|March 23, 2018||Comments Closed|
There’s no question that your 20’s is a very enjoyable stage of your life. There’s a jittery but exciting feeling about becoming an adult, leaving home, and being financially self-reliant. Regardless of whether you launched a career, a university degree, or spent time traveling the world and gaining life experience, your 20’s is an important 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 truth of the matter is, the sooner you begin 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 home, there are various financial goals that every individual in their 20’s should endeavour to reach in order to secure a better a future. In this post, we’ll be taking a closer look at these targets and how you can start establishing healthy financial habits.
Construct a budget
Constructing healthy financial habits starts with knowing 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 establishing a budget and sticking to it! With a pen and paper, jot down your monthly income and costs. Study your expenses to uncover which can be decreased, or which can be removed altogether. Some ways to cut your expenses are electing to eat at home rather than eating out and switching your Cable subscription to streaming services like Netflix instead.
Eliminate your debts
Regardless if you’ve travelled abroad or have student loan debts, the quicker you repay these debts, the better. Interest compounds over time, so paying off your debts by slashing spendings or working a 2nd job could save you thousands of dollars in only a number 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.
Create an emergency fund
Life seldom works out the way you planned, so it is very important to be prepared for any unanticipated adjustments that might be needed. You might end up out of work, or in an unfortunate incident that stops 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 advise that all folks should have a dedicated emergency fund that can support their living expenses for three to six months.
Insurance protects you financially from any damaging consequences, for example income insurance should you lose your job, health insurance for unexpected medical expenses, and vehicle insurance in the event your car is stolen. Although it’s not always recommended to get every type of insurance available, it’s most certainly a wise idea to analyse your individual circumstances to see which is best suited to you. For instance, medical insurance is strongly recommended for everyone due to the inflated costs of uninsured medical treatment. Without insurance, an unplanned incident may cause significant damage to your financial situation.
Invest in a diversified portfolio
If you’ve managed to save a particular amount of money that is otherwise sitting idle in the bank, look into investing this money in a high-interest term deposit. When you’ve got more money saved, consider purchasing some property, or investing in gold. The key to a well-founded investment portfolio is ‘diversification’, meaning that you manage the risks of investment by putting your eggs in different baskets, so to say.
Get financial assistance as soon as possible
If, for whatever reason, you’ve ended up in financial turmoil, the best advice is to seek financial help immediately. Too many individuals 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 seek financial advice, the more options are available to you, so if you need any support with your financial position, talk with the professionals at Bankruptcy Lismore on 1300 818 575, or visit our website for additional information: https://www.bankruptcy-lismore.com.au/