5 Things Before Age 25

It seems like time passes by so quickly now.  We can all look back and realize that we were once 20 and now we are not.  Life sneaks up on you quickly and when it does, you find yourself doing the adult things that you once saw your parents doing.  Being an adult is not easy.  It is a very hard task.  It is easy to forget the simple things you should have in place as an adult to ensure that your present and future will be taking care of.  I have five things that should be in order by the time you turn 25 years old.  Some of these should be done sooner.

A Will

It is time to put your big girl and big boy undies on.  By the age of 25, most people will not have secured any assets to determine if they need a will.  If you have, then you should develop a will to ensure your property is distributed according to your wishes.  Leave plans for how you want your personal items handled.  You should also leave plans on how you would like your final burial to be conducted.  This should NOT be included in a legal will.  You should leave this with someone that you trust will facilitate your final burial properly so they will have immediate access to it as well as access to your life insurance documents.  This will take the stress off of your loved one from having to figure these things out for you.

Life Insurance

There was once a time where one did not need to secure life insurance so early in life.  However, death waits for no one and there is no special age limit that qualifies you for death.  You can die at any age.  Today, a funeral can cost you nearly $15,000.  Your family and loved ones will likely not have this type of money sitting around waiting for you.  You should definitely invest in term life insurance.  Term life insurance is cheap and will provide you a nominal amount of coverage to cover a lovely burial for you.  Visit here for additional resources for obtaining life insurance.

You can find a decent accidental death policy for about $10.00 a month from providers like Mutual of Omaha or Allstate. These type of policies will cover all accidental deaths including deaths resulting from crime. Your automobile insurer likely has partnership with companies that can also provide you with leads on great life insurance providers.  Of course, you can get life insurance through your job, but if this option is not available for you, then please take action and get some for yourself and your dependents.  No one should have to fret and stress over determining how they will bury you or how you will bury your dependents.  Be responsible and sacrifice a night out or a combo meal once a month and invest it someplace that counts.

A Savings Plan

You should have a savings plan in place by the time you turn 25.  I always agree that no matter how much money a person makes, they always have room to save.  Even if you only make $100 a month, save 50 cent.  Develop a savings plan and commit to it.  You should create a savings account that you do not have direct access to.  Set up an amount that you can afford to save after expenses and let your savings account grow.  The best thing is to have a certain amount automatically debited from your checking account every month.  For additional ideas on saving money, visit www.feedthepig.org.

Also create a savings plans to make big ticket purchases so that you can avoid developing debt over purchases like furniture, car repairs, etc.  If you discover that you don’t have enough to save after your expenses, then you must consider your expenses.

A Debt Free Agenda

As you are crossing over the age of 25, now is the time to focus on planning out your financial future.  Although financial planning should start as soon as you begin earning income which is normally well before 25, you should be strongly focusing on how to ensure you will be okay in retirement.  You should start considering the debt that you have accumulated and start planning ways to resolve this debt within the next 10 years, depending on the amount of debt you have.

Also, develop a mentality and a goal not to accrue additional debt going forward.  Your goal is to achieve a debt free lifestyle to where your only debts are large items like your car, house, and possibly student loans.  Your 20’s are considered your “compounding” years.  This is the time where your earning potential has the most potency as it concerns Returns on Investment.  If you are working, you should also be considering investing in 401k programs and ROTH IRAs and Roth 401Ks to counteract any debt you have accrued and are accruing.

Drive Your Cash Flow

By the time you turn 25 years of age, you should be thinking like a master entrepreneur.  You should always be seeking out ways to increase your personal income and revenue.  The way a business thrives is by 1)lowering cost and 2)increasing sales.  This positively benefits their profit and loss statement or income statement. Threat your lifestyle like a business.  You should start off with how much money you earn and then reduce it by the cost of your debts and other “operating” expenses, which in your case would be living expenses.  Your bottom line will reflect how well you are doing.  Examine your bottom line and always consider how you can increase that number.  You can increase it by either maximizing your income potential or you can increase it by decreasing your expenses and output.

In most cases, your job will be your number one source of capital.  Ensure that you are investing in your work so that you can always maximize your earning potential through promotions and career objectives.  You should also consider other ways that you can create income for your “business”.  Create income for yourself monetizing your gifts and talents.  Ultimately, most start a business so that they can work for themselves eventually, but if you consider starting a business as way to supplement your income, the business will be much more fulfilling to you.  It’ll eventually grow to a place where you can quit your day job.  However if that will significantly decrease your cash flow to an uncomfortable place, then quitting your day job is not advised.

Wrapping It Up

We spent most of this article talking about financial duties that should be implemented by the time you turn 25.  This is because your financial health is going to determine how great of a life you will have going forward.  There are plenty of other things someone should consider having in place by the time they turn 25.  Those will depend on the individual.  Consider additional areas and jot those down and comment what your recommendations would be.  Also keep in mind that if you are already beyond 25, it is never too late to start tackling these objectives.  These are 5 things before age 25 that can be implemented at any age.


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