|March 23, 2018||Comments Closed|
There’s no doubt that your 20’s is a very precious stage of your life. There’s a timid but fulfilling feeling about becoming an adult, leaving home, and being financially independent. Whether you launched a career, a university degree, or spent time traveling to other countries and gaining life experience, your 20’s is a significant decade from both a personal and financial point of view. No matter what path you go with, the one constant that will constantly remain in your life is money.
The point of the matter is, the earlier you begin saving money and creating wealth, the better your financial prospects will be in the upcoming years. Regardless of whether you want to get married, start a family, or secure a house, there are various financial goals that every person 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 objectives and how you can begin establishing healthy financial habits.
Create a budget
Creating healthy financial habits starts with learning 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 sticking to it! With a pen and paper, write down your monthly income and costs. Explore your expenses to uncover which can be lowered, or which can be removed altogether. A few ways to lessen your expenses are opting to eat at home in lieu of eating out and replacing your Cable subscription to streaming services like Netflix instead.
Get rid of your debts
Regardless of whether you’ve travelled abroad or have student loan debts, the quicker you repay these debts, the better. Interest compounds with time, so paying off your debts by cutting down 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 significantly better financial position than simply making the minimal monthly repayments on your debts.
Set up an emergency fund
Life seldom works out the way you planned, so it is very important to be prepared for any sudden changes that might be needed. You could 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 recommend that all individuals 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 detrimental consequences, for example income insurance should you lose your job, health insurance for sudden medical expenses, and vehicle insurance in case your car is stolen. Even though it’s not necessarily sensible to get every form of insurance available, it’s certainly a wise idea to examine your individual circumstances to see which is best suited to you. For example, medical insurance is recommended for everybody due to the high costs of uninsured medical treatment. Without insurance, an unplanned incident may result in considerable damage to your financial position.
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. Once you’ve got more money saved, contemplate buying some property, or investing in gold. The key to a well-founded investment portfolio is ‘diversification’, meaning that you deal with the risks of investment by putting your eggs in different baskets, so to say.
Seek financial help immediately
If, for whatever reason, you’ve found yourself in financial hardship, the best advice is to seek financial assistance as soon as possible. A lot of people battle with financial issues for many years before seeking help, which puts them in a worse position as their debts will only compound with time. The sooner you seek financial advice, the more options are available to you, so if you need any assistance with your financial position, get in touch with the professionals at Bankruptcy Experts Bendigo on 1300 795 575, or visit our website for further information: www.bankruptcyexpertsbendigo.com.au