|March 23, 2018||0|
There’s no doubt that your 20’s is a very important period of your life. There’s a nervous but exhilarating feeling about becoming an adult, moving out of home, and being financially self-reliant. Regardless of whether you began a career, a university degree, or spent time traveling the world and gaining life experience, your 20’s is a momentous decade from both a personal and financial viewpoint. Regardless of what path you go with, the one constant that will always 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 prospects will be in the upcoming years. Regardless of whether you plan to get married, start a family, or secure a house, there are certain financial goals that every individual in their 20’s should attempt to achieve 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 creating healthy financial habits.
Create a budget
Creating healthy financial habits begins with understanding 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 sticking to it! With a pen and paper, write down your monthly income and expenditures. Review your expenditures to find out which can be decreased, or which can be removed totally. Some ways to lessen your expenditures are electing to eat at home in lieu of eating out and changing your Cable TV subscription to streaming services like Netflix instead.
Remove your debts
Whether or not you’ve travelled the globe or have student loan debts, the faster you repay these debts, the better. Interest compounds with time, so repaying your debts by reducing expenditures or working a 2nd job can save you thousands of dollars in only a number of years. These savings can then be invested in a high-interest term deposit for instance, which will put you in a substantially better financial position than merely making the minimum 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 unexpected adjustments that might be needed. You might end up out of work, or in an accident 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 recommend that all individuals should have a dedicated emergency fund that can support their living expenses for three to six months.
Insurance protects you financially from any undesirable consequences, for example income insurance should you lose your job, health insurance for sudden medical expenses, and vehicle insurance in the event your car is stolen. Even though it’s not always recommended to get every type of insurance available, it’s certainly a clever idea to evaluate your individual situation to see which is best suited to you. For example, health insurance is highly recommended for everybody due to the high costs of uninsured medical treatment. Without insurance, an unplanned incident may cause serious damage to your financial situation.
Invest in a diversified portfolio
If you’ve been able to save a certain amount of money that is otherwise sitting idle in the bank, consider investing this money in a high-interest term deposit. After you’ve got more money saved, consider purchasing some property, or investing in gold. The key to a well-founded 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 found yourself in financial turmoil, the best advice is to seek financial assistance as soon as possible. Too many people struggle with financial problems for years before getting 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 guidance with your financial position, talk to the professionals at Fresh Start Solutions Hobart on 1300 818 575, or visit our website for further information: Bankruptcy Hobart