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Financial Planning - You are in 20's
Business
- On Feb 20, 2025
- By Avinash Kumar
Financial Planning - You are in 20's
You are about to enter into a different world. A totally new horizon is about to open its gates to welcome you. Your aspiration will get wing to fly high. You will do hard work to prove your worth in an organization and much more. A complete new corporate circle will overtake your existing one. Your own hard earned money will start to fill your pockets and fuel your half-filled desires. You will feel craving towards buying a new bike, car, trendy clothes, late night parties, spending money on your own and your family members. BUT you need to keep an eye on your financial standing too. You need to build yourself as well as your thought process too. Here are some key points where you can look upon.
Your Credit Score:
It is the time to start building your credit history. It will help you to build your credit worthiness when applying for rental apartments, car loans, mortgages etc. The higher your credit score, the better your chances of being accepted and even getting a low interest rate on your loans or credit cards. If you have education loan, it will help with your credit history, Opting for a good Credit card will help you in building history.Contingency Funds:
It will help you in case of job loss, your car repair, unexpected expenses, and Medical emergency. At least 3-6 month expenses will be enough to meet such situations.Get rid of your Education loan:
Once you start earning, your first priority should be to get rid of your Education loans. Talk to your Financial Advisor and get a repayment plan in place; then stick to it. If you need to do some extra work, do it. It will help you to save taxes too.Give Preference to Saving Instead of Spending:
Most of the new earner prefer to spend money in show off, you can Plan for a new house for you or a new car if needed. You can support your parent in their other needs, give a sense of pride to your parents, and ensure you live a debt free life.Start Monthly Investments:
Initially it is difficult to invest lump sum in any option but you can contribute for your future right from the beginning. A stich in time saves nine. Impact of early saving will give you a better result when you require. You can go for car in lump sum instead of taking a car loan if you have saved enough, you can plan vacation for your parents without taking any loan etc.Impact of start early in life
