Although I just missed the cut off to be considered a member of the millennial generation, I know what their money mindset is. Most people in their 20’s are thinking about their future, but not financially. They assume after graduating college, they will get a decent paying job and everything will fall into place. That certainly isn’t the case.
It takes a lot of hard work to become successful and to get to the place you want to be in your life. It also involves strategy. Although many aren’t thinking 40 years ahead, it is almost necessary to do so. You won’t be working your whole life so must have a plan in place to replace your income once you can no longer work.
Creating some sort of a financial plan in your 20’s and 30’s will benefit you in the long run. The earlier you start saving (and even investing), the better. Although I mentioned in a previous post that the power of compounding is not completely realistic, it still exists. With a set interest rate, your money grows exponentially. Maybe you won’t get all of that money after taxes and fees, but, despite the fact, it is important to start earlier because you will end up having more in the end.
A myth I have come across interning in this industry is that young people don’t need life insurance. Anyone in their 20’s or 30’s reading this may be thinking “That’s crazy.” But if you truly think about it, starting young is more beneficial.
First off, you are generally healthier at a young age so you will be guaranteed a better rate. This is especially important in a whole life insurance policy because those low rates will remain the stagnant throughout your policy, even if your health changes. You will also be able to grow your cash value over a longer period of time by starting early.
Although it is something you may not be thinking about right now, it is definitely to your advantage to start planning for your financial future in your 20’s and 30’s because you will end up having more money when you are older and will be able to financially provide for your self beyond your career.