There’s no doubt that your 20’s is a very memorable period of your life. There’s a nervous but gratifying sensation about becoming an adult, moving out of home, and being financially self-reliant. Whether or not you kicked off a career, a university degree, or spent time traveling in foreign countries and gaining life experience, your 20’s is an important decade from both a personal and financial point of view. Regardless of what path you go with, 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 long term. Regardless of whether you want to get married, start a family, or buy a property, there are specific financial aspirations that every individual in their 20’s should try to reach so as to secure a better a future. In this blog, we’ll be taking a closer look at these objectives and how you can start establishing healthy financial habits.
Create a budget
Establishing healthy financial habits starts 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 establishing a budget and sticking to it! With a pen and paper, list your monthly income and costs. Inspect your expenditures to uncover which can be reduced, or which can be cut out totally. Some ways to cut your expenses are choosing to eat at home instead of eating in restaurants and transferring your Cable subscription to streaming services like Amazon instead.
Eradicate your debts
Whether or not you’ve travelled abroad or have student loan debts, the quicker you repay these debts, the better. Interest compounds with time, so paying off your debts by cutting down spendings or working a second 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 place you in a far better financial position than merely making the minimal monthly repayments on your debts.
Set up an emergency fund
Life almost never works out the way you planned, so it is vital to be prepared for any abrupt changes that may be required. You may find yourself unemployed, or in an incident that stops 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 strongly recommend that all individuals should have a devoted emergency fund that can support their living expenses for 3 to 6 months.
Insurance protects you financially from any adversarial consequences, for instance income insurance in the event you lose your job, health insurance for unexpected medical expenses, and vehicle insurance in the event your car is stolen. Though it’s not always wise to get every kind of insurance available, it’s undoubtedly a wise idea to review your individual situation to see which is best suited to you. For instance, health insurance is highly recommended for everybody due to the inflated costs of uninsured medical treatment. Without insurance, an unplanned incident may lead to significant damage to your financial situation.
Invest in a diversified portfolio
If you’ve been able to save a specific amount of money that is otherwise sitting idle in the bank, look at investing this money in a high-interest term deposit. When you’ve got more money saved, contemplate buying 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.
Seek financial assistance as soon as possible
If, for whatever reason, you’ve found yourself in financial trouble, the best advice is to seek financial assistance as soon as possible. Lots of people battle with financial complications for many years before finding 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 need any assistance with your financial condition, talk to the specialists at Bankruptcy Experts Port Stephens on 1300 795 575, or visit our website for additional information: www.bankruptcyexpertsportstephens.com.au