|March 23, 2018||Comments Closed|
There’s no question that your 20’s is a very important phase of your life. There’s a jittery but exhilarating sensation about becoming an adult, leaving home, and being financially independent. Whether or not you launched a career, a university degree, or spent time traveling overseas and gaining life experience, your 20’s is a vital decade from both a personal and financial context. Regardless of what path you choose, the one constant that will always remain in your life is money.
The fact of the matter is, the earlier you begin saving money and generating wealth, the better your financial condition will be in the future. Regardless of whether you want to get married, start a family, or secure a property, there are various financial goals that every individual in their 20’s should endeavour to achieve 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.
Make a budget
Constructing healthy financial habits begins 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 setting up a budget and sticking to it! With a pen and paper, jot down your monthly income and expenses. Review your expenditures to find out which can be decreased, or which can be cut out entirely. Some ways to reduce your expenses are opting to eat at home instead of eating out and substituting your Cable TV subscription to streaming services like Netflix instead.
Get rid of your debts
Regardless if you’ve travelled overseas or have student loan debts, the faster you repay these debts, the better. Interest compounds with time, so paying off your debts by cutting expenditures or working a 2nd 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 instance, which will put you in a much better financial position than only making the minimum monthly repayments on your debts.
Create an emergency fund
Life seldom works out the way you planned, so it’s important to be prepared for any unanticipated changes that may 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 some breathing space when you need it the most. Financial experts strongly recommend that all folks should have a devoted emergency fund that can support their living expenses for three to six months.
Insurance protects you financially from any adverse consequences, for instance income insurance in the event you lose your job, health insurance for unplanned medical expenses, and vehicle insurance in the event your car is stolen. Even though it’s not always appropriate to get every kind of insurance available, it’s unquestionably a smart idea to examine your individual circumstances to see which is best suited to you. For example, medical insurance is highly recommended for everybody due to the high costs of uninsured medical treatment. Without insurance, an unplanned incident may cause significant damage to your financial position.
Invest in a diversified portfolio
If you’ve managed 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. Once you’ve got more money saved, think about purchasing a property, or investing in gold. The key to a well-founded 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 immediately
If, for whatever reason, you’ve ended up in financial hardship, the best advice is to seek financial help as soon as possible. A lot of people battle with financial complications for years before finding 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 help with your financial condition, get in contact with the professionals at Bankruptcy Perth on 1300 818 575, or visit our website for further information: https://www.bankruptcy-perth.com.au/