|March 23, 2018||Comments Closed|
There’s no question that your 20’s is a very enjoyable phase of your life. There’s a jittery but exciting feeling about becoming an adult, moving out of home, and being financially self-reliant. Whether or not you kicked off a career, a university degree, or spent time traveling in foreign countries and gaining life experience, your 20’s is a meaningful decade from both a personal and financial context. Whatever path you decide upon, the one constant that will continually remain in your life is money.
The fact of the matter is, the earlier you begin saving money and generating wealth, the better your financial condition will be in the long term. Regardless of whether you intend to get married, start a family, or secure a property, there are particular financial aspirations that every individual in their 20’s should endeavour to achieve to secure a better a future. In this post, we’ll be taking a closer look at these goals and how you can start building healthy financial habits.
Make a budget
Developing healthy financial habits starts with learning how to budget. Being able to spend less money than you earn is the key to saving money, so start taking control of your finances by forming a budget and following it! With a pen and paper, write down your monthly income and costs. Examine your expenditures to see which can be cut down, or which can be removed altogether. Some ways to reduce your expenditures are opting to eat at home in lieu of eating in restaurants and transferring your Cable subscription to streaming services like Amazon instead.
Get rid of your debts
Regardless if you’ve travelled the globe or have student loan debts, the faster you repay these debts, the better. Interest compounds with time, so paying off your debts by cutting spendings 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 example, which will put you in a significantly better financial position than just making the minimum monthly repayments on your debts.
Create an emergency fund
Life rarely works out the way you planned, so it is very important to be prepared for any abrupt adjustments that might be necessitated. You may find yourself out of work, or in an accident that prevents you from working, so having an emergency fund will be able to give you some breathing room when you need it the most. Financial specialists propose that all individuals should have a devoted emergency fund that is capable of supporting their living expenses for 3 to 6 months.
Insurance protects you financially from any adversarial consequences, for instance income insurance should you lose your job, health insurance for unexpected medical expenses, and vehicle insurance in the event that your car is stolen. Although it’s not necessarily a good idea to get every type of insurance available, it’s undeniably a wise idea to analyse your individual circumstances to see which is best suited to you. For example, health insurance is strongly recommended for everyone due to the high costs of uninsured medical treatment. Without insurance, an unexpected incident may cause serious 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, consider investing this money in a high-interest term deposit. When you’ve got more money saved, think about buying some property, or investing in gold. The key to a solid investment portfolio is ‘diversification’, meaning that you manage the risks of investment by putting your eggs in different baskets, so to say.
Get financial help as soon as possible
If, for whatever reason, you’ve ended up in financial trouble, the best advice is to seek financial help as soon as possible. Lots of folks struggle with financial troubles for years before seeking help, which puts them in a worse position as their debts will only compound as time passes. The sooner you get financial advice, the more options are available to you, so if you require any help with your financial position, speak with the professionals at Bankruptcy Bundaberg on 1300 818 575, or visit our website for more information: http://www.bankruptcy-bundaberg.com.au/