Being a 20 year old means that you are at the beginning of your career and everything is out ahead of you. There are a lot of opportunities that lie ahead of you at this point of time. The most powerful resource in wealth creation is how long you have the time to grow your money on your behalf and 20 plus years is the foundation age where you can act and start planning your financial journey ahead.
Start by understanding the basics first which might include budgeting, savings and investments. List all your expenses as well as all your income first. If you have no idea and starting out fresh, take a look at your past 3 months of expenses and income. You can use online budgeting tools also to list your income and expenses as well as categorize your spending and earning respectively. This gives you a clear idea on where your money is going, and therefore, identify the areas that you can control.
As a 20 year old, there might be a lot of whispers in your head saying that you only live once and you should enjoy life. This might not be true. The life expectancy chart has increased and you live much longer now thanks to all the medical advancements. This also means that you must be focused on investing your money from a young age with the time benefit you will have; you might just be able to retire with much more than expected. The temptation of indulging yourself in every pleasures must be limited and your main focus should be spending on needs and investing your wants into fruitful assets. Maintaining a perfect balance is the core key to prolonged happiness.
The first step here is to get organized and not to borrow unnecessarily accumulating debt. If you already have responsible debts like student loans, keep it in priority to pay off first. Create a realistic plan to pay off your debt and understand that it is temporary which can be paid off with some lifestyle adjustments and hard work. Always try to live below your means and avoid unnecessary borrowing for lifestyle changes.
Time is your greatest ally in growing your money. The longer you leave your money in an interest earning fixed/recurring deposit account, the bigger it can grow. Starting early also enables you to invest in riskier/volatile investments which generally tends to yield better value if managed properly. Investments in stocks and starting a SIP plan early on can help you reap capital gains later on as these investments tend to grow overtime. Starting early lets you mitigate these risks without affecting your long term financial health. Using a platform like SBS can help you find better interest yielding accounts, get the best credit cards to manage your expenses and find the best loans to match your investments needs.
Saral banking Sewa (SBS) can be your helping hand in order for you to achieve your financial goals. Here are ways we can help:
Our user-friendly interface makes it easy for you to access a wide range of financial information and make an informed decision.
Once onboard, SBS helps you to find the most desired financial products. We assist you, empower you and point you towards the most appropriate solution that there is to offer.
Our loan comparison makes it easier for you to choose the one that is aligned with your financial objectives. By comparing deposit features, you can be assured to choose only the best for your financial progress.
We don’t just provide comparison features and tools, we also offer resources to make our users understand the complex world of finance. Personalized guidance and one-to-one query support are also part of our financial empowerment mission.
Starting early in your journey to financial success is crucial for wealth accumulations. It might be a scary jump but the results are overwhelming. Your time is your biggest asset hence, focus on the long term goals and reap the benefits of compounding to the fullest by starting early.
