|March 23, 2018||Comments Closed|
There’s no question that your 20’s is a very enjoyable period of your life. There’s a nervous but exhilarating feeling about becoming an adult, leaving home, and being financially independent. Whether or not you kicked off a career, a university degree, or spent time traveling the globe and gaining life experience, your 20’s is a significant decade from both a personal and financial context. No matter what path you choose, the one constant that will always remain in your life is money.
The point of the matter is, the earlier you start saving money and developing wealth, the better your financial scenario will be in the long term. Regardless of whether you intend to get married, start a family, or purchase a home, there are particular financial goals that every individual in their 20’s should attempt to achieve in order to secure a better a future. In this post, we’ll be taking a closer look at these goals and how you can begin establishing healthy financial habits.
Make a budget
Building healthy financial habits begins with knowing how to budget. Being able to spend less money than you make is the key to saving money, so start taking control of your finances by setting up a budget and following it! With a pen and paper, write down your monthly income and expenditures. Look over your expenditures to find out which can be cut down, or which can be eliminated altogether. Some ways to lessen your expenditures are choosing to eat at home instead of eating in restaurants and replacing your Cable television subscription to streaming services like Netflix instead.
Eradicate your debts
Whether you’ve travelled overseas or have student loan debts, the faster you repay these debts, the better. Interest compounds over time, so paying off your debts by cutting down expenses or working a second job might save you thousands of dollars in only a couple of years. These savings can then be invested in a high-interest term deposit for instance, which will put you in a much better financial position than merely making the minimal monthly repayments on your debts.
Build an emergency fund
Life hardly ever works out the way you planned, so it is essential to be prepared for any unforeseen adjustments that may be necessitated. You could find yourself unemployed, or in an accident that inhibits you from working, so having an emergency fund will be able to give you some breathing room when you need it the most. Financial advisors advise that all folks should have a dedicated emergency fund that is capable of supporting their living expenses for 3 to 6 months.
Insurance protects you financially from any undesirable consequences, for instance income insurance in the event you lose your job, medical insurance for unforeseen medical expenses, and vehicle insurance in the event your car is stolen. While it’s not always appropriate to get every form of insurance available, it’s certainly a wise idea to analyse your individual circumstances to see which is best suited to you. For example, medical insurance is strongly recommended for everyone due to the inflated costs of uninsured medical treatment. Without insurance, an unplanned incident may lead to serious damage to your financial position.
Invest in a diversified portfolio
If you’ve managed to save a specific amount of money that is otherwise sitting idle in the bank, look into investing this money in a high-interest term deposit. Once you’ve got more money saved, consider purchasing some property, or investing in gold. The key to a good investment portfolio is ‘diversification’, meaning that you handle the risks of investment by putting your eggs in different baskets, so to say.
Seek financial assistance immediately
If, for whatever reason, you’ve ended up in financial hardship, the best advice is to seek financial assistance as soon as possible. A lot of people struggle with financial issues for many years before finding help, which puts them in a worse position as their debts will only compound as time passes. The sooner you seek financial guidance, the more options are available to you, so if you require any help with your financial position, talk with the specialists at Bankruptcy Ipswich on 1300 818 575, or visit our website for additional information: http://www.bankruptcy-ipswich.com.au/