|March 23, 2018||Comments Closed|
There’s no question that your 20’s is a very memorable period of your life. There’s a jittery but exhilarating sensation about becoming an adult, moving out of home, and being financially self-reliant. Regardless of whether you launched a career, a university degree, or spent time traveling to other countries and gaining life experience, your 20’s is a critical decade from both a personal and financial context. Whichever path you decide upon, the one constant that will always remain in your life is money.
The truth of the matter is, the sooner you start saving money and creating 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 secure a property, there are various financial goals that every person in their 20’s should endeavour to reach so as to secure a better a future. In this post, we’ll be taking a closer look at these goals and how you can begin developing healthy financial habits.
Set up a budget
Developing healthy financial habits starts with discovering 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 constructing a budget and following it! With a paper and pen, document your monthly income and costs. Analyse your expenditures to find out which can be reduced, or which can be removed altogether. A few ways to cut down your expenses are electing to eat at home as opposed to eating out and swapping your Cable television subscription to streaming services like Netflix instead.
Eliminate your debts
Whether you’ve travelled abroad or have student loan debts, the faster you repay these debts, the better. Interest compounds with time, so paying off your debts by cutting expenditures or working a 2nd 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 for instance, which will put you in a considerably better financial position than just making the minimum monthly repayments on your debts.
Start an emergency fund
Life rarely works out the way you planned, so it is crucial to be prepared for any unanticipated changes that might be needed. You might find yourself out of work, or in an accident that stops 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 advise that all folks should have a devoted emergency fund that can support their living expenses for three to six months.
Insurance protects you financially from any adversarial consequences, for example income insurance in the event you lose your job, health insurance for sudden medical expenses, and vehicle insurance in the event your car is stolen. Though it’s not necessarily wise to get every form of insurance available, it’s definitely a clever idea to assess your individual situation to see which is best suited to you. For example, medical insurance is strongly recommended for everybody due to the inflated costs of uninsured medical treatment. Without insurance, an unexpected incident may cause substantial damage to your financial situation.
Invest in a diversified portfolio
If you’ve managed to save a specific amount of money that is otherwise sitting idle in the bank, look into investing this money in a high-interest term deposit. Once you’ve got more money saved, consider purchasing some property, or investing in gold. The key to a solid investment portfolio is ‘diversification’, meaning that you deal with the risks of investment by putting your eggs in different baskets, so to say.
Seek financial assistance as soon as possible
If, for whatever reason, you’ve found yourself in financial turmoil, the best advice is to seek financial help as soon as possible. Too many folks battle with financial troubles for several years before finding help, which puts them in a worse position as their debts will only compound as time passes. The sooner you get financial guidance, the more options are available to you, so if you need any assistance with your financial situation, speak to the professionals at Bankruptcy Newcastle on 1300 818 575, or visit our website for further information: https://www.bankruptcy-newcastle.com.au/