A lot of people say it’s better to start saving as early as possible, and for some, being in your 20s is a great time to save and prepare for your future. In your 20’s, time is on your side and you can take advantage of compound interest for a longer period than if you started saving after you turn 30 when you are likely to have more responsibilities such as possibly having kids, a more demanding career, etc.
So what can you do with your money before you reach the age of 30? Here are several practical tips to consider:
1. Set financial goals
Set clear, specific, and realistic goals, then list the steps to achieve them.
2. Lower your expenses
Check your household budget planner and find out where you can cut corners. For instance, if you buy lunch every day, you can make your own at home.
3. Pay on time and in full
Avoid where possible, paying interest charges on credit cards by making payments on time and in full.
4. Get insurance
This may be an additional monthly expense, but not having it could potentially cost you much more.
5. Have more than one source of income
Having multiple streams of income can help you save more and reach your financial goals faster.
Saving is accumulating cash for short-term goals, while investing is saving money that will eventually generate income for you in the longer term.
7. Understand superannuation
This tax-friendly investment option will provide you with income in your retirement. Understand the rules and be sure to invest in options that help your money grow.
8. Invest in yourself
Further hone your skills and learn new ones. Read books regularly and watch webinars or listen to talks about topics which will help grow your capabilities and open your eyes to new life opportunities.
9. Surround yourself with like-minded people
It helps to be with people who share your vision and interests, as this can further motivate you to save and invest.
10. Don’t be afraid to ask for help
There is a wide range of resources about what you can do with your money in your 20s. You can also ask people who have knowledge and expertise about investment products that you’re interested in
Do you have other household budget planner tips? Share your ideas in the comments section.