If you are in your 20’s, then chances are that you are on the first rung of the corporate ladder or tasting the first sips of your chosen profession. Financial planning may be the last thing on your mind right now. However, if you start planning your finances at this stage of your life, or better yet, hire a financial planner to exercise discipline on your spending, you will enjoy an enviable financial cushion during the later stages of your life.
When you hire a financial planner, you have the advantage of tapping into an extensive knowledge base of managing daily expenses, heavy expenses like health care and housing and heavy debts. You can also think about longer term goals, including far off retirement.
The quicker you begin to follow a personal financial plan, the better the future will appear for you. According to seasoned financial planners, you must strive for a few changes.
Develop marketable skills
You need to earn money before planning to save it. Make your money earning activity your career and not just a job. You may not like your job at this stage in your life, and may already be planning to ditch it for another more enjoyable and more lucrative channel of employment, but the present job may help in more ways than you ever imagined. You never know, but the job you detest may open up opportunities which you never knew existed before. Whatever you do, do not be shy of experimenting and taking risks. This may turn out to be very lucrative in the longer term.
Finalize your budget
The moment you get your paycheck, slice up your salary to avoid overspending on items you do not need. If you spend without thinking, you will not have money for really important purchases. There must be a differentiation between what you need, what you want and what you dream. To budget, write out all the daily expenses (food bills and commuting included) and also your recurring monthly payments like rent and utility bills. Look at the sheet again. You now have a clear idea of where your hard earned money is going and how to trim the fat section of your budget. You should also focus on long term and short term goals, like an emergency fund.
You should also insure yourself. You are an adult and therefore responsible for any anything which may happen to you. If any of this seems daunting and you don’t know where to start! Don’t stress it, contact the professionals at Wealthnest Planners conveniently located in Chandler, Arizona. www.wealthnest.com or 480-699-5275
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. Investing in securities is subject to risk including risk of loss of principal. No strategy assures success or guarantees against loss.