Financial Milestones You Should Be Starting In Your Early 20s

Life Insurance

When you're in your 20s, it's easy to forget all about life insurance. After all, time is on your side! However, that's exactly why your 20s is a great time to acquire a whole life insurance policy. Whole life insurance is for the rest of your life, as opposed to term insurance, which is for a set period. Whole life is more expensive, but it also builds cash value you can then use as an asset later in life. Whole life is also very inexpensive when you are twenty-five compared to fifty-five, or even thirty-five. When you buy at the much cheaper rate for twenty-five-year-olds, you lock in that price in for life.

Additionally, many employee benefit programs provide life insurance. Most automatically provide enough for final expenses, though you may be able to purchase higher benefit amounts. If you are starting a family, consider how much they would need if the unexpected happened.

Finally, read on to reveal how thinking about retirement in your early 20s is fantastic.