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Finance Goals for your twenties


A wise man once said that if you are not rich by the time you are in your twenties, then you’re doing it wrong!

The sooner you start planning your financial life, the smoother it will be for you to handle your finances later in life.

So, we have pooled in some 7 major financial goals you can set for yourself in your 20’s:

1.       Educate yourself about financing.

We mean, just the basics. You don’t have to be an MBA to know that you should stop buying those expensive shoes that you hardly ever wear!

Knowledge truly is power. Money plays an important role in all our lives, and we need to keep ourselves educated about it enough. It’s never too late to start learning about personal finance, and considering the vast number of blogs that are available online on this topic, it is also considerably easy. 

2.       Improve your budgeting skills.

You would never get ahead with anything financial, until you develop an innate skill of budgeting and conscious spending.  A budget gives the bird’s eye view of your financial life. Your budget should depend on your long term and short term saving goals, your expenses and your retirement plans and your emergency funds.

3.       Develop a Skill Set that you can easily market.

Let’s admit it – Twenties is the age that you discover yourself. You will not like the first job that you end you up with and your first job will not be your last job! However, you need to make the best out of your career. Stick on to your day job – even though you hate it. Yes, your passion might lie elsewhere, but don’t quit your job unless you have a backup career option that will help you sustain financially.

Establish a valued skill and look for opportunities to use that skill.

20’s is the decade where you discover yourself. So, never be afraid to experiment. 

4.       Minimise Credit Card Debts and Eliminate Student loans.

Eliminating high interest credit card rates, is perhaps the smartest investment you can make as a young person. Keep track of your credit card usages, and try to use cash for your purchases as much as possible.

 Student loans can be a big burden to the working youngster. Set a goal and budget in such a way that you completely get rid of your student loan in your twenties. 

5.       Have an Emergency Fund.

Rainy day plans are a must!

Although your job might sound and look secure, you need to have some liquid savings stashed up. This should also be a part of your budget planning.

A thumb rule is to save twice as much as your expense for a year as the emergency fund.

6.       Start and plan your retirement account.

Time is your best tool for investment. The earlier you start your retirement plans, the more you will be able to save. Check out the various pension plans and policies online. Start saving early to have a happy, independent financial life.

7.       Insurances.

Chaos is everywhere. And as an adult, you MUST protect yourself and all your wealth from it. Be prepared. At the occurrence of a horrific incidence, it will be your insurance that will protect you from financial crises.

We will never be able to shell out a lump sum amount in one go – especially in our twenties. Insurances make sure that you stay covered. 

Find the suitable policies that match your needs. There are several online portals that help you compare various insurance plans. Use them. Maturity calculators are also present in such sites, which makes buying insurances much, much easier.

 

Posted by

Balakarthiga M



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