What money moves should you make in your 20s — and what should you avoid doing? Rhiannon Payne, editor in chief of Feminspire, reached out with a fabulous guest post on this very topic. I think her tips are solid however old you are, particularly if you’re just starting a new career with more money (like I was at 27, my first year in BigLaw). Thank you for guest posting, Rhiannon! (Pictured: Lodis Accessories Audrey Cassie Cell Case with Wristlet, available at 6pm for $36.99.)
So you’ve finally landed that amazing job, the one that pays you enough to not only cover your rent and other basic expenses, but also affords you the luxury of having money left over – money that you’re not sure what to do with. The options seem limitless. While you once had to count up the pennies in your change jar if you wanted to buy a new outfit, you’re suddenly thinking about all the exciting ways you can improve your life with your new funds. Things you would have never considered are suddenly options – a tablet for working on the go? A newer, shinier car to replace your old model? The fancier silverware sets from Bed Bath & Beyond?
This is a trap that a lot of young people fall into, especially when entering the workforce after college or going straight into the professional world in their early 20s (the latter was me – I set my sights on an industry where a degree was more of an option than a requirement, and I didn’t want to risk a negative ROI on my tuition). Unfortunately, the financial education provided to American students, in both high school and college, is generally pretty limited. When a young person starts earning a healthy income, they often have no idea what to do with their money. Thus, some unfortunate financial decisions usually occur. This is especially true for women, who not only make less (on average, $0.77 to the dollar) than men, but are traditionally given even less financial guidance than their male peers. [Read more...]