Bad Money Habits to Break Before Hitting 30

As children began to grow up, they start to have responsibilities placed on their shoulders. More often than not, these responsibilities include bills (i.e. car payments, rent, loan payments). Because of this sudden change in responsibility, children must grow into young adults and learn how to manage their money more wisely than before. To help them learn to manage their money, below are several financial tips for young adults under the age of 30.

Money Tips for Young Adults

  • Discover what you want to do in the future. This might seem easy at first, but kids coming out of high school might struggle a bit with discovering where their passions lie. When kids graduate and simply settle into a job, they may become uneasy and inefficient. No boss or business owner wants their employees too lazy. It is better to search within themselves and discover what it is they wish to do in the future before graduating high school or college, if necessary.
Bad Money Habits
  • Learn that money is valuable. Money is not the source of happiness, but money can keep your life comfortable and less worrisome. It is better to save money than continue to spend throughout the young adult years. Older adults have found that they wished they had saved while they were younger instead of squandering their money on useless things. Bankrate.com gives a few examples of saving as a young adult. Sometimes it is necessary to spend money on things that are required for a job or college class, but it is not wise to blow all of the money earned. Savings accounts can become extremely beneficial to the young adult.
  • Realize that bad things do happen. Humans cannot control the things that happen to them. A car will break down at the most inopportune time. A child will get sick when funds are low. Someone will get laid off, making money tight for the month or even several months. This particular point goes back to saving. By saving money earned in the younger years, an older adult will be more likely to have the necessary funds needed when something unexpected happens. It happens to everyone.
  • Learn how income taxes work. Investopedia.com gives several examples of the importance of understanding taxes. By understanding taxes, young adults will learn why their money is being taken out, and they will be able to figure what their take-home pay will be. This is crucial to budgeting.
  • Learn to budget. It can be hard to look through the bank account at the end of the month and be shocked at the lack of funds. Where did the money go? By knowing where the young adults' paychecks go, it is easier to figure out where the money is being spent. The easiest way to understand this is by starting a budget. Luckily, budgeting can also help young adults save their money.
Conclusion

It is common to see a young adult struggling for money. After spending for college or job necessities, it is easy to squander the rest away for personal gain or fun; however, this can become a bad thing when money begins to get tight. For example, someone might become extremely sick, or the car might break down. These two things would cause tight finances. Losing a job is another of the horrible things that happen to young adults every day, and the loss of income can put stress on the young adult who is now financially aware. There is good news for young adults seeking a change.

It is not required to have a degree in finances to understand the financial state of a young adult. By using these money tips, young adults can take control of their finances at a young age. It might seem tiresome to a young adult, but taking control of their finances can be beneficial to their future. Not only could it help prevent going too deeply into debt, but it can help keep the stress of financial problems at bay. Saving, learning about taxes, and budgeting are only a few of the wonderful tools that young adults can use to increase their financial awareness.

5 Ways To Set Yourself Up For Retirement In Your 20s

The sooner you start planning for your retirement, the more you will be able to take advantage of compound interest. Your 20s are a great time to start figuring you your different investment strategies when it comes to your retirement. It can be hard to get into retirement planning in your 20s if you have no prior experience saving or investing. However, once you start researching the different methods of retirement planning, you will have a new found confidence in your financial future. Setting yourself up for retirement in your 20s is a great way to get the ball rolling early and start your journey to retirement on the right foot. 

Automate your retirement planning 

When you are trying to save your money for retirement, it can be difficult to always be disciplined with your money. For the first time in your life, you now have a substantial income which is very enticing. Buying new cars and taking vacations can seem like a fun thing to do, but it leaves very little money left at the end of the year for savings. It is important to put your saving on autopilot if you want to make a big different in your financial future. 

Retirement In Your 20s

Contacting the payroll department of the company you work for is a great place to start. The professionals working in the payroll department will be more than willing to walk you through the steps of auto deposits. You can decide what portion of your check every month is going to go into retirement planning. This makes saving for retirement so much easier. Every month the money will be taken out of your paycheck without you even knowing. This will force you to live on a smaller budget and make the appropriate lifestyle changes that you need in order to start planning for your retirement. 

Maximize your earnings 

Finding the best paying job for your skill set early on is going to make a big difference. If you start at the age of 25, an extra $5,000 a year ends up being an extra $634,000 in earnings over your lifetime. These extra earnings alone will be very beneficial to the future of your savings. When you are looking for that raise, make sure that you are asking your employer at the right time. Don't wait until it is time for a review to ask for a raise. Take advantage of opportunities when you have recently completed a project or otherwise excelled in your position. 

It is important for you to make the most out of your skills. Branding yourself in your industry is going to be crucial to earning the amount of money that will help you save for retirement. Using social media to accentuate your career highlights is a very wise thing to do. Linkedin is the social media network of choice for professionals today. Having an impressive profile on Linkedin will raise your value and help employers see your worth as a member of their organization. 

Seek investment help from financial professionals 

Making advanced investing decisions for your retirement can be a very difficult thing to do. When you are spending most of your time working on your career in an industry that is far removed from finance, you may lack the skills needed to properly plan for your future. This is why it is important to seek out a financial adviser who specializes in retirement planning. These professionals have years of experience helping individuals plan for their financial futures. 

