9/10/2023 0 Comments Budgeting advice for young adults![]() ![]() Imagine the future you want and create a financial plan that aligns with your life's milestones like marriage, job changes, having kid/s, retirement, etc. You should ensure that the time frame you establish to achieve each goal is reasonable and prioritise them as short-term and long-term goals.Īfter determining your financial goals, you should be able to develop a strategy to accomplish them. Your financial goals should be S.M.A.R.T (Specific, Measurable, Achievable, Realistic, and Time-bound). Without a clear idea of what you are saving for, you are more likely to spend your hard-earned money on something that is not meaningful to you. Here are 8 crucial financial planning skills that every 20-something must learn:Īre you saving for your dream home or planning to start a family? Are you planning to start your own business, or are you planning to take a world tour? Establishing financial goals can provide you with the motivation to remain focused. While your goals and priorities may shift over time, it is still better to begin with a financial plan and adjust it as needed based on changing priorities. It involves creating a roadmap for meeting all of life's expenses, including unexpected ones. Setting your financial priorities early in life will definitely help you instil good money habits that will go a long way.īefore we go any further, let's first understand what financial planning is įinancial Planning is a comprehensive process that assesses an individual's current and future financial situation to help them systematically achieve their goals. I don't want to sound like an oldie, but today's young generation has the resources to learn and explore everything they desire. But, honestly, today, when I look back, I feel individuals in their twenties should understand the importance of financial planning and how creating a financial plan gives them more control over what their life may look like in 5, 10, or even 20 years. Well, I did that too! This could be mainly because we have never been taught personal finance or money management in high schools and colleges. After relying on parents for financial support for an extended period, the younger generation tends to prioritise splurging their hard-earned money on activities like travelling with friends, going to concerts, buying branded clothes and accessories, and so on, rather than focusing on financial planning. Definitive Guide To Successful Equity Investingįinancial planning may not be your top priority when you are young, earning, and free, particularly in the early stages of your career.10 Steps to Select Winning Mutual Funds.The Complete Guide to Public Provident Fund (PPF).Your Comprehensive Guide to Tax Planning 2019.How To Become A Millionaire With Mutual Fund.Understanding Mutual Funds - Equity, Debt, and Gold. ![]()
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