|March 23, 2018||0|
There’s no question that your 20’s is a very enjoyable period of your life. There’s a jittery but gratifying feeling about becoming an adult, moving out of home, and being financially self-reliant. Regardless of whether you kicked off a career, a university degree, or spent time traveling overseas and gaining life experience, your 20’s is a momentous decade from both a personal and financial perspective. Whichever path you choose, the one constant that will consistently remain in your life is money.
The reality of the matter is, the sooner you begin saving money and building 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 purchase a house, there are particular financial targets that every individual in their 20’s should endeavour to accomplish to secure a better a future. In this post, we’ll be taking a closer look at these objectives and how you can begin developing healthy financial habits.
Make a budget
Establishing healthy financial habits begins 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 money by making a budget and following it! With a paper and pen, write down your monthly income and expenditures. Inspect your expenses to uncover which can be reduced, or which can be removed entirely. A few ways to cut down your expenditures are opting to eat at home rather than eating in restaurants and swapping your Cable TV subscription to streaming services like Netflix instead.
Remove your debts
Whether or not you’ve travelled abroad or have student loan debts, the quicker you repay these debts, the better. Interest compounds as time passes, so repaying your debts by reducing expenses 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 example, which will put you in a considerably better financial position than simply making the minimum monthly repayments on your debts.
Develop an emergency fund
Life almost never works out the way you planned, so it’s important to be prepared for any unexpected changes that may be required. You might find yourself out of work, or in an incident that inhibits you from working, so having an emergency fund will be able to give you a bit of breathing room when you need it the most. Financial specialists advise that all individuals should have a dedicated emergency fund that can support their living expenses for three to six months.
Insurance protects you financially from any adverse consequences, for example income insurance in the event you lose your job, medical insurance for unplanned medical expenses, and vehicle insurance in the event that your car is stolen. While it’s not always sensible to get every kind of insurance available, it’s certainly a wise idea to analyse your individual circumstances to see which is best suited to you. For example, health insurance is highly recommended for everyone due to the high costs of uninsured medical treatment. Without insurance, an unplanned incident may result in significant damage to your financial position.
Invest in a diversified portfolio
If you’ve managed to save a particular amount of money that is otherwise sitting idle in the bank, think about investing this money in a high-interest term deposit. After you’ve got more money saved, contemplate purchasing a property, or investing in gold. The key to a sound investment portfolio is ‘diversification’, meaning that you deal with the risks of investment by putting your eggs in different baskets, so to say.
Get financial help immediately
If, for whatever reason, you’ve found yourself in financial trouble, the best advice is to seek financial help as soon as possible. Too many people battle with financial complications for several years before finding help, which puts them in a worse position as their debts will only compound with time. The sooner you get financial advice, the more options are available to you, so if you require any support with your financial condition, talk to the professionals at Bankruptcy Dubbo on 1300 818 575, or visit our website for more information: http://www.bankruptcy-dubbo.com.au/