by Valencia Higuera

Retirement isn’t right around the corner, but this doesn’t mean that young professionals should put off planning until their 30s. The earlier they start saving, the better off they’ll be.

1. PUTTING OFF STUDENT LOAN DEBT

Since student loan repayment doesn’t start until 6 to 9 months after graduating, some graduates don’t think about their debt. And once repayment starts, some opt to defer their loan payments for several years. This, however, is one of many common mistakes that young professionals make. Student loan interest accrues each year that the loan is in deferment or forbearance — adding to the total balance.

2. MOVING OUT TOO SOON

Once young professionals snag their first real job, moving out is usually the next thing on the list. However, moving out too soon can create financial hardship for some young professionals. They could end up living paycheck-to-paycheck, and have little cash for emergencies and savings. By staying home, there’s the opportunity to pay off any debt that accumulated while in college (credit cards and student loans), and increase their cash reserve.

3. TOO MUCH CREDIT CARD DEBT

If a young professional moves out, he or she may have little funds for furniture. As a result, she might rely on credit cards. Credit cards may also be used to purchase clothes for work. It’s okay to use credit cards — as long as balances are paid in full the following month, or within the next couple of months.

4. NOT UNDERSTANDING RETIREMENT OPTIONS

Retirement isn’t right around the corner, but this doesn’t mean that young professionals should put off planning until their 30s. The earlier they start saving, the better off they’ll be. Sadly, some young professionals don’t fully understand their retirement options, nor do they receive the advice they need. Therefore, some delay early planning.

5. SKIPPING LIFE INSURANCE

Similar to retirement planning, life insurance isn’t on the minds of some young professionals They feel that they have plenty of time to think about insurance. However, life happens, and if a young professional has a family, a spouse or debt, he or she needs to prepare accordingly. Maybe purchase a life insurance policy from a financial planner, or see if their employer offers any type of coverage.

6. NOT SAVING ENOUGH

Young adults enjoy a good time with friends, and when they’re having fun every weekend, they’re less likely to save their money. It’s important for young professionals to develop a good savings routine early. It’ll become second nature and they’ll build a nice nest egg for emergencies and other unexpected expenses. Ideally, they should stash 10% of every paycheck.

7. PUTTING KID’S EDUCATION OVER RETIREMENT PLANNING

Young professionals with children may start saving early for their kid’s college expenses. This ensures that there’s enough cash for college. However, they shouldn’t put their kid’s education over retirement planning. If they have to pick one over the other, they should choose retirement. The truth is, there are several ways to pay for college, but only a few options for retirement planning.

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Op-ed pieces and contributions are the opinions of the writers only and do not represent the opinions of Y!/YNaija.