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Still looking for New Year’s resolutions? Taking a step towards financial freedom and growing your wealth is definitely a smart move in 2023. For the millennial in his late 20s to his 30s, this year is a great time to make long-term investments and build his net of financial safety. Whether you’re looking to buy a home, start saving for retirement, or simply want to learn more about investing this year, here are some tips to help you get started on your financial journey. I’d like to introduce_______
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It’s never too early or too late to start learning how to invest your money. The sooner we can build financial literacy and prepare for the future, the better. Keep reading to discover 6 smart investment moves every millennial can make in his 2023.
save for retirement
If you’re in your 20s and 30s, retirement probably seems like light years away. However, it is imperative that you start saving for retirement as soon as possible to avoid delaying retirement or having to set aside large sums of money for retirement.
Additionally, many employers offer Employer Match 401(k) plans to help you double your monthly investment.
If you’ve already opened an IRA account, a key investment tip to take advantage of is to maximize your 2022 retirement savings by April.
“Set a goal of maximizing your IRA in 2022,” said Nathaniel Hoskin, founder and lead advisor of wealth management firm Hoskin Capital. “You can contribute to the IRA until you file your taxes, which is April 15th in most cases. The biggest mistake people in their 20s and his 30s make is his It’s missing a year of contributions.”
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build a good credit score
If you are in your 20s and 30s and are in debt, now is the perfect time to get out of debt and start the new year without a financial burden.
High-interest debt can be a particularly heavy financial burden, and it’s best to pay it off as soon as possible. Be sure to evaluate your credit card debt and personal loans this year and eliminate these payments before making any major financial investments.
increase income
What better way to have more room to invest and brighten your financial future than to increase your income?
If you’re struggling to save money for retirement or a new home, and you don’t have an emergency fund, it may be time to raise your salary. Consider developing additional sources of income, such as side jobs, freelancing, or coaching. Rather than learning something new, it may be helpful to consider areas in which you already have expertise and how you can apply them in a financially profitable way.
build an emergency fund
It’s a good idea to have an emergency fund in case of unexpected life events such as job loss or medical emergencies. Having an emergency fund can save you thousands of dollars and less stress down the road by reducing the chances of having to borrow or take out a loan.
“Have an emergency fund for at least three months’ expenses,” Hoskin said. “This is your ‘recession protection’ to ensure that sudden expenses or job losses don’t ruin big goals like buying a house or going back to school. ”
Automate your finances
If you constantly forget to pay off your credit cards, automating your finances can help you build a good credit score and make bigger financial purchases in the future.
Taylor J Kovar, CFP and CEO of The Money Couple, said: “Automate bill payments so you never miss a bill payment. Automate credit card payments weekly. You’ll be amazed at the peace of mind this can bring to your financial situation.” .”
increase financial literacy
One of the greatest gifts you can give yourself this year is to invest in financial literacy. Taking the time to learn about finances will prepare you for the future and allow you to enjoy more financial freedom and preparation.
“Invest in your financial education,” Hoskin said. “The more you understand about money, whether it’s by buying books or taking courses, the more confident you’ll be. This will also reduce the amount of money spent on financial advice.”
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