Previous Story
Preparing for Life: 5 Reasons You Need Life and Financial Services Starting in Your 20s
If you are in your 20s, it is the perfect time to start planning your life and financial services. It is crucial you take advantage of your youth to get the best outcomes for you and your family, whether you plan on great vacations, education, or just stability for your loved ones. Here are five reasons that it’s a good idea to avoid putting off your financial planning until your older years.
Out of Sight and out of Mind
The sooner you get your insurance and financial planning out of the way, the sooner you can stop worrying about it. Peace of mind is worth it and is priceless. It frees you up to focus and be present for all the other things you truly enjoy in life.
Emergencies and Surprises
Emergencies don’t warn you when they pop up. Not having finances and then having large medical bills, for instance, can wreck your future if you don’t plan now.
Options
The sooner you plan, the more options you have. Younger people have different plans to choose from. As you age, your premiums will go up and benefits will reduce.
Compound Interest
The sooner you invest, the more compound interest you will earn. The difference could be huge. It isn’t just a few thousand, but even a few hundred thousand dollars that could be added to your net worth.
Getting a Wholesale Rate
Buying insurance wholesale will always be less expensive than waiting until you are older. By getting it upfront, you may have a higher initial investment at once instead of payments, but the total amount you will pay for your insurance will be drastically reduced. This is what smart millennials are doing to save more and have a better nest egg to rely on in their retirement. The concept is the same as buying in bulk at Costco instead of buying a staple every week at a regular store. Rich people buy in bulk, poor people pay less at a time but more overall and stay poor. The choice is up to you.
When it comes to planning your finances, there is never a better time to start than right now. The younger you are, the more advantages you have on rates and options. If you wait until it’s too late, you might not have the finances to cover it and if you do you will pay much more than you have to. So review the reasons above and start preparing today for your ideal future.
