There’s no doubt that your 20’s is a very memorable phase of your life. There’s a nervous but exhilarating sensation about becoming an adult, moving out of home, and being financially independent. Regardless if you launched a career, a university degree, or spent time traveling the world and gaining life experience, your 20’s is a vital decade from both a personal and financial viewpoint. No matter what path you decide upon, the one constant that will always remain in your life is money.
The point of the matter is, the earlier you begin saving money and building wealth, the better your financial scenario will be in the years to come. Regardless of whether you intend to get married, start a family, or secure a property, there are specific financial goals that every individual in their 20’s should strive to accomplish to secure a better a future. In this blog, we’ll be taking a closer look at these targets and how you can begin building healthy financial habits.
Make a budget
Building healthy financial habits starts with learning how to budget. Being able to spend less money than you make 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, jot down your monthly income and expenses. Examine your expenditures to uncover which can be cut down, or which can be cut out entirely. A few ways to lessen your expenses are choosing to eat at home rather than eating out and swapping your Cable subscription to streaming services like Amazon instead.
Get rid of your debts
Whether or not you’ve travelled the world or have student loan debts, the quicker you repay these debts, the better. Interest compounds with time, so repaying your debts by cutting expenditures or working a second 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 as an example, which will place you in a far better financial position than simply making the minimum monthly repayments on your debts.
Develop an emergency fund
Life hardly ever works out the way you planned, so itis imperative to be prepared for any sudden changes that may be needed. You might find yourself 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 experts advise that all individuals 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 example income insurance should you lose your job, medical insurance for unexpected medical expenses, and vehicle insurance in the event that your car is stolen. Though it’s not always advisable to get every type of insurance available, it’s undeniably a clever idea to assess your individual situation to see which is best suited to you. For example, medical insurance is recommended for everybody due to the inflated costs of uninsured medical treatment. Without insurance, an unforeseen incident may cause significant damage to your financial situation.
Invest in a diversified portfolio
If you’ve been able to save a specific 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, consider buying some property, or investing in gold. The key to a sensible investment portfolio is ‘diversification’, meaning that you manage 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 ended up in financial turmoil, the best advice is to seek financial help immediately. Too many people struggle with financial issues for several years before seeking help, which puts them in a worse position as their debts will only compound as time passes. The sooner you get financial advice, the more options are available to you, so if you need any guidance with your financial situation, talk with the professionals at Bankruptcy Experts Coffs Harbour on 1300 795 575, or visit our website for more information: www.bankruptcyexpertscoffsharbour.com.au