Young Adults: Begin Financial Planning Now And Benefit Later

If you think financial planning is for older adults or those who are near retirement, think again. Some older adults have put things in place so they can retire well. Others may be panicking and trying to find a way to make up for a lack of retirement planning…so if you are a young adult, planning now will help you avoid belonging to the latter group when you get older.

Yahoo! published an article entitled “13 Money Lies You Should Stop Telling Yourself by Age 30″ and it gives some good food for thought about the ways you can fool yourself into financial neglect.

“If I turn a blind eye, somehow my finances will figure themselves out.”

The writer mentions ignoring bank account statements “for fear of how low the number would be,” not checking credit reports, and being in ignorance about the matching 401(k) offered at her first job.

It can seem scary to examine your finances…but this discomfort is nothing compared to what can happen in you ignore financial matters. If you are too afraid to face your finances on your own, seek the expert advice of a Fee-Only Financial Planner.

“I should buy a home because that’s what grown-ups do”

You have likely seen a number of reports or read many articles on renting vs. owning. In the end, this decision is an individual one. You need to do what will work best for your situation and make sure your housing costs don’t get out of hand, no matter what you hear about the housing market.

“I’m too inexperienced to start investing.”

You may feel as if you don’t know enough, but you have time on your side. As a young adult, you have time for your money to grow: “According to personal finance expert Kimberly Palmer, someone who begins investing at age 25 will only have to save $4,830 annually to reach $1 million by age 65…”

About the author

Claire Emory, MBA, CFA, CFP®

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