Picking the right financial planner is a very important and tricky thing to do. There are far too many stories in the news of financial planners who were not diligent with their client's investments and ended up making poor financial decisions in the long run. It is important to meet with many different financial professionals before deciding which adviser is going to be the right fit for you. Don't rush when you are choosing an adviser as this is going to be one of the most important decisions for your financial future. 

Create great saving habits 

Learning how to save is something that doesn't happen overnight. Most of us have learned from our parents or friends how to spend. We have never had many great role models who have taught us how to save. However, there is no time like the present to start learning how to save. Start finding many different opportunities to save. When you save small amounts of money on a regular basis, you will find that habits start to form. You will quickly realize that there are many of your old spending habits that just don't make sense anymore. Eating out, going on random road trips, buying the latest electronics, and going on shopping sprees at the mall will all seem like irresponsible things to do financially once you start living with a saving mindset. 

New habits take time to build. Don't feel discouraged if you are having trouble saving early on. The more you save, the easier it will become. You will start to see your savings build and this will motivate you to keep on your pathway to financial greatness. 

Look for investment options with low fees and employers with great benefits

Planning for your retirement can be a costly thing to do. Financial professionals have to make a living just like anyone else. While this is true, you want to avoid investing in funds that will eat up your gains with fees. These fees can really cut into the interest that would help your portfolio grow over the years. 

It is important to do your research when looking for different investment options in order to avoid these fees. If your employer offers retirement matching, take advantage of this. This can all but eliminate the fees that you would have to otherwise deal with. Retirement matching is one of the most useful things in the investment world. When searching for your ideal work situation, finding a company that will match your retirement spending should be a key issue to take into consideration.

Is Life Insurance a Good Investments Option?

Life insurance is not an investment so much so as it is a replacement plan. It is a simple concept that when a person passes away, his or her family is not affected financially. Also, the term insurance in “Life Insurance” is a little misleading as one is not insuring anything, no one can keep a person from dying.

A few investments in during the lifetime will result in a beneficiary getting a stipulated sum after the death of the policyholder. The survivor benefit is given when the policy term comes to an end, and since the term is often long, this is unlikely. More often than not, life insurance plans, term insurance is seen as a bad investment due to its abstract nature. 

Life Insurance

But, it is advised by every financial expert to invest in at least one such plan.

Overview

There are different types of life insurance plans, term insurance or such policies. The insurance holder gets death benefits after a said amount of time. If he/she were to face an untimely death, the financial situation of the beneficiaries will be taken care of by the company. 

You are asked to pick a nominee or nominees when you buy life insurance. Usually, they are the nearest family members or spouse, and they get the benefit from the company. 

Life insurance plans, term insurance is usually flexible allowing the person to decide if the benefits are to be given in lump sum or as a monthly amount. There are many choices when it comes to insurance and you can select one of the best term insurance for yourself.

Features of Life Insurance Plans, Term Insurance

Each insurance company has different plans and policies and so features vary. You can always do a term insurance comparison to find the life insurance, term insurance that fits your needs. 

But some core features persist among all plans like tax saving investments benefits and death benefits. The survival benefits maturity age which can be anywhere between 65-70 years. Plan choice is another feature that lets the insurance holder choose based in single or joint life insurance. 
Term insurance policies provide a lot of flexibility which is needed given the nature of the insurance. 

Eligibility 

Every Indian citizen can buy an insurance policy from the various government and private insurance companies. Even a minor’s life can be insured by parents or guardians.

The Various Benefits
  • A lump sum amount in an event of sudden death
  • Life insurance plans, term insurance facilitates Provisions for the family that they continue to live without financial difficulties
  • Takes care of the family members and other beneficiaries in case of sickness or illness
  • SBI term insurance also has seamless online feature to make it even less painful to claim the amount
  • Lump sum amount is given if diagnosed with critical illness
  • Additional amount if faced with sudden death
How to Decide the Plan Which Fits the Needs

How can one be sure that this is the best insurance plan 2016? The company’s reliability is one of the key factors when it comes to deciding which life insurance, term insurance to get. 

Also, check what types of scenarios are covered in the plan, for example, term insurance ICICI covers critical illnesses like cancer. 

Then the expenses that are the premiums are a major factor in deciding what plan to buy as one must take into consideration the amount spent over the years to be insured. Tem insurance premium calculators are available to calculate and plan the policy before one buys it.

Documents Needed

While applying for a Life Insurance policy, you will need various documents handy. Some of those are PAN card, birth certificate and address proof.

It is best to consult an agent who can guide you well.

The Question Should What to Buy 

Do not see the premium amount as a hindrance in your personal budget. In the long run, it is always a good idea to know that when you are gone your kids won’t have to struggle financially

There are many plans out there each one is slightly different and has some benefits that the other will not have. While studying the plan you are buying, keep a checklist of the features you require. 

The importance of Life insurance plans, term insurance is not appreciated enough. It is an investment that provides fixed returns when needed.

