|March 23, 2018||Comments Closed|
There’s no doubt that your 20’s is a very important period of your life. There’s a timid but gratifying feeling about becoming an adult, leaving home, and being financially independent. Regardless if you started a career, a university degree, or spent time traveling the world and gaining life experience, your 20’s is a momentous decade from both a personal and financial viewpoint. Regardless of what path you decide upon, the one constant that will consistently remain in your life is money.
The truth of the matter is, the sooner you begin saving money and creating wealth, the better your financial condition will be in the upcoming years. Regardless of whether you choose to get married, start a family, or buy a home, there are specific financial aspirations that every person in their 20’s should attempt to reach in order to secure a better a future. In this post, we’ll be taking a closer look at these objectives and how you can start building healthy financial habits.
Establish a budget
Building healthy financial habits begins 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 money by establishing a budget and sticking to it! With a paper and pen, write down your monthly income and expenses. Review your expenditures to see which can be reduced, or which can be cut out totally. A few ways to lessen your expenses are opting to eat at home rather than eating out and swapping your Cable TV subscription to streaming services like Amazon instead.
Eradicate 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 cutting expenses or working a second 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 as an example, which will put you in a considerably better financial position than only making the minimum monthly repayments on your debts.
Establish an emergency fund
Life seldom works out the way you planned, so it is very important to be prepared for any sudden changes that may be required. You might end up out of work, or in an incident that hinders 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 experts strongly 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 adversarial consequences, for instance income insurance should you lose your job, health insurance for unanticipated medical expenses, and vehicle insurance in case your car is stolen. While it’s not necessarily appropriate to get every type of insurance available, it’s undeniably a wise idea to review your individual circumstances to see which is best suited to you. For example, medical insurance is highly recommended for everyone due to the inflated costs of uninsured medical treatment. Without insurance, an unexpected 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, look at investing this money in a high-interest term deposit. After you’ve got more money saved, consider purchasing a property, or investing in gold. The key to a good investment portfolio is ‘diversification’, meaning that you handle the risks of investment by putting your eggs in different baskets, so to say.
Seek financial assistance immediately
If, for whatever reason, you’ve ended up in financial trouble, the best advice is to seek financial help as soon as possible. Too many folks struggle with financial issues for years before seeking help, which puts them in a worse position as their debts will only compound over time. The sooner you seek financial assistance, the more options are available to you, so if you need any help with your financial position, talk to the professionals at Bankruptcy Tablelands on 1300 818 575, or visit our website for further information: http://www.bankruptcy-tablelands.com.au/