5 Things People in Their 20s Should Save For

Saving in your 20s can be a tough and challenging habit to start, but it is one that you should prioritise. Some people think that it is still too early to focus on building a healthy relationship with your money, and they’re wrong. Your 20s is the perfect time to get serious about spending and managing your finances.

As you start your career, having a healthy money habit can help you avoid overspending, or worse, mountains of debts. Now, what? What should you save for in your 20s? Is it a brand-new car, the latest iPhone model, or a trip around the world? If you’re confused as to what you should be saving for, then this article is for you. You can build good money habits while you’re still young.

Read on and learn five things you should be saving for while you’re building your career.

1. Always invest in the future you.

Saving doesn’t entirely equate to money or finances. It can also mean that you are investing in your personal development. You can start exploring more things that interest you. Are you wondering whether you should go to post-graduate school? Well, your 20s is the best time to further your education.

2. Think about your retirement plan.

Unfortunately, not many young professionals think about retirement. After all, they’re just starting their careers. However, this is the most common mistake people do in their 20s. In a Roy Morgan article, a staggering number of Australian retire early despite having insufficient savings. To avoid this, you need to prepare ahead. You can check out different retirement plans or talk to a financial planner in Melbourne to set your Superfund.

3. Build an emergency fund.

Accidents and emergencies happen when you least expect them. And when they do, it’s good to be prepared. No matter how much you earn or spend, one of the essential money habits to practice is establishing an emergency fund.

Most financial planners suggest that you should save at least three to six months of your basic living expenses for your emergency fund. Whenever you’re laid-off from your job, or you need time off to heal from your illness, this three-month guideline allows you to live without debts, as you heal or search for more secured employment.

4. Get health insurance.

As the adage goes, health is wealth. That’s why it’s one of the essential things you need to save up for in your 20s. Getting health insurance while you’re still young is a smart move. If you don’t have health insurance and you sign up for one when you are older than 30, your premium is likely to be more expensive. It is because you need to pay a government penalty which is 2% loading for every year of your age over 30.

5. Save up for a home.

Have you been thinking of building your dream home? Why don’t you try and save some cash to make your dream come true? To know the amount you need to save and invest for your future home, you can always consult with an independent financial planner in Melbourne. He/she will walk you through a financial plan to help you realise your goals.

Other than that, financial planners can also introduce different ways to build your wealth over time. If you want to invest in real estate or you’re confused about your finances, they can provide expert financial advice. Their expertise can help you through your journey towards financial freedom and stability.

In Need of a Reliable Financial Planner in Melbourne? Talk to the Experts at Financial Services for Life

Are you overwhelmed in handling your finances? Do you feel confused about budgeting? Start your future right by investing in sound financial advice.

Here at Financial Services for Life, we offer lifetime financial planning to keep you on track of your finances, and of course, your life. Enjoy your youth and retirement life debt-free with our help.

To know more about our service, you can always call us at 0468 699 099 or send us an email at rosella@financialservicesforlife.com.au.