6 Money Mistakes 20-somethings Make-and what to do about them

Life as a young adult can be no wrinkles, but it is not always pretty.

When asked Helaine Olen, personal finance columnist at Slate.com and author of The card Index , which it considers as one of the greatest obstacles to the well 20-Somethings to be ready financial students came to the front.

that many students today are forced to finance higher education through debt means they start adulthood waaaay in the red. But Olen said 20-Somethings can take heart in one thing: "People in their 20s do not make mistakes that are not always made by the elderly that they"

The! thing to remember is that time is on your side. that means you're young enough to recover from even the most spectacular financial failures. on the other hand, makes this good, informed decisions now can affect huge on your lifestyle in the coming decades

Be smart and avoid these six common missteps :.

1. Do not take the bull by the horns. "When you're just starting, you need to make a lot of decisions," says financial adviser Woody Derricks Partnership Wealth Management in Baltimore. "My grandmother said," Life can be frustrating when you're young, because you make the least amount of money and need the greatest amount of things. "Keep these two principles in mind you embrace the challenge:

• Protect your cash flow. Do not run up new debt, advises Derricks, and includes free loans on home furniture.
• Understanding the balance. It may be tight, but make sure to save for goals such as short-term capital needs and long-term emergency such as retirement, as well as maintaining adequate insurance protection.

2. Focusing too much on the repayment of student loans. Likes debt, but many financial advisers say there are actually other more important things at this point see "Understanding the balance" above.

"The worst thing people can do is to pay off their student loans and then in a situation where they have to run their 20% interest credit cards," says Derricks. In contrast, student loan debt is generally low interest and often tax deductible

Suffering from a disability that prevents you from not work ... can be financially catastrophic.

3. Do not have disability insurance. Suffering from a disability that prevents you from not work is much more likely to premature death, and it can be financially catastrophic, contributing to 62% of all personal bankruptcies, according to a study by the American Journal of Medicine. Yet only a third of Americans have a disability insurance, according to the insurance Barometer study 2016 by Life Happens and LIMRA. This type of insurance you pays part of your salary if you are sick or injured and unable to work.

If you think Social Security will intervene to help, think again. Claims take at least a year to treat, most requests are denied and the average payment if you qualify? Just $ 90 per month for less than 40 years, according to Social Security Administration.

Fortunately, "young people can often get the majority of disability insurance they need through work at very reasonable rates," said Derricks. In addition, private disability insurance coverage can fill the gaps, and you follow from job to job.

He cites the example of a young client whose work involved manual labor. "She became pregnant, and provided coverage throughout her pregnancy and the period originally thereafter. For her, it was really perfect for a short-term coverage."

4. not having enough life insurance. Regarding the group life insurance, most people need more than they can get through work, and they often qualify for better rates on their own. In fact, individual coverage costs much less than most people imagine, and it stays with you, regardless of a change of employment.

Even if you do not own a home or are not yet a burden, think of someone who would be financially affected by your death, especially any co-signer of a loan, which would become responsible for the refund. (Here are five reasons you might consider if you're single.)

Second, consider that life insurance will probably never be cheaper for you than it is today, and that insurability is ever given. Lock protection now and your future self may thank you one day.

5. Not taking advantage of your employer's benefits If your employer matches 401 (k) contributions, do not leave money on the table .. Contribute to least until the adaptation limit

and those drills survey deduction accounts payroll? Use them to set aside thousands of dollars each year for uncovered health expenses childcare, commuter parking and mass transit tax free ,. Will 2017 be your year of LASIK?

6. Succumbing to the wedding mania. "You want your wedding to be memorable," said Derricks, "but I went to a lot of things that were memorable and quite amazing and the couple did not overspend." Instead, think of your wedding day that you and your beloved first chance to avoid a major money mistake set .