Aaah, the 20s! The youngest, most flexible years of adult-life. At the same time, they’re the most-defining decade of adult life. All the decisions you make now can bite you back in the future. This especially rings true in financial matters.
In other words, while the 20s are the decade of carefree wonder, sound financial decisions are critical. The earlier you start managing your finances, the stronger your foundation for a financially-healthy and stress-free life in the future will be. Here’s how an online financial advisor can help you make sound financial choices in your 20s.
An Advisor Will Help You Avoid Debts
As noted, the 20s are the most carefree decade of any adult’s life. At this age, most people are usually fresh-off college and are either looking for a job or have just found one. At this stage, they also have nothing holding them back. No kids to worry about, no mortgage to cover or a spouse to please. Probably just a girlfriend or boyfriend who’s also of the same age, hence similar situation.
With nothing to worry about and a life to enjoy, most 20 or mid 20 something-year-olds will often spend their money aimlessly and take credit cards without thinking hard about it. This is how they end up knee-deep in debts. Hiring an online financial advisor in your 20s is beneficial as they’ll advise you on how to live within your paycheck. If you have existing debts, for instance, a student loan, a financial advisor will offer you tips on how to divide your income, so you pay the loan, sustain your lifestyle, and at the same time, remain with a little something for saving.
They Will Help Ensure You’re Not Leaving Free Money on the Table
When you’re employed, your employer will probably match your 401(k) contributions to a separate tax-deferred account. If your contribution to your 401(k) account is 3% and you get $60,000, your employer is supposed to put the same amount into it. But if they put in 4%, it means they’re putting in 2,400 into your tax-deferred account; hence you’re getting even more free money. If your employer does offer this, take advantage of this signing up and contributing at least enough to your 401(k).
But as a 20 or 20 something-year-old who just got their first job, you may not know this, which means you’ll be leaving free money on the table. An advisor will guide you on how to go about such situations.
They Help You Make Sound Investment Choices
The 20s and mid-20s are the best time to invest because no heavy responsibilities are eating up your paycheck. At the same time, you’re also relatively new to the world of investments, and it’s easy to make poor choices. Here’s where a financial advisor comes in handy. They’ll guide you on the right investments, steering you clear from those that are likely to cause you losses.
They Help Keep Your Financial Future on Track
As you grow older, you face new events, and you come across new opportunities as well. For instance, you may get a promotion or a new job with better pay. Having a financial advisor will prove incredibly beneficial as they’ll help you make financial decisions that accommodate any changes happening in your life.
For instance, if you and your girlfriend/boyfriend suddenly found out you are pregnant, an online financial advisor will offer advice that’ll help you adjust your existing financial strategies to accommodate the changes while at the same time progressing financially.
The last thing you wish to happen in life is to spend your 30s, 40s, or even worse, retirement years rehabilitating the financial damage you did to your life in your early or mid-twenties. Therefore, hire an experienced online financial advisor to help you make sound choices and enjoy a carefree life without sacrificing your future comfort. What’s more is that you get this advice anytime, anywhere, because online advisors are based online. Therefore, you don’t have to worry about setting time aside to visit them physically as they’ll fit in your schedule, regardless of how tight it may be. Moreover, they’re relatively affordable.