|March 23, 2018||Comments Closed|
There’s no question that your 20’s is a very unique period of your life. There’s a timid but gratifying feeling about becoming an adult, leaving home, and being financially independent. Whether you kicked off a career, a university degree, or spent time traveling abroad and gaining life experience, your 20’s is a crucial decade from both a personal and financial context. Regardless of what path you decide upon, the one constant that will always remain in your life is money.
The truth of the matter is, the sooner you begin saving money and generating wealth, the better your financial scenario will be in the long term. Regardless of whether you choose to get married, start a family, or purchase a home, there are specific financial aspirations that every individual in their 20’s should attempt to accomplish in order to secure a better a future. In this blog, we’ll be taking a closer look at these targets and how you can start creating healthy financial habits.
Set up a budget
Constructing 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 making a budget and sticking to it! With a pen and paper, document your monthly income and expenditures. Investigate your expenses to uncover which can be decreased, or which can be removed entirely. A few ways to cut down your expenditures are electing to eat at home rather than eating in restaurants and switching your Cable TV 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 slashing 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 as an example, which will put you in a far better financial position than merely making the minimal monthly repayments on your debts.
Build an emergency fund
Life hardly ever works out the way you planned, so it is very important to be prepared for any sudden changes that might be necessitated. You may find yourself out of a job, or in an accident that prevents 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 propose that all individuals should have a dedicated emergency fund that is capable of supporting their living expenses for three to six months.
Insurance protects you financially from any damaging consequences, for example income insurance in case you lose your job, health insurance for unpredictable medical expenses, and vehicle insurance in case your car is stolen. Though it’s not necessarily advisable to get every kind of insurance available, it’s unquestionably a wise idea to review your individual circumstances to see which is best suited to you. For instance, medical insurance is recommended for everybody due to the inflated costs of uninsured medical treatment. Without insurance, an unanticipated incident may result in considerable damage to your financial position.
Invest in a diversified portfolio
If you’ve managed to save a particular amount of money that is otherwise sitting idle in the bank, consider 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 sound investment portfolio is ‘diversification’, meaning that you deal with the risks of investment by putting your eggs in different baskets, so to say.
Get financial assistance immediately
If, for whatever reason, you’ve found yourself in financial trouble, the best advice is to seek financial help immediately. A lot of people battle with financial issues for many 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 require any help with your financial situation, speak to the specialists at Bankruptcy Experts Mount Isa on 1300 795 575, or visit our website for additional information: Bankruptcy Mount Isa