|March 23, 2018||Comments Closed|
There’s no doubt that your 20’s is a very special phase of your life. There’s an anxious but exciting feeling about becoming an adult, moving out of home, and being financially self-reliant. Regardless if you started a career, a university degree, or spent time traveling to other countries and gaining life experience, your 20’s is a meaningful decade from both a personal and financial perspective. Regardless of what path you choose, the one constant that will constantly 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 years to come. Regardless of whether you want to get married, start a family, or purchase a house, there are various financial objectives that every person in their 20’s should attempt to accomplish to secure a better a future. In this post, we’ll be taking a closer look at these objectives and how you can start establishing healthy financial habits.
Set up a budget
Developing healthy financial habits starts with knowing 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 making a budget and following it! With a pen and paper, list your monthly income and costs. Analyse your expenses to find out which can be decreased, or which can be eliminated entirely. Some ways to cut down your expenditures are choosing to eat at home as opposed to eating out and transferring your Cable television subscription to streaming services like Netflix instead.
Eliminate your debts
Regardless of whether you’ve travelled overseas or have student loan debts, the quicker you repay these debts, the better. Interest compounds as time passes, so repaying your debts by cutting down expenditures or working a 2nd 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 put you in a substantially better financial position than merely making the minimum monthly repayments on your debts.
Create an emergency fund
Life seldom works out the way you planned, so it is crucial to be prepared for any sudden adjustments that may be required. You could end up unemployed, or in an accident that inhibits 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 advisors recommend that all folks 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 example income insurance in the event you lose your job, medical insurance for unexpected medical expenses, and vehicle insurance in the event that your car is stolen. Even though it’s not necessarily sensible to get every type of insurance available, it’s most certainly a clever idea to analyse your individual circumstances to see which is best suited to you. For example, medical insurance is highly recommended for everyone due to the inflated costs of uninsured medical treatment. Without insurance, an unforeseen incident may lead to considerable 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, look at investing this money in a high-interest term deposit. After you’ve got more money saved, contemplate purchasing some property, or investing in gold. The key to a good 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 immediately
If, for whatever reason, you’ve ended up in financial distress, the best advice is to seek financial assistance as soon as possible. Lots of individuals wrestle with financial complications for years before seeking help, which puts them in a worse position as their debts will only compound with time. The sooner you get financial assistance, the more options are available to you, so if you need any guidance with your financial position, reach out to the specialists at Bankruptcy Maitland on 1300 818 575, or visit our website for more information: http://www.bankruptcy-maitland.com.au/