Millennials may still feel quite young (despite those pesky grey hairs and less-than-fine lines), but in so many ways, we have "adulted". So it’s time for our money management to grow up a bit, too.
Your financial to-do list is small but mighty in your twenties. Setting up automatic transfers to a high-yield savings account, creating an emergency fund and paying down high-interest debt can take you quite far.
Now, you can do more to propel yourself to financial success in your forties and beyond.
Make use of a higher credit score
You don’t have to treat a high credit score like a precious work of art. Good credit can qualify you for better borrowing terms, so put that to work.
Try to cut back on the cost of borrowing.
“In terms of bang for your buck, refinancing is an important thing you should be doing,” says Priya Malani, founder and chief executive of Stash Wealth, a financial advisory in Charlotte, North Carolina.
“If you can move even a quarter of a per cent on a really large mortgage, that’s going to save you tens of thousands of dollars.”
Get a better deal on high-interest credit card debt. If your financial situation has improved, you may qualify for a balance transfer credit card offering a year or more at zero per cent interest.
If you don’t have credit card debt, but you’re still using that bare-bones card you got at 21, switch to a card that earns cash back or travel rewards.
In terms of bang for your buck, refinancing is an important thing you should be doing
Priya Malani,
founder and chief executive of Stash Wealth
However, leave that old credit card open and use it once in a while to keep it active. (The average age of your accounts is a factor in your credit score, and the older, the better.)
Match investments to a variety of goals
Here are two ways you can up the ante on your investing. First, if your employer offers a retirement plan with a match and you’ve been contributing just enough to get that match, consider contributing more.
A rule of thumb is to save 10 per cent to 15 per cent of your income towards retirement.
Next, plot out your intermediate-term goals for the next five to 15 years. You can invest for these goals using other kinds of accounts to help fund early retirement, save for your child’s education or plan for another large expense.
Money for short-term goals (within five years or less) shouldn’t be invested. Instead, a high-yield savings account is a more appropriate place to hold that money until you need it.
Think about how to improve your career — and your life
If you spent the start of your career rising and grinding, you probably had little energy to think about what kind of work – and life – would actually bring you the most joy. When you’re financially stable and advancing in your career, you can begin to think about what comes next for you.
You don’t need to wait for retirement to do the things you truly enjoy, says Shehara Wooten, certified financial planner and founder of Your Story Financial, a financial advisory firm in Dallas.
“You may even want to, if you’ve planned properly, take some time off,” she says. “If that’s not something you’re able to do, take some time to find out how you can get paid more, how you can really be appreciated for the work that you do.”
Ms Wooten also recommends seeking the help of a financial adviser to discuss what kind of lifestyle you want to have in retirement and the savings you need to accumulate to get there.
You may have a skill set that can translate to a higher-paying career, which will help you accomplish your goals more quickly.
Protect yourself and your loved ones
What worked when you were 25 and single isn’t going to cut it when you’re 35 with two kids and a mortgage. Here are some ways to protect your family:
Insurance: Ms Malani recommends a term life insurance plan if you own a home with someone else, someone is dependent on you for support or you have a co-signer on one of your loans.
Estate planning: Talk to an estate lawyer about crafting a will, identifying guardians for your children, appointing a medical power of attorney and other details.
Update beneficiaries: Revisit who you listed as your beneficiaries on your bank and investment accounts. If that information is outdated and you were to die, your money won’t go to the right person.
Donate to others
As your salary grows, it becomes easier to meet your needs and still have money left over each month. Some of that money can be budgeted toward meaningful causes.
Estate planning can also help you map out how you’d like to donate money or valuable possessions to charity.
“I like to have people write out their story and go to the end of their life,” Ms Wooten says. “What do you want that to look like? What do you want people to say about you? What do you want your legacy to entail?”
Most sought after workplace benefits in the UAE
- Flexible work arrangements
- Pension support
- Mental well-being assistance
- Insurance coverage for optical, dental, alternative medicine, cancer screening
- Financial well-being incentives
ESSENTIALS
The flights
Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.
The hotels
Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.
The tours
A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages.
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
match info
Maratha Arabians 138-2
C Lynn 91*, A Lyth 20, B Laughlin 1-15
Team Abu Dhabi 114-3
L Wright 40*, L Malinga 0-13, M McClenaghan 1-17
Maratha Arabians won by 24 runs
Four motivational quotes from Alicia's Dubai talk
“The only thing we need is to know that we have faith. Faith and hope in our own dreams. The belief that, when we keep going we’re going to find our way. That’s all we got.”
“Sometimes we try so hard to keep things inside. We try so hard to pretend it’s not really bothering us. In some ways, that hurts us more. You don’t realise how dishonest you are with yourself sometimes, but I realised that if I spoke it, I could let it go.”
“One good thing is to know you’re not the only one going through it. You’re not the only one trying to find your way, trying to find yourself, trying to find amazing energy, trying to find a light. Show all of yourself. Show every nuance. All of your magic. All of your colours. Be true to that. You can be unafraid.”
“It’s time to stop holding back. It’s time to do it on your terms. It’s time to shine in the most unbelievable way. It’s time to let go of negativity and find your tribe, find those people that lift you up, because everybody else is just in your way.”
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
MATCH INFO
Quarter-finals
Saturday (all times UAE)
England v Australia, 11.15am
New Zealand v Ireland, 2.15pm
Sunday
Wales v France, 11.15am
Japan v South Africa, 2.15pm
Expo details
Expo 2020 Dubai will be the first World Expo to be held in the Middle East, Africa and South Asia
The world fair will run for six months from October 20, 2020 to April 10, 2021.
It is expected to attract 25 million visits
Some 70 per cent visitors are projected to come from outside the UAE, the largest proportion of international visitors in the 167-year history of World Expos.
More than 30,000 volunteers are required for Expo 2020
The site covers a total of 4.38 sqkm, including a 2 sqkm gated area
It is located adjacent to Al Maktoum International Airport in Dubai South
Five personal finance podcasts from The National
To help you get started, tune into these Pocketful of Dirham episodes
·
Balance is essential to happiness, health and wealth
·
What is a portfolio stress test?
·
What are NFTs and why are auction houses interested?
·
How gamers are getting rich by earning cryptocurrencies
·
Should you buy or rent a home in the UAE?
Killing of Qassem Suleimani
What drives subscription retailing?
Once the domain of newspaper home deliveries, subscription model retailing has combined with e-commerce to permeate myriad products and services.
The concept has grown tremendously around the world and is forecast to thrive further, according to UnivDatos Market Insights’ report on recent and predicted trends in the sector.
The global subscription e-commerce market was valued at $13.2 billion (Dh48.5bn) in 2018. It is forecast to touch $478.2bn in 2025, and include the entertainment, fitness, food, cosmetics, baby care and fashion sectors.
The report says subscription-based services currently constitute “a small trend within e-commerce”. The US hosts almost 70 per cent of recurring plan firms, including leaders Dollar Shave Club, Hello Fresh and Netflix. Walmart and Sephora are among longer established retailers entering the space.
UnivDatos cites younger and affluent urbanites as prime subscription targets, with women currently the largest share of end-users.
That’s expected to remain unchanged until 2025, when women will represent a $246.6bn market share, owing to increasing numbers of start-ups targeting women.
Personal care and beauty occupy the largest chunk of the worldwide subscription e-commerce market, with changing lifestyles, work schedules, customisation and convenience among the chief future drivers.
WOMAN AND CHILD
Director: Saeed Roustaee
Starring: Parinaz Izadyar, Payman Maadi
Rating: 4/5
