Finances can be quite complicated, but that doesn’t mean you should avoid dealing with this until you’re older. The following is a shortlist of financial information you should know before hitting 30.
Creating an Emergency Fund
A lot of folks don’t have an emergency fund, and you don’t want to be one of these individuals. It’s easy to think you’ll always have enough cash, but the reality is one financial setback can put you in the negative, like an issue with your car or a health issue. You should create an emergency fund before you reach 30. Even if you don’t use it, continue to add to it because you never know when you might need some emergency cash. Try not to look at the fund like a piggy bank but a safety net you can’t touch.
Getting Life Insurance
One thing young people don’t generally think about is death. You are young, healthy, and feel like you’ve got all the time in the world, but unexpected demise is a reality you should consider. A good financial decision is to start thinking about life insurance. What you’ll have to consider is comparing term life insurance with whole life insurance policies to find out which one could work for you. Keep in mind that life insurance is usually more affordable when you’re younger.
Track Credit Score & Report
It may be a good idea to start tracking your credit score and credit report now. You probably know a little about your credit, but you might not be monitoring it closely. You want to order your credit report so that you can see everything that is going on. Look for errors that you can try to dispute. Keep in mind there are three credit bureaus, so make sure you obtain a complete credit report. Continue to track your credit so that it remains in good condition. A good score is going to open all sorts of doors for you, including the chances of owning a home or starting a business. Alternatively, a bad credit score can keep you from achieving life goals.
Car Insurance Hopping
Many folks stay with one insurance company thinking they are saving money by staying loyal, but that’s not always the case. Sometimes, it’s better to switch to another insurance company that works best for you. People don’t usually go through this because it’s too much of a hassle since you have to do some research, but it’s worth your time. A lot of younger people are paying too much for insurance, and there’s no better time to find discounts now that you’ve got years of driving experience.
Getting Renters Insurance
Renters insurance can be helpful, yet many folks don’t purchase a policy. If you want to make sure you’re property is protected while you rent, you need this policy. There are many variations available, so choose one that works for you. In essence, this insurance covers your belongings should they be stolen or get damaged. You’ve invested a lot into the things you own, and all you are doing is being cautious. Some landlords require that you have renters insurance, so finding one now might be necessary.
These are just some things you should know by the time you’re 30, but there’s always more. Consider talking to a financial advisor to see what else you should know by this age.