|March 23, 2018||Comments Closed|
There’s no question that your 20’s is a very precious phase of your life. There’s a nervous but gratifying feeling about becoming an adult, leaving home, and being financially independent. Whether or not you began a career, a university degree, or spent time traveling abroad and gaining life experience, your 20’s is an important decade from both a personal and financial point of view. Whichever path you decide upon, the one constant that will continually remain in your life is money.
The truth of the matter is, the earlier you start saving money and developing wealth, the better your financial scenario will be in the long term. Regardless of whether you plan to get married, start a family, or secure a house, there are a number of financial aspirations that every person in their 20’s should try to accomplish to secure a better a future. In this article, we’ll be taking a closer look at these goals and how you can begin developing healthy financial habits.
Create 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 money by putting together a budget and sticking to it! With a pen and paper, jot down your monthly income and costs. Study your expenses to see which can be reduced, or which can be cut out totally. A few ways to cut your expenditures are electing to eat at home in lieu of eating out and transferring your Cable television subscription to streaming services like Amazon instead.
Get rid of your debts
Whether or not you’ve travelled overseas or have student loan debts, the faster you repay these debts, the better. Interest compounds over time, so paying off your debts by slashing expenditures or working a 2nd job could save you thousands of dollars in only a number of years. These savings can then be invested in a high-interest term deposit for example, which will place you in a far better financial position than merely making the minimal monthly repayments on your debts.
Start an emergency fund
Life seldom works out the way you planned, so it’s important to be prepared for any sudden changes that might be needed. You could find yourself unemployed, or in an unfortunate incident that inhibits you from working, so having an emergency fund will be able to give you some breathing space when you need it the most. Financial specialists highly recommend that all folks should have a devoted emergency fund that is capable of supporting their living expenses for 3 to 6 months.
Insurance protects you financially from any damaging consequences, for example income insurance in case you lose your job, medical insurance for sudden medical expenses, and vehicle insurance in case your car is stolen. While it’s not always recommended to get every form of insurance available, it’s undoubtedly a clever idea to review your individual circumstances to see which is best suited to you. For example, health insurance is highly recommended for everybody due to the inflated costs of uninsured medical treatment. Without insurance, an unplanned incident may result in serious damage to your financial position.
Invest in a diversified portfolio
If you’ve been able to save a certain amount of money that is otherwise sitting idle in the bank, think about investing this money in a high-interest term deposit. Once you’ve got more money saved, think about buying a property, or investing in gold. The key to a solid 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 help immediately. Lots of individuals struggle with financial complications for many years before getting help, which puts them in a worse position as their debts will only compound with time. The sooner you get financial advice, the more options are available to you, so if you require any help with your financial condition, speak to the professionals at Bankruptcy Gosford on 1300 818 575, or visit our website for more information: https://www.bankruptcy-gosford.com.au/