|March 23, 2018||Comments Closed|
There’s no question that your 20’s is a very important phase of your life. There’s a timid but gratifying sensation about becoming an adult, leaving home, and being financially independent. Regardless if you launched a career, a university degree, or spent time traveling the globe and gaining life experience, your 20’s is a momentous decade from both a personal and financial point of view. Whichever path you go with, the one constant that will constantly remain in your life is money.
The fact of the matter is, the earlier you start saving money and creating wealth, the better your financial prospects will be in the future. Regardless of whether you wish to get married, start a family, or buy a home, there are particular financial aspirations that every individual in their 20’s should attempt to accomplish so as to secure a better a future. In this article, we’ll be taking a closer look at these goals and how you can start establishing healthy financial habits.
Create a budget
Establishing 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 finances by putting together a budget and sticking to it! With a paper and pen, jot down your monthly income and expenses. Study your expenditures to find out which can be reduced, or which can be cut out totally. Some ways to reduce your expenditures are opting to eat at home in lieu of eating in restaurants and swapping your Cable TV subscription to streaming services like Netflix instead.
Eliminate your debts
Whether you’ve travelled the world or have student loan debts, the quicker you repay these debts, the better. Interest compounds over time, so repaying your debts by cutting expenses or working a second job might save you thousands of dollars in only a number of 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 just making the minimum monthly repayments on your debts.
Establish an emergency fund
Life hardly ever works out the way you planned, so it’s important to be prepared for any sudden changes that might be required. You could end up 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 specialists recommend that all individuals should have a devoted emergency fund that is capable of supporting their living expenses for three to six months.
Insurance protects you financially from any undesirable consequences, for example income insurance in case you lose your job, medical insurance for unpredictable medical expenses, and vehicle insurance in the event that your car is stolen. Even though it’s not always advisable to get every form of insurance available, it’s certainly a clever idea to review your individual circumstances to see which is best suited to you. For example, medical insurance is recommended for everyone due to the high costs of uninsured medical treatment. Without insurance, an unplanned incident may lead to serious damage to your financial situation.
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, think about 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 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 as soon as possible
If, for whatever reason, you’ve found yourself in financial hardship, the best advice is to seek financial help as soon as possible. Lots of folks struggle with financial complications for years before finding help, which puts them in a worse position as their debts will only compound with time. The sooner you seek financial guidance, the more options are available to you, so if you need any guidance with your financial position, speak with the professionals at Bankruptcy Whitsundays on 1300 818 575, or visit our website for more information: http://www.bankruptcy-whitsundays.com.au/