|March 23, 2018||0|
There’s no question that your 20’s is a very important phase of your life. There’s a nervous but exciting feeling 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 to other countries and gaining life experience, your 20’s is a crucial decade from both a personal and financial point of view. No matter what path you decide upon, the one constant that will consistently 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 scenario will be in the future. Regardless of whether you wish to get married, start a family, or buy a home, there are various financial goals that every individual in their 20’s should attempt to achieve 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 begin establishing healthy financial habits.
Set up a budget
Building healthy financial habits begins 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 money by constructing a budget and sticking to it! With a pen and paper, write down your monthly income and expenditures. Study your expenditures to find out which can be lowered, or which can be cut out altogether. A few ways to cut down your expenses are electing to eat at home instead of eating out and changing your Cable television 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 over time, so repaying your debts by cutting spendings or working a second job may save you thousands of dollars in only a number of years. These savings can then be invested in a high-interest term deposit for example, which will put you in a far better financial position than simply making the minimal monthly repayments on your debts.
Start an emergency fund
Life almost never works out the way you planned, so it’s important to be prepared for any unforeseen adjustments that may be required. You might find yourself out of work, or in an accident that stops you from working, so having an emergency fund will be able to give you some breathing room when you need it the most. Financial specialists 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 detrimental consequences, for instance income insurance should you lose your job, health insurance for unpredictable medical expenses, and vehicle insurance in the event that your car is stolen. Although it’s not necessarily beneficial to get every form of insurance available, it’s most certainly a wise idea to evaluate your individual situation to see which is best suited to you. For example, medical insurance is strongly recommended for everybody due to the inflated costs of uninsured medical treatment. Without insurance, an unexpected incident may lead to substantial damage to your financial position.
Invest in a diversified portfolio
If you’ve managed to save a certain 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, contemplate buying a property, or investing in gold. The key to a sound 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 turmoil, the best advice is to seek financial assistance as soon as possible. Lots of people struggle with financial issues for years before getting help, which puts them in a worse position as their debts will only compound as time passes. The sooner you get financial assistance, the more options are available to you, so if you need any support with your financial condition, reach out to the professionals at Bankruptcy Darwin on 1300 818 575, or visit our website for more information: http://www.bankruptcy-darwin.com.au/