|March 23, 2018||Comments Closed|
There’s no doubt that your 20’s is a very cherished stage of your life. There’s a timid but exciting sensation about becoming an adult, moving out of home, and being financially self-reliant. Regardless if you started a career, a university degree, or spent time traveling the world and gaining life experience, your 20’s is a momentous decade from both a personal and financial point of view. No matter what path you go with, the one constant that will consistently remain in your life is money.
The reality of the matter is, the sooner you begin saving money and developing wealth, the better your financial prospects will be in the long term. Regardless of whether you plan to get married, start a family, or invest in a home, there are various financial aspirations that every person in their 20’s should strive 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 begin creating healthy financial habits.
Set up a budget
Constructing healthy financial habits begins with discovering how to budget. Being able to spend less money than you make is the key to saving money, so start taking control of your money by creating a budget and following it! With a pen and paper, document your monthly income and expenditures. Analyse your expenditures to find out which can be lowered, or which can be eliminated completely. A few ways to reduce your expenses are opting to eat at home rather than eating out and switching your Cable subscription to streaming services like Amazon instead.
Remove your debts
Whether or not you’ve travelled abroad or have student loan debts, the quicker you repay these debts, the better. Interest compounds over time, so paying off your debts by reducing spendings or working a 2nd 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 as an example, which will place you in a far better financial position than just making the minimal monthly repayments on your debts.
Establish an emergency fund
Life seldom works out the way you planned, so it is essential to be prepared for any abrupt changes that might be needed. 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 specialists highly recommend that all people should have a dedicated emergency fund that can support their living expenses for 3 to 6 months.
Insurance protects you financially from any detrimental consequences, for example income insurance should you lose your job, health insurance for unexpected medical expenses, and vehicle insurance in the event that your car is stolen. Though it’s not always beneficial to get every type of insurance available, it’s undoubtedly a wise idea to evaluate your individual situation to see which is best suited to you. For example, medical insurance is highly recommended for everyone due to the high costs of uninsured medical treatment. Without insurance, an unanticipated incident may lead to significant damage to your financial position.
Invest in a diversified portfolio
If you’ve been able to save a certain amount of money that is otherwise sitting idle in the bank, look at 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 well-founded 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 distress, the best advice is to seek financial help immediately. Lots of people struggle with financial complications for several years before getting help, which puts them in a worse position as their debts will only compound over time. The sooner you seek financial guidance, the more options are available to you, so if you require any assistance with your financial position, reach out to the specialists at Bankruptcy Mildura on 1300 818 575, or visit our website for further information: http://www.bankruptcy-mildura.com.au/