How to Manage Your Money In Your 20s, 30s, and 40s

Here are practical tips to help you for 3 decades

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How to Manage Your Money In Your 20s, 30s, and 40s

In Your 20s

Develop your financial intelligence. Your 20s are the time to get your act together, says Hunt. Figure out where your money’s going, come up with a plan for spending and saving it, and regularly monitor your execution of that plan.

Start an emergency fund. Begin putting aside money in a risk-free savings account that you’ll be able to easily access in case something happens, such as a serious illness or job loss. Hunt suggests setting a goal of six months of living expenses.

Open a retirement savings account. Join your company’s 401k plan, and invest at least to the match, which is typically 3% of your income. Hunt also suggests opening and contributing to a Roth IRA. She advises starting by setting aside 5% of your annual income, which would be split between both accounts, and steadily raising the percentage with each salary increase you get.


Article printed from InvestorPlace Media, http://investorplace.com/2014/03/best-way-manage-money-20s-30s-40s/.

©2014 InvestorPlace Media, LLC

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