|March 23, 2018||0|
There’s no doubt that your 20’s is a very important stage of your life. There’s a nervous but exciting sensation about becoming an adult, moving out of home, and being financially independent. Whether or not you began a career, a university degree, or spent time traveling overseas and gaining life experience, your 20’s is a valuable decade from both a personal and financial point of view. Whichever path you choose, the one constant that will always remain in your life is money.
The fact of the matter is, the sooner you start saving money and creating wealth, the better your financial condition will be in the years to come. Regardless of whether you want to get married, start a family, or purchase a house, there are certain financial goals that every individual in their 20’s should strive to reach to secure a better a future. In this blog, we’ll be taking a closer look at these objectives and how you can start establishing healthy financial habits.
Put together a budget
Building healthy financial habits starts with understanding how to budget. Being able to spend less money than you make is the key to saving money, so start taking control of your money by creating a budget and sticking to it! With a pen and paper, write down your monthly income and expenses. Look over your expenditures to uncover which can be decreased, or which can be removed completely. Some ways to lessen your expenses are electing to eat at home in lieu of eating out and substituting your Cable television subscription to streaming services like Netflix instead.
Remove your debts
Regardless if you’ve travelled abroad or have student loan debts, the faster you repay these debts, the better. Interest compounds with time, so repaying your debts by cutting down spendings 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 as an example, which will place you in a far better financial position than only making the minimum monthly repayments on your debts.
Create an emergency fund
Life rarely works out the way you planned, so it is essential to be prepared for any sudden changes that might be required. You could find yourself out of a job, or in an unfortunate incident that stops 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 experts advise that all folks 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 detrimental consequences, for instance income insurance in case you lose your job, medical insurance for unanticipated medical expenses, and vehicle insurance in case your car is stolen. Even though it’s not necessarily advisable to get every kind of insurance available, it’s undeniably a wise idea to evaluate your individual circumstances to see which is best suited to you. For instance, medical insurance is strongly recommended for everybody due to the inflated costs of uninsured medical treatment. Without insurance, an unexpected incident may lead to significant 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. When you’ve got more money saved, consider purchasing a property, or investing in gold. The key to a well-founded investment portfolio is ‘diversification’, meaning that you deal with the risks of investment by putting your eggs in different baskets, so to say.
Get financial help as soon as possible
If, for whatever reason, you’ve ended up in financial turmoil, the best advice is to seek financial help as soon as possible. Lots of individuals struggle with financial troubles for years before seeking help, which puts them in a worse position as their debts will only compound over time. The sooner you get financial advice, the more options are available to you, so if you require any guidance with your financial position, get in touch with the specialists at Bankruptcy Dandenong on 1300 818 575, or visit our website for further information: http://www.bankruptcy-dandenong.com.au/