There’s no doubt that your 20’s is a very special stage of your life. There’s a nervous but exciting feeling about becoming an adult, moving out of home, and being financially self-reliant. Whether you launched a career, a university degree, or spent time traveling the globe and gaining life experience, your 20’s is a critical decade from both a personal and financial point of view. Regardless of what path you choose, the one constant that will continually remain in your life is money.
The point of the matter is, the earlier you start saving money and creating wealth, the better your financial scenario will be in the future. Regardless of whether you want to get married, start a family, or secure a house, there are specific financial aspirations that every person in their 20’s should try to reach to secure a better a future. In this post, we’ll be taking a closer look at these goals and how you can start establishing healthy financial habits.
Make a budget
Constructing healthy financial habits starts 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 money by forming a budget and sticking to it! With a pen and paper, jot down your monthly income and expenditures. Take a look at your expenditures to see which can be lowered, or which can be cut out completely. A few ways to cut your expenditures are choosing to eat at home instead of eating out and transferring your Cable television subscription to streaming services like Netflix instead.
Get rid of your debts
Whether you’ve travelled the world or have student loan debts, the faster you repay these debts, the better. Interest compounds as time passes, so repaying your debts by cutting down expenditures or working a 2nd 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 instance, which will place you in a much better financial position than only making the minimal monthly repayments on your debts.
Create an emergency fund
Life rarely works out the way you planned, so itis imperative to be prepared for any sudden adjustments that might be necessitated. You might find yourself out of work, or in an unfortunate incident that hinders 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 advisors propose that all people should have a devoted emergency fund that can support their living expenses for 3 to 6 months.
Insurance protects you financially from any undesirable consequences, for example income insurance should you lose your job, health insurance for unpredictable medical expenses, and vehicle insurance in the event that your car is stolen. Though it’s not necessarily a good idea to get every form of insurance available, it’s definitely a wise idea to examine your individual circumstances to see which is best suited to you. For instance, health insurance is strongly recommended for everybody due to the high costs of uninsured medical treatment. Without insurance, an unplanned incident may cause 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 into investing this money in a high-interest term deposit. After you’ve got more money saved, think about purchasing 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 hardship, the best advice is to seek financial assistance as soon as possible. Lots of people struggle with financial troubles 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 require any assistance with your financial position, speak with the specialists at Bankruptcy Experts Cassowary Coast on 1300 795 575, or visit our website for further information: www.bankruptcyexpertscassowarycoast.com.au