|March 23, 2018||Comments Closed|
There’s no doubt that your 20’s is a very cherished period of your life. There’s an anxious but gratifying feeling about becoming an adult, moving out of home, and being financially self-reliant. Whether or not you launched a career, a university degree, or spent time traveling overseas and gaining life experience, your 20’s is a momentous decade from both a personal and financial perspective. Regardless of what path you go with, the one constant that will continually remain in your life is money.
The fact of the matter is, the sooner you start saving money and building wealth, the better your financial scenario will be in the upcoming years. Regardless of whether you wish to get married, start a family, or buy a property, there are specific financial aspirations that every person in their 20’s should endeavour to accomplish in order to secure a better a future. In this article, we’ll be taking a closer look at these goals and how you can start constructing healthy financial habits.
Create a budget
Building healthy financial habits begins with understanding 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 constructing a budget and following it! With a pen and paper, jot down your monthly income and expenditures. Review your expenses to uncover which can be decreased, or which can be removed entirely. Some ways to lessen your expenditures are opting to eat at home instead of eating out and switching your Cable TV subscription to streaming services like Amazon instead.
Get rid of your debts
Regardless if you’ve travelled overseas or have student loan debts, the quicker you repay these debts, the better. Interest compounds as time passes, so paying off your debts by slashing expenses or working a 2nd job may save you thousands of dollars in only a number of years. These savings can then be invested in a high-interest term deposit as an example, which will place you in a much better financial position than just making the minimal monthly repayments on your debts.
Create an emergency fund
Life almost never works out the way you planned, so it is vital to be prepared for any sudden adjustments that might be needed. You might find yourself unemployed, or in an unfortunate incident that inhibits you from working, so having an emergency fund will be able to give you a bit of breathing room when you need it the most. Financial experts recommend that all individuals should have a devoted emergency fund that is capable of supporting their living expenses for three to six months.
Insurance protects you financially from any adversarial consequences, for example income insurance should you lose your job, medical insurance for unexpected medical expenses, and vehicle insurance in the event that your car is stolen. Even though it’s not always recommended to get every form of insurance available, it’s undoubtedly a wise idea to analyse your individual circumstances to see which is best suited to you. For instance, health insurance is strongly recommended for everyone due to the inflated costs of uninsured medical treatment. Without insurance, an unforeseen incident may lead to significant damage to your financial situation.
Invest in a diversified portfolio
If you’ve been able to save a particular amount of money that is otherwise sitting idle in the bank, look at investing this money in a high-interest term deposit. After you’ve got more money saved, think about buying 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 as soon as possible
If, for whatever reason, you’ve found yourself in financial trouble, the best advice is to seek financial help as soon as possible. A lot of folks battle with financial issues for years before getting help, which puts them in a worse position as their debts will only compound over time. The sooner you seek financial guidance, the more options are available to you, so if you need any guidance with your financial condition, speak to the professionals at Bankruptcy Gympie on 1300 818 575, or visit our website for further information: http://www.bankruptcy-gympie.com.au/