|March 23, 2018||Comments Closed|
There’s no question that your 20’s is a very special period of your life. There’s a nervous but exhilarating sensation about becoming an adult, moving out of home, and being financially independent. Whether you kicked off a career, a university degree, or spent time traveling in foreign countries and gaining life experience, your 20’s is a vital decade from both a personal and financial context. No matter what path you choose, the one constant that will constantly remain in your life is money.
The reality of the matter is, the earlier you begin saving money and building wealth, the better your financial condition will be in the long term. Regardless of whether you plan to get married, start a family, or purchase a property, there are particular financial targets that every individual in their 20’s should attempt to achieve so as to secure a better a future. In this blog, we’ll be taking a closer look at these goals and how you can start building healthy financial habits.
Set up a budget
Establishing healthy financial habits starts with learning 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 pen and paper, list your monthly income and expenses. Inspect your expenditures to uncover which can be reduced, or which can be eliminated completely. A few ways to reduce your expenditures are choosing to eat at home as opposed to eating out and switching your Cable subscription to streaming services like Amazon instead.
Get rid of your debts
Regardless of whether you’ve travelled overseas or have student loan debts, the faster you repay these debts, the better. Interest compounds as time passes, so repaying your debts by slashing expenditures or working a 2nd job could save you thousands of dollars in only a few years. These savings can then be invested in a high-interest term deposit for instance, which will put you in a significantly better financial position than just making the minimal monthly repayments on your debts.
Start an emergency fund
Life hardly ever works out the way you planned, so it is very important to be prepared for any sudden adjustments that might be necessitated. You might end up out of work, or in an accident that stops you from working, so having an emergency fund will be able to give you some breathing space when you need it the most. Financial advisors strongly recommend that all folks should have a dedicated emergency fund that is capable of supporting their living expenses for 3 to 6 months.
Insurance protects you financially from any adversarial consequences, for instance income insurance should you lose your job, medical insurance for unplanned medical expenses, and vehicle insurance in case your car is stolen. Though it’s not always sensible to get every type of insurance available, it’s definitely a smart idea to assess your individual situation to see which is best suited to you. For instance, medical insurance is highly recommended for everyone due to the inflated costs of uninsured medical treatment. Without insurance, an unforeseen incident may result in substantial damage to your financial position.
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, look at investing this money in a high-interest term deposit. When you’ve got more money saved, consider purchasing a property, or investing in gold. The key to a sensible investment portfolio is ‘diversification’, meaning that you handle the risks of investment by putting your eggs in different baskets, so to say.
Get financial assistance as soon as possible
If, for whatever reason, you’ve found yourself in financial trouble, the best advice is to seek financial assistance immediately. Lots of people struggle with financial issues 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 assistance, the more options are available to you, so if you require any help with your financial position, talk to the specialists at Bankruptcy Northern Rivers on 1300 818 575, or visit our website for further information: https://www.bankruptcy-northernrivers.com.au/