December 12th, 2018

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Budgeting In Your 20s

Personal Finance Tips – Finance Goals For Your 20’s.

There’s no doubt that your 20’s is a very precious stage of your life. There’s an anxious but exciting sensation about becoming an adult, moving out of home, and being financially self-reliant. Whether you started a career, a university degree, or spent time traveling overseas and gaining life experience, your 20’s is an important decade from both a personal and financial point of view. No matter what path you go with, the one constant that will always remain in your life is money.

The truth of the matter is, the earlier you begin saving money and generating wealth, the better your financial condition will be in the upcoming years. Regardless of whether you plan to get married, start a family, or purchase a house, there are particular financial targets that every individual in their 20’s should try to accomplish 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 start developing healthy financial habits.

Make a budget

Building healthy financial habits starts with knowing 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 forming a budget and sticking to it! With a paper and pen, write down your monthly income and costs. Analyse your expenditures to uncover which can be lowered, or which can be eliminated totally. Some ways to reduce your expenses are electing to eat at home in lieu of eating in restaurants and transferring your Cable TV subscription to streaming services like Netflix instead.

Remove your debts

Regardless of whether you’ve travelled abroad or have student loan debts, the faster you repay these debts, the better. Interest compounds over time, so repaying your debts by cutting down expenses 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 considerably better financial position than just making the minimum monthly repayments on your debts.

Build an emergency fund

Life hardly ever works out the way you planned, so it’s important to be prepared for any abrupt changes that might be necessitated. You may find yourself out of a job, or in an accident that inhibits 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 propose that all individuals should have a dedicated emergency fund that can support their living expenses for three to six months.

Be insured

Insurance protects you financially from any adversarial consequences, for example income insurance should you lose your job, health insurance for unplanned medical expenses, and vehicle insurance in the event that your car is stolen. Although it’s not always beneficial to get every kind of insurance available, it’s unquestionably a smart idea to examine your individual circumstances to see which is best suited to you. For instance, health insurance is strongly recommended for everybody due to the inflated costs of uninsured medical treatment. Without insurance, an unexpected incident may result in substantial 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, consider 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 good 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 trouble, the best advice is to seek financial assistance as soon as possible. Lots of folks struggle with financial issues 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 support with your financial position, talk with the specialists at Bankruptcy Experts Canberra on 1300 795 575, or visit our website for additional information: Bankruptcy Canberra