When you turn 25, it’s important to start looking toward the future and planning to set a solid foundation. If you have no idea where to start, read on. Outlined are three important things that all 25-year-olds need to know about finances in order to secure their futures.
The Safety of Your Finances Online Is Important
In this digital age that we live in, it has become easier and faster to manage our finances. This ease, however, comes with tangible risk as far as safety is concerned. With data breaches having exposed more than four billion records in the first half of 2019 alone, according to researchers, it’s a risk we must all be aware of. However, it’s good to keep in mind that even if you do experience a hacking attempt on your bank account, you will likely not lose your money. This is if you notify your bank immediately and stay calm throughout the entire process.
Some signs that you may have been hacked include unexplained payments and closure of your bank account, an email or call from someone demanding more information, or even a large transaction that empties out your account. When you experience any of these, remain calm and notify your bank’s fraud department about it immediately you find out. If money has been stolen, submit a claim for it and cancel any debit or credit cards that have been compromised. You could also consider closing your bank account and opening a fresh one for which you will set up brand new pins and passwords for added security.
Good Health Insurance Is Your Responsibility
Getting good health insurance for yourself is another important thing to start thinking about when you turn 25. This is because you will probably no longer be covered by your parents’ health insurance after you’re 26 years old and will have to stand on your own. To avoid any issues you cannot possibly foresee, start to look for a cover of your own just as you turn 26, and make it a birthday gift to yourself.
You could either enroll in your employer’s group plan, if this is an option that’s available to you, or you could shop for an individual plan, especially if you’re self-employed or unemployed. You could also find a short-term health plan or buy coverage from an insurance firm with the help of an agent or broker. With 54% of Americans who are insured reporting that they were either sometimes confused or always confused by medical bills, you stand to benefit from working with a professional who will explain the complexities to you.
Estate Planning Should Be a Priority
Finally, it’s important to plan your estate no matter your occupation or state. This is because you have no idea about what could happen in the future, and having a good estate plan can help save you from unforeseen situations. In the unfortunate event that you pass away or end up in a medical situation, having an estate plan can save your spouse, family, and friends a lot of time and resources.
Since 2020, the number of young adults who have a will to their name has gone up by 63%. This shows that more people are seeing the importance of having a will and other estate plans in place. You can either get a will for the living, which will consist of three parts, namely a durable power of attorney, a healthcare proxy, a living will, or end-of-life will. Working with an expert will help you find out the best options for you and make it easier to make a good decision.
When you keep these three things in mind, you will be a master of finance as you grow older, so work on them as soon as you’re able to form the best future.