Tips That Will Instantly Cut Down Your Bike Insurance Premium

The convenience offered by a bike in India is unparalleled. Riding a bike is always preferred over other modes of transport. That’s because a bike offers a great advantage in terms of navigating through city traffic along with reduced travel costs. 

Also, with the rising cost of living and inflation, people prefer a bike or a two wheeler for their traveling, both, short as well as long commutes. Thus it’s no surprise to see bike manufacturers offering a lot of bikes in the commuter segment that offer great fuel economy and value for money.  In such scenarios, buying insurance for your bike is perceived as an unnecessary expenditure and is frowned upon. However, insurance is very crucial for your bike, especially considering your safety and the fact that we are legally obliged to have our bikes insured. 

Bike Insurance

Now that that the need for a bike insurance policy is firmly established, let’s check out some ways to reduce the bike insurance premium. Too good to be true? Read on to find out more-

Choose the right bike

Saving your bike insurance premium begins with getting your basics right. Choosing a right bike taking into consideration your budget and the amount of traveling you would be doing can help you save your money. If you buy a bike that is doing well in the market and popular, you can get a competitive premium from the insurance providers. This is because the chances of repairs and other maintenance costs are low for such bikes.

Aim for a No Claim Bonus

You can avail a no claim bonus during renewal when you don’t file a claim during the policy period. This will cut down your bike insurance premium significantly as most insurance providers offer good NCB discounts. Thus, ensure that you don’t file claims for minor incidents like scratches or minor dents. 

Buy Online!

It’s always a good idea to buy bike insurance online. You get good discounts and a host of other benefits.

Secure your bike

Ensuring that your bike is secure against theft and accidental damage will fetch you low premium amount. This is because the possibility of claims is significantly reduced. 

Opt for Voluntary Deductible

The voluntary deductible is the amount that you would need to shell out during claim settlement. If your voluntary deductible increases, the bike insurance premium goes down and vice versa. However, it is important that you strike a right balance among the two, taking your needs into consideration.

Ask for discounts

If you ask for discounts to your insurance agent at the time of buying, chances are high that you will get one. This is because of the rising competition in the industry.

To conclude with, here are some more quick tips:
  • Don’t modify your bike
  • Ensure a clean driving record
  • Join a Biker’s association
  • Don’t purchase imported bikes

Top 3 Personal Finance Tips That Will Change the Way You Think About Money

If coupon-clipping and monthly budgets aren’t working out for you, it might be time to consider a new approach to personal finance. In fact, you may want to try changing the entire way you think about money. Obviously that’s no walk in the park, but here are 3 tips to get you started.

1. Treat Debt Like a Disease

Let’s get this straight immediately: debt should never be something you “carry” with you while you go about your way, living a normal life. If you have debt – especially if it’s the worst kind: credit card debt – then you should act as if you’ve contracted a disease.

Personal Finance Tips

Seriously: debt will drag you down and sap the life out of you, just like a disease. Fix it fast, even if it means everything else gets put on hold temporarily. When you get the flu, you stay home to heal yourself, right? Work will just have to wait. Same with “healing” yourself from debt. Drop all extra purchases beyond food and shelter until it’s gone and you’re healthy once again.

Don’t live with it, don’t budget for it- just get rid of it by any means possible, even if it’s extreme frugality.  You’ll be so much stronger when you emerge, all debt-free and ready to take on the world.

2. Treat Purchases Like Injuries

Every time you cave into the desire to treat yourself, you’re hurting your chances at improving your financial life. In that way, every purchase is an injury. But you love your TJMaxx excursions and your daily latte. And surely nobody expects you tolerate an old phone or a small TV, right? Wrong!

If you have any financial goals at all, every purchase you make sets you back a few steps from achieving those goals. Of course you have to spend money sometimes, but try and train your brain to distinguish between necessary spending and everything else.

3. View Credit Cards as Passports to Hell

That may sound a little extreme, but that may be what it takes to shock you into seeing credit cards for what they truly are for most people: one-way tickets to financial ruin.

Most people you know probably think nothing of taking on debt to finance some of life’s major events. These events are one-time occurrences like kitchen renovations, weddings, or big moves across the country when you have to relocate. No problem- that’s what credit cards are for, right?

Again: wrong. When you think nothing of taking on credit card debt, you will never attain the level of wealth you want. Even on a smaller scale, credit card debt will always stand between you and a life of wealth and security.

That’s because there’s always something we want to buy. With credit cards there to make bloated spending possible, you’ll never reach your financial goals unless you declare your cards off-limits for anything other than the bare essentials. Unless you can train yourself to use your credit cards for only what’s absolutely necessary, always paying off the balance each month, then you’re better off without them.

Where It’s At: Behavior, Mindset, and Perspective

As you can see, all 3 of these tips are aimed at changing your behavior when it comes to money. But what’s truly at stake here is your mindset. If you can change the way you view debt, purchases, and credit cards, then you should soon see many of your smaller financial goals falling neatly into place. Good luck!

About the Author: Michelle Custodio is a digital marketing specialist currently working for MagneticTrading.com - a sound financial partner that can guide you to become successful DOW and FTSE traders. You may reach her through Linkedin.