|March 23, 2018||0|
There’s no doubt that your 20’s is a very unique stage of your life. There’s a jittery but exhilarating feeling about becoming an adult, leaving home, and being financially independent. Regardless if you began a career, a university degree, or spent time traveling the world and gaining life experience, your 20’s is a valuable decade from both a personal and financial viewpoint. Regardless of what path you decide upon, the one constant that will consistently remain in your life is money.
The truth of the matter is, the sooner you begin saving money and creating wealth, the better your financial scenario will be in the years to come. Regardless of whether you plan to get married, start a family, or buy a house, there are various financial objectives that every individual in their 20’s should endeavour to reach so as to secure a better a future. In this article, we’ll be taking a closer look at these targets and how you can begin creating 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 putting together a budget and sticking to it! With a paper and pen, write down your monthly income and costs. Inspect your expenses to uncover which can be cut down, or which can be cut out entirely. A few ways to cut your expenditures are opting to eat at home rather than eating out and swapping your Cable subscription to streaming services like Amazon instead.
Eliminate your debts
Regardless of whether 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 expenditures or working a 2nd job could 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 place you in a substantially better financial position than merely making the minimal monthly repayments on your debts.
Establish an emergency fund
Life rarely works out the way you planned, so it is vital to be prepared for any sudden adjustments that may be necessitated. You might end up out of a job, or in an incident that inhibits you from working, so having an emergency fund will be able to give you a bit of breathing space when you need it the most. Financial specialists strongly recommend that all individuals should have a devoted emergency fund that can support their living expenses for 3 to 6 months.
Insurance protects you financially from any detrimental consequences, for instance income insurance in the event you lose your job, health insurance for unforeseen medical expenses, and vehicle insurance in the event that your car is stolen. Even though it’s not always wise to get every type of insurance available, it’s undeniably a wise idea to examine your individual circumstances to see which is best suited to you. For instance, health insurance is recommended for everybody due to the high costs of uninsured medical treatment. Without insurance, an unexpected incident may result in considerable 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 at investing this money in a high-interest term deposit. After you’ve got more money saved, consider buying a property, or investing in gold. The key to a sensible investment portfolio is ‘diversification’, meaning that you regulate the risks of investment by putting your eggs in different baskets, so to say.
Seek financial help as soon as possible
If, for whatever reason, you’ve ended up in financial hardship, the best advice is to seek financial help as soon as possible. Too many people struggle with financial complications for years before finding help, which puts them in a worse position as their debts will only compound over time. The sooner you get financial assistance, the more options are available to you, so if you require any support with your financial condition, speak to the professionals at Bankruptcy Geelong on 1300 818 575, or visit our website for further information: http://www.bankruptcy-geelong.com.au/