|March 23, 2018||Comments Closed|
There’s no doubt that your 20’s is a very precious period of your life. There’s a nervous but exhilarating sensation about becoming an adult, leaving home, and being financially self-reliant. Regardless of whether you began a career, a university degree, or spent time traveling abroad and gaining life experience, your 20’s is a meaningful decade from both a personal and financial perspective. No matter what path you choose, the one constant that will constantly remain in your life is money.
The fact of the matter is, the sooner you begin saving money and building wealth, the better your financial condition will be in the future. Regardless of whether you wish to get married, start a family, or purchase a property, there are various financial goals that every individual in their 20’s should attempt to accomplish so as to secure a better a future. In this post, we’ll be taking a closer look at these targets and how you can start constructing healthy financial habits.
Establish a budget
Building healthy financial habits starts with discovering 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 following it! With a paper and pen, list your monthly income and expenditures. Study your expenses to see which can be cut down, or which can be removed totally. A few ways to cut your expenses are electing to eat at home rather than eating out and replacing your Cable TV subscription to streaming services like Amazon instead.
Get rid of 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 over time, so paying off your debts by slashing expenditures or working a 2nd job can save you thousands of dollars in only a few years. These savings can then be invested in a high-interest term deposit for example, which will place you in a far better financial position than only making the minimal monthly repayments on your debts.
Build an emergency fund
Life hardly ever works out the way you planned, so itis imperative to be prepared for any abrupt changes that might be needed. You could end up unemployed, or in an unfortunate incident that stops you from working, so having an emergency fund will be able to give you some breathing space when you need it the most. Financial advisors strongly recommend that all folks should have a dedicated emergency fund that is capable of supporting their living expenses for 3 to 6 months.
Insurance protects you financially from any damaging consequences, for example income insurance should you lose your job, medical insurance for sudden medical expenses, and vehicle insurance in the event your car is stolen. Though it’s not necessarily wise to get every form of insurance available, it’s definitely a smart idea to review your individual circumstances to see which is best suited to you. For instance, medical insurance is strongly recommended for everyone due to the high costs of uninsured medical treatment. Without insurance, an unplanned incident may lead to substantial damage to your financial situation.
Invest in a diversified portfolio
If you’ve managed to save a particular amount of money that is otherwise sitting idle in the bank, think about 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 sensible investment portfolio is ‘diversification’, meaning that you regulate the risks of investment by putting your eggs in different baskets, so to say.
Seek financial assistance immediately
If, for whatever reason, you’ve found yourself in financial hardship, the best advice is to seek financial assistance as soon as possible. Too many people wrestle with financial troubles 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 support with your financial situation, talk to the professionals at Bankruptcy Melbourne on 1300 818 575, or visit our website for further information: http://www.bankruptcy-melbourne.com.au/