Your twenties are an incredible time in your life. You can do what you want without a care in the world with no responsibilities and the fountain of youth on your side. If only there weren’t any consequences.
Sadly, there are, and most of them come back to bite you as you reach your late twenties to early thirties. It’s terrible timing because this is when you’re doing adult stuff, such as buying property and having kids, which costs a fortune.
The previous errors only compound your financial difficulties, and it isn’t like you can turn back the clock. Thankfully, you can repair the substantial errors underneath.
Skipping Pension Savings
It’s tempting to skip saving for a period of your life that you never expect to arrive so quickly. Therefore, if your savings are bare and you’re in debt, your future may not look bright. That’s why it’s essential to take advantage of employer pension schemes as they match your contributions. To save 5% of your salary, you only need to squirrel away 2.5% every month. If you did think about your pension but listening to questionable advice, SIPP claims is an option. Suing for money is expensive, yet you have a good chance of recouping the money and more if you moved your savings to a Self-Invested Personal Pension.
Credit Card Debt
Along with student loan debts, credit card arrears are the main source of debt for young people. Student loans tend to have a lower interest rate, although can take a long time to pay off. Although it may seem sensible to get a 0% interest rate on credit cards, these are usually limited time offers that are then hiked up. Unfortunately, you still may be paying it off now as debt usually spirals out of control. The first step is to stop using the card immediately so that your balances don’t increase. Then, you’ve got to speak to your creditors and explain your position. While they want their money, they understand they’ll get nothing if you default, and may accept a payment plan.
Third-Party, Fire, & Theft Insurance
You passed your test and wanted to get behind the wheel straight away. So, you opted for the cheapest insurance – third-party, fire and theft – and hit the road. Unluckily, you also hit another motorist and had to pay for the damage out of your pocket. That incident may continue to cost you a fortune in car ownership fees. When your car insurance expenses are high, you need to compromise. Shopping around may not be enough, but installing a black box for insurance purposes could slash your contributions by a considerable margin.
Staying Loyal To An Employer
Sorry if this sounds immoral, yet you can’t let an outdated notion of loyalty make you feel guilty. The reality is that employers pay you for your services, so you don’t owe them anything. If anything, you owe it to yourself to take a risk and apply for new roles. That way, you’ll boost your earning power and have more money to rectify your previous mistakes.
It only takes a single job application to change your life and your finances.