are some of the most likely scenarios that could occur and how you can deal with them.
How to prepare in your 20s
Hopefully, you’re already contributing to your 401(k) or retirement account and saving for a rainy day. If you’re not, get started ASAP. Once you have money to spare, create an emergency fund—say, three to six months of living expenses—and stash it in a high-yield savings account (like CIT Bank). You should also max out your health insurance and invest in disability insurance. And consider buying long-term care insurance before you turn 40.
5 Strategies To Pay Off Debt And Build Wealth
Getting out of debt is a daunting task. When you’re in over your head, it can seem like there’s no way out. But, with some smart money-management strategies and patience, you can pay off your debt and build wealth for years to come. The following five strategies should help you get started.
1. Take an honest look at your finances: Figure out exactly how much debt you have and how much interest you’re paying on each loan or credit card balance. To start, take stock of all of your debts, including mortgages, student loans, car loans or leases, and credit cards—anything that has an interest rate attached to it (including those department store cards that have a low initial teaser rate).
Add up what you owe in total—including interest—and then divide by 12 to find your monthly payment amount. If possible, list them from the highest interest rate down so that you can tackle them one at a time while paying less interest overall on any individual loan or credit card balance.
4 Ways To Invest In Real Estate For Beginners
Want to invest in real estate but have no idea where to start? This guide will give you a quick and easy overview of your options. If you’re new to investing, be sure to check out our other beginner-friendly guides, including how to buy stocks for beginners and how to get started with mutual funds.