There’s no question that your 20’s is a very precious phase of your life. There’s a nervous but exhilarating feeling about becoming an adult, moving out of home, and being financially self-reliant. Whether you began a career, a university degree, or spent time traveling the world and gaining life experience, your 20’s is a valuable decade from both a personal and financial perspective. Whatever path you decide upon, the one constant that will continually remain in your life is money.
The fact of the matter is, the sooner you start saving money and building wealth, the better your financial prospects will be in the upcoming years. Regardless of whether you choose to get married, start a family, or buy a house, there are specific financial aspirations that every individual in their 20’s should endeavour to reach in order to secure a better a future. In this blog, we’ll be taking a closer look at these objectives and how you can begin establishing healthy financial habits.
Set up a budget
Establishing 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 finances by creating a budget and following it! With a paper and pen, write down your monthly income and expenses. Inspect your expenditures to find out which can be lowered, or which can be eliminated completely. A few ways to cut your expenditures are opting to eat at home instead of eating in restaurants and swapping your Cable television subscription to streaming services like Netflix instead.
Eradicate your debts
Whether you’ve travelled the globe or have student loan debts, the quicker you repay these debts, the better. Interest compounds as time passes, so paying off your debts by reducing spendings or working a 2nd job might save you thousands of dollars in only a couple of years. These savings can then be invested in a high-interest term deposit as an example, which will put you in a considerably better financial position than only making the minimal monthly repayments on your debts.
Establish an emergency fund
Life rarely works out the way you planned, so it’s important to be prepared for any unanticipated adjustments that might be needed. You might find yourself out of a job, or in an unfortunate incident that prevents 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 recommend that all people 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 detrimental consequences, for instance income insurance in case you lose your job, medical insurance for unpredictable medical expenses, and vehicle insurance in the event your car is stolen. Although it’s not necessarily a good idea to get every type of insurance available, it’s most certainly a smart idea to review your individual situation to see which is best suited to you. For example, 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 been able 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, think about purchasing some property, or investing in gold. The key to a sensible investment portfolio is ‘diversification’, meaning that you handle the risks of investment by putting your eggs in different baskets, so to say.
Get financial help immediately
If, for whatever reason, you’ve ended up in financial distress, the best advice is to seek financial assistance immediately. A lot of individuals battle with financial complications for several years before seeking help, which puts them in a worse position as their debts will only compound over time. The sooner you get financial advice, the more options are available to you, so if you require any assistance with your financial position, talk with the professionals at Bankruptcy Experts Gold Coast on 1300 879 867, or visit our website for further information: www.bankruptcyexpertsgoldcoast.com.au