|March 23, 2018||Comments Closed|
There’s no doubt that your 20’s is a very special period of your life. There’s a jittery but exhilarating sensation about becoming an adult, moving out of home, and being financially independent. Regardless of whether you launched a career, a university degree, or spent time traveling the globe and gaining life experience, your 20’s is a valuable decade from both a personal and financial point of view. Regardless of what path you choose, the one constant that will continually remain in your life is money.
The point of the matter is, the sooner you start saving money and generating wealth, the better your financial condition will be in the upcoming years. Regardless of whether you want to get married, start a family, or invest in a house, there are various financial goals that every individual in their 20’s should endeavour to accomplish in order to secure a better a future. In this post, we’ll be taking a closer look at these targets and how you can start establishing healthy financial habits.
Create a budget
Establishing 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 money by creating a budget and sticking to it! With a pen and paper, document your monthly income and costs. Analyse your expenditures to see which can be reduced, or which can be cut out altogether. A few ways to cut your expenditures are choosing to eat at home rather than eating in restaurants and switching your Cable TV subscription to streaming services like Netflix instead.
Eliminate your debts
Regardless if you’ve travelled the globe or have student loan debts, the quicker you repay these debts, the better. Interest compounds over time, so paying off your debts by cutting expenses or working a second job can 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 put you in a far better financial position than merely making the minimum monthly repayments on your debts.
Start an emergency fund
Life rarely works out the way you planned, so it is very important to be prepared for any sudden adjustments that may be required. You might find yourself out of a job, 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 room when you need it the most. Financial specialists propose that all individuals 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 adverse consequences, for example income insurance should you lose your job, health insurance for unexpected medical expenses, and vehicle insurance in the event that your car is stolen. While it’s not necessarily beneficial to get every form of insurance available, it’s most certainly a wise idea to examine your individual circumstances to see which is best suited to you. For instance, health insurance is highly recommended for everyone due to the high costs of uninsured medical treatment. Without insurance, an unanticipated incident may lead to substantial 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. When you’ve got more money saved, consider buying a property, or investing in gold. The key to a solid investment portfolio is ‘diversification’, meaning that you manage 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 trouble, the best advice is to seek financial help as soon as possible. Too many individuals struggle with financial problems 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 get financial assistance, the more options are available to you, so if you require any guidance with your financial situation, talk to the specialists at Bankruptcy Port Macquarie on 1300 818 575, or visit our website for more information: https://www.bankruptcy-portmacquarie.com.au/