|March 23, 2018||Comments Closed|
There’s no question that your 20’s is a very important phase of your life. There’s a jittery but gratifying feeling about becoming an adult, moving out of home, and being financially self-reliant. Whether you started a career, a university degree, or spent time traveling abroad and gaining life experience, your 20’s is a meaningful decade from both a personal and financial viewpoint. Regardless of what path you go with, the one constant that will always remain in your life is money.
The truth of the matter is, the earlier you begin saving money and building wealth, the better your financial condition will be in the future. Regardless of whether you choose to get married, start a family, or secure a home, there are a number of financial targets that every individual in their 20’s should strive to reach so as to secure a better a future. In this post, we’ll be taking a closer look at these objectives and how you can begin building healthy financial habits.
Make a budget
Building healthy financial habits starts with understanding how to budget. Being able to spend less money than you earn is the key to saving money, so start taking control of your finances by making a budget and following it! With a pen and paper, list your monthly income and expenses. Review your expenditures to find out which can be cut down, or which can be eliminated entirely. Some ways to cut your expenses are opting to eat at home in lieu of eating in restaurants and transferring your Cable TV subscription to streaming services like Netflix instead.
Eliminate your debts
Whether or not you’ve travelled the world or have student loan debts, the quicker you repay these debts, the better. Interest compounds as time passes, so repaying your debts by cutting expenditures 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 for example, which will put you in a substantially better financial position than just making the minimal monthly repayments on your debts.
Start an emergency fund
Life seldom works out the way you planned, so it is essential to be prepared for any unanticipated changes that might be required. You could end up out of work, or in an incident that prevents 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 propose 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 adverse consequences, for instance income insurance in the event you lose your job, health insurance for unforeseen medical expenses, and vehicle insurance in case your car is stolen. While it’s not always beneficial to get every type of insurance available, it’s definitely a wise idea to evaluate your individual situation to see which is best suited to you. For instance, health insurance is recommended for everybody due to the inflated costs of uninsured medical treatment. Without insurance, an unanticipated incident may cause substantial damage to your financial position.
Invest in a diversified portfolio
If you’ve managed to save a specific 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, think about purchasing a property, or investing in gold. The key to a well-founded investment portfolio is ‘diversification’, meaning that you regulate the risks of investment by putting your eggs in different baskets, so to say.
Get financial assistance immediately
If, for whatever reason, you’ve ended up in financial trouble, the best advice is to seek financial assistance as soon as possible. Too many people wrestle with financial complications for several years before seeking help, which puts them in a worse position as their debts will only compound as time passes. The sooner you seek financial advice, the more options are available to you, so if you need any support with your financial condition, get in contact with the specialists at Bankruptcy Wyong on 1300 818 575, or visit our website for further information: http://www.bankruptcy-wyong.com.au/