For many young adults in their early 20s, balancing finances and a social life can be a juggling act. With student loan payments, rent, insurance and more, it’s no surprise that many 20-somethings push off saving and investing money because they don’t know where to start or don’t have time for it.
Finding that balance doesn’t have to be hard — or time-consuming. You just have to be smart about it. A few steps now can go a long way to ensure that you can be financially secure, prepared for unexpected expenses and still have fun along the way.
The first step many experts recommend: Take inventory.
“Even before you decide what you want to do, or where you want to be in the future, get a really good sense of what your finances look like today,” said Shweta Lawande, a certified financial planner at Francis Financial.
That can be as simple as jotting down what you earn, what your essential expenses are (rent, utilities, car payment, etc.), how much you are currently spending on fun things like shopping and going out, and how much you are saving.
One simple way to look at it is the 50-30-20 rule: Spend 50% of your income on needs, 30% on wants (fun) and save 20%. Consider how your math stacks up against that rule and see if you need to make some adjustments.
Lawande recommends organizing what you have in …….