|March 23, 2018||Comments Closed|
There’s no question that your 20’s is a very cherished period of your life. There’s a nervous but exhilarating feeling about becoming an adult, leaving home, and being financially independent. Regardless if you launched a career, a university degree, or spent time traveling the world and gaining life experience, your 20’s is a valuable decade from both a personal and financial viewpoint. Whatever path you choose, the one constant that will continually remain in your life is money.
The truth of the matter is, the sooner you start saving money and developing wealth, the better your financial prospects will be in the future. Regardless of whether you wish to get married, start a family, or buy a property, there are particular financial aspirations that every individual in their 20’s should try to achieve to secure a better a future. In this blog, we’ll be taking a closer look at these goals and how you can begin building healthy financial habits.
Establish a budget
Establishing 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 money by establishing a budget and following it! With a pen and paper, document your monthly income and expenditures. Examine your expenses to uncover which can be reduced, or which can be cut out altogether. Some ways to cut down your expenses are opting to eat at home rather than eating out and transferring your Cable television subscription to streaming services like Netflix instead.
Get rid of your debts
Regardless if you’ve travelled the world or have student loan debts, the quicker you repay these debts, the better. Interest compounds with time, so repaying your debts by cutting expenditures or working a 2nd job might save you thousands of dollars in only a number of years. These savings can then be invested in a high-interest term deposit as an example, which will put you in a considerably better financial position than simply making the minimal monthly repayments on your debts.
Start an emergency fund
Life seldom works out the way you planned, so it is very important to be prepared for any unanticipated changes that might be required. You may end up unemployed, or in an incident 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 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 adversarial 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. Although it’s not necessarily wise to get every form of insurance available, it’s most certainly a smart idea to review your individual circumstances to see which is best suited to you. For example, medical insurance is highly recommended for everybody due to the inflated costs of uninsured medical treatment. Without insurance, an unforeseen incident may lead to substantial 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. Once you’ve got more money saved, think about buying some property, or investing in gold. The key to a solid 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 found yourself in financial distress, the best advice is to seek financial assistance immediately. Lots of folks struggle with financial problems for years before seeking help, which puts them in a worse position as their debts will only compound over time. The sooner you get financial assistance, the more options are available to you, so if you require any assistance with your financial position, get in contact with the professionals at Bankruptcy Port Stephens on 1300 818 575, or visit our website for more information: https://www.bankruptcy-portstephens.com.au/