|January 23, 2018||Comments Closed|
There’s no doubt that your 20’s is a very important phase of your life. There’s an anxious but fulfilling feeling about becoming an adult, leaving home, and being financially self-reliant. Whether or not you launched 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. Whatever path you go with, the one constant that will continually remain in your life is money.
The fact of the matter is, the sooner you start saving money and generating wealth, the better your financial prospects will be in the future. Regardless of whether you plan to get married, start a family, or secure a property, there are a number of financial targets that every individual in their 20’s should endeavour to achieve in order to secure a better a future. In this article, we’ll be taking a closer look at these objectives and how you can begin constructing healthy financial habits.
Make a budget
Building 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 constructing a budget and sticking to it! With a paper and pen, write down your monthly income and costs. Explore your expenditures to find out which can be reduced, or which can be removed completely. Some ways to lessen your expenses are opting to eat at home as opposed to eating in restaurants and swapping your Cable television subscription to streaming services like Netflix instead.
Eradicate your debts
Whether or not you’ve travelled the world or have student loan debts, the faster you repay these debts, the better. Interest compounds over time, so repaying your debts by slashing expenses or working a 2nd job might save you thousands of dollars in only a few years. These savings can then be invested in a high-interest term deposit as an example, which will place you in a much better financial position than only making the minimal monthly repayments on your debts.
Start an emergency fund
Life almost never works out the way you planned, so it is very important to be prepared for any sudden changes that may be needed. You could end up unemployed, or in an accident that hinders you from working, so having an emergency fund will be able to give you some breathing room when you need it the most. Financial experts recommend that all people 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 sudden medical expenses, and vehicle insurance in the event your car is stolen. While it’s not always beneficial to get every type of insurance available, it’s most certainly a wise idea to examine your individual situation to see which is best suited to you. For instance, medical insurance is recommended for everyone due to the high costs of uninsured medical treatment. Without insurance, an unanticipated incident may lead to 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. Once you’ve got more money saved, think about buying a property, or investing in gold. The key to a well-founded investment portfolio is ‘diversification’, meaning that you handle 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 distress, the best advice is to seek financial help immediately. Lots of folks struggle with financial troubles for several years before seeking help, which puts them in a worse position as their debts will only compound over time. The sooner you get financial advice, the more options are available to you, so if you need any help with your financial condition, speak to the professionals at Bankruptcy Bendigo on 1300 818 575, or visit our website for further information: https://www.bankruptcy-bendigo.com.au/