|March 23, 2018||0|
There’s no doubt that your 20’s is a very enjoyable period of your life. There’s an anxious but fulfilling sensation about becoming an adult, leaving home, and being financially independent. Whether or not you started a career, a university degree, or spent time traveling to other countries and gaining life experience, your 20’s is a momentous decade from both a personal and financial perspective. Whichever path you choose, the one constant that will constantly remain in your life is money.
The truth of the matter is, the sooner you start saving money and generating wealth, the better your financial scenario will be in the long term. Regardless of whether you want to get married, start a family, or invest in a house, there are a number of financial aspirations that every individual in their 20’s should try to accomplish in order to secure a better a future. In this post, we’ll be taking a closer look at these objectives and how you can begin building 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 finances by setting up a budget and sticking to it! With a pen and paper, document your monthly income and expenses. Investigate your expenses to uncover which can be cut down, or which can be removed entirely. Some ways to cut your expenses are choosing to eat at home as opposed to eating in restaurants and substituting your Cable TV subscription to streaming services like Netflix instead.
Remove your debts
Regardless of whether you’ve travelled the globe or have student loan debts, the faster you repay these debts, the better. Interest compounds as time passes, so paying off your debts by cutting spendings or working a second job might 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 put you in a significantly better financial position than merely making the minimal monthly repayments on your debts.
Establish an emergency fund
Life hardly ever works out the way you planned, so it is crucial to be prepared for any unanticipated adjustments that may be necessitated. You might find yourself unemployed, or in an accident 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 advisors propose that all individuals should have a dedicated emergency fund that can support their living expenses for 3 to 6 months.
Insurance protects you financially from any damaging consequences, for instance income insurance should you lose your job, medical insurance for unexpected medical expenses, and vehicle insurance in the event that your car is stolen. Although it’s not necessarily a good idea to get every form of insurance available, it’s definitely a smart idea to analyse your individual situation to see which is best suited to you. For example, medical insurance is recommended for everyone due to the inflated costs of uninsured medical treatment. Without insurance, an unexpected incident may lead to substantial damage to your financial situation.
Invest in a diversified portfolio
If you’ve been able to save a particular amount of money that is otherwise sitting idle in the bank, think about investing this money in a high-interest term deposit. After you’ve got more money saved, think about purchasing some property, or investing in gold. The key to a sound investment portfolio is ‘diversification’, meaning that you regulate the risks of investment by putting your eggs in different baskets, so to say.
Seek financial help as soon as possible
If, for whatever reason, you’ve found yourself in financial hardship, the best advice is to seek financial help immediately. Too many folks wrestle with financial issues for years before getting help, which puts them in a worse position as their debts will only compound over time. The sooner you seek financial assistance, the more options are available to you, so if you need any support with your financial position, speak with the specialists at Fresh Start Solutions Adelaide on 1300 818 575, or visit our website for additional information: Bankruptcy Adelaide