The dramatic increase of health insurance premiums coming in 2014 certainly won't help the situation, with increases expected to range 50% - 300%. These increases will bring a slew of mid 20's and 30's individuals to take the penalty in 2014 and forego health insurance. If they don't take the penalty, they will take the increase, then what? More debt!
Here are a few pointers to help fix your young adult years. The ability to sleep at night knowing you are living a "comfortable" lifestyle, debt free!
1. Pay off your nonmortgage debt. Your thirties bring financial responsibilities you may not have had in your twenties, such as a mortgage or a family. Nothing frees up cash to meet those obligations like getting rid of your debt. Hopefully you paid off your credit cards in your twenties (if you didn't, make it a top priority). Next, focus on getting rid of student loans and other nonmortgage debt, such as auto loans.
2. Kick the debt cycle altogether. What good is it to pay off your loans only to take out another one and rack up more debt? An easy way to save for big-ticket items, and avoid going back into debt, is to put money you would have used for monthly debt payments, car payments, and interest charges into a savings account. For instance, after you make that final $300-per-month auto loan payment, keep making an equal payment to yourself. After one year, you'll have $3,600 saved.
3. Get serious about retirement. Your twenties were the time to start investing. No matter how little money you had to spare, it gave you a great head start. Now it's time to look at your goals and set a plan in motion to reach them.
