There’s no question that your 20’s is a very special period of your life. There’s a nervous but fulfilling sensation about becoming an adult, moving out of home, and being financially self-reliant. Whether you launched a career, a university degree, or spent time traveling the world and gaining life experience, your 20’s is a significant decade from both a personal and financial point of view. Whichever path you go with, the one constant that will always remain in your life is money.
The truth of the matter is, the sooner you begin saving money and developing wealth, the better your financial scenario will be in the future. Regardless of whether you intend to get married, start a family, or purchase a property, there are various financial goals that every individual in their 20’s should endeavour to achieve to secure a better a future. In this blog, we’ll be taking a closer look at these objectives and how you can begin establishing healthy financial habits.
Create a budget
Constructing healthy financial habits begins with knowing 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 following it! With a paper and pen, write down your monthly income and expenses. Take a look at your expenses to see which can be lowered, or which can be removed completely. A few ways to reduce your expenses are choosing to eat at home instead of eating out and replacing your Cable TV subscription to streaming services like Amazon instead.
Remove your debts
Whether you’ve travelled the globe or have student loan debts, the quicker you repay these debts, the better. Interest compounds as time passes, so paying off your debts by slashing spendings or working a 2nd job may save you thousands of dollars in only a couple of years. These savings can then be invested in a high-interest term deposit for example, which will place you in a much better financial position than simply making the minimum monthly repayments on your debts.
Set up an emergency fund
Life rarely works out the way you planned, so it is vital to be prepared for any sudden changes that may be required. You might find yourself unemployed, or in an unfortunate incident that hinders you from working, so having an emergency fund will be able to give you some breathing room when you need it the most. Financial advisors 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 damaging consequences, for example income insurance in the event you lose your job, health insurance for unexpected medical expenses, and vehicle insurance in the event that your car is stolen. Although it’s not always recommended to get every form of insurance available, it’s definitely a wise idea to assess your individual situation to see which is best suited to you. For instance, medical insurance is recommended for everybody due to the inflated costs of uninsured medical treatment. Without insurance, an unanticipated incident may result in serious 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 at investing this money in a high-interest term deposit. Once you’ve got more money saved, consider buying 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 help immediately
If, for whatever reason, you’ve ended up in financial turmoil, the best advice is to seek financial help immediately. Too many folks struggle with financial complications for many years before seeking help, which puts them in a worse position as their debts will only compound as time passes. The sooner you seek financial guidance, the more options are available to you, so if you need any support with your financial position, get in touch with the specialists at Bankruptcy Experts Townsville on 1300 795 575, or visit our website for more information: Bankrupt Townsvilee