Money Tip of the Week: Learn these 7 financial skills by age 30
In his early 20s, CNBC Make It Money reporter Mike Winters wasn’t interested in managing his finances beyond paying down a growing credit card balance. Learning about money was intimidating, he says.
“That’s a shame, because back then all I really needed to know were some of the basics,” he wrote in a recent article.
With that in mind, Winters spelled out a financial to-do list he wishes he’d completed by the time he was 30. How many have you checked off?
1. Write a budget. Without one, it’s difficult to keep track of your spending and stay out of debt.
2. Build an emergency fund. The average emergency costs $1,400, according to a survey from LendingTree. Set $54 aside from each biweekly paycheck to get there in a year.
3. Know how interest works. Buying an investment that earns 10% isn’t as beneficial as paying down a credit card charging 20%.
4. Keep tabs on your credit score. You’ll need a good one to qualify for loans and to get the best rates.
5. Be smart and savvy with credit cards. Pay them off in full each month and take advantage of valuable perks and rewards.
6. Start investing for retirement. The earlier you begin, the longer compounding interest has to work its magic.
7. Buy the right insurance. It protects you from large, unexpected expenses that can derail your financial plans.
