Your Guide To Managing Money In Your 20s
Right from the aggressive shopaholic to the always saving soul, everyone struggles when it comes to money management. With bills coming in left and right, saving money is a constant struggle. During these moments every tip to money management will be of definite use.
So here are 5 easy to apply ways to save money and have the time of your life, in your 20s:
1. Budget all the way:
Although it sounds like a lot of work and seems to be quite boring, budgeting all your expenses is a sure shot way to save some money. Start by budgeting the big events like a trip or a party you are throwing, and follow onto making a budget for smaller events too such as dinners and shopping. Making a budget for every expenditure will give you a clear idea of where your money is exactly going and help you in making a proper financial plan every month.
2. Insure yourself:
Insurance is definitely not something that just middle aged people do, contrary to popular belief. Insuring yourself with a health cover especially will definitely come in handy when there is a medical emergency and it’s the end of the month and cash is running low. Other insurances that are a must especially when you are young and love to drive a little dangerously is a car insurance. It’ll definitely save you some time and money later on!
3. Small investment plans:
Investment plans go a long way if you do it when you are still young. Start small with investing in a few stocks in your favourite companies and then save up and move on to bigger projects like buying a land/plot/flat. This investment will work great as a backup plan for the rainy days or your go-to retirement plan.
4. Debt repayment is primary:
If you have taken a student loan or a personal loan, then that repayment must be your primary focus even in the initial years of your career. Make a debt repayment plan where you auto route your earnings into repayment of the same. This is the primary
5. Build an emergency cushion:
In your 20s, money goes just as fast as you earn it. This will lead to many moments when you will be running a tight ship. In such a situation it is always better to have a back-up plan. An emergency account will be your saving cushion during your times of immediate need.
In a world where expenses are constantly rising and the standard of living is also increasing, it is always better to have your financial plan charted out. Planning your finances is not easy and sometimes it many seem confusing even after reading up on it. In such cases, it is better to go for Professional Financial Planning Consultancy services. Then you too can manage your money like a pro!