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as everyone knows, can do a lot of things.

*Home: Home's that are located in working class neighborhoods and that need a little work can be affordable to a working 20 something. With as little as 2% down-payment and a steady job, a home in the 50K-100K range diverts rent money that would probably be paid anyway into a home that may appreciates in value and save capital. Most people have to live somewhere, so why not make a home out of it.

*Individual Retirement Account (IRA): Open one of these and throw away the key, just getting one is an accomplishment in the 20's. If this can be achieved, don't worry too much about meeting the maximum annual contribution, a few year later one might thank oneself and start contribution more to an already set up account.

If the above investments can be accomplished by age 29, one may be on track to bigger, more retirement related investments. It really isn't necessary to save for retirement in the 20's, but it is a good idea to invest in something. The following tips may help one focus on things like where to come up with down-payment money for a car or house, how to find good jewelry and a good education.

INVESTMENT AND DEBT MANAGEMENT TIPS FOR 20-29 YEAR OLDS:

*Save 5-10%: Just do it. 10% of one's beer money, music money, movie money, clothes money etc. can translate to 20% down the road and it doesn't hurt that much. This 5-10% can be used to fund an IRA, a down-payment on a good car, or any other kind of investment.

*Avoid Credit Card Debt: It may not seem a lot at first, but credit card debt can pile up before long. Pretty soon afterward, debt can get out of control.

*Transfer Credit From Community College: Since community colleges are cheaper, it can dramatically lower the cost of a University education to transfer credits from a community college.

*Live at Home: Living at home may not be ideal, but just a year or two of living at home while working can lead to potentially large savings especially if the parents don't charge full or any rent.

*Talk with Jewelry Appraiser(s): Chatting with Jewelry appraisers who love gems, and precious metals can be interesting and informative. They can inform one of the best jewelry and where to get it. Theoretically, any jewelry is an investment, but some jewelry can be a better deal and hold value better.

*Surf the Internet: The Internet has lots of car listings and automobile advise. Searching for a list of cars that retain value will help one buy a 'set of wheels' that last a long time and keep their value. Not only could such a car cost less in maintenance, it could pay back a little when it's time to trade in or sell.

*Ask Parents: It's not always fun asking parents for advice, but they do know things sometimes. If one grew up in a house, a parent may be able to help with understanding the mortgage process and what is required. Mortgage loan officers at mortgage banks can also provide details of what is required.

Financial planning in the 20's involves investing, debt management and a little fiscal responsibility, but the responsibility doesn't have to be painful and it may be a benefit down the road. Sometimes in the 20's or 30's life might have a few unpleasant surprises, the dream job may not pull through, one's plans may not turn out as expected. By investing and thinking about investing, one is preparing the mind for the future of life.

Source:

http://money.cnn.com/20 05/10/03/Autos/tipsandadvice/k bb_resale_value_awards/index.h tm

Learn more about this author, A.W. Berry.
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