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