Time and again and by innumerable people around you, a piece of financial advice has been served to you with almost every meal as a complementary serving, that you should be smart with your money during the twenties. Your ears may feel sore after listening to it, but the fact is that, it is one of the best advices you will ever get and that too, free of cost. A smart plan may not be easy to build but you should try your best to get it right. You should consult the right person and make changes, if any, suggested by them if found viable.
Here are five such free financial advices that you must adhere to during your twenties –
- Abstain from ‘Dating’ debt
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A debt, once procured, is like a vicious cycle that has the potential to run throughout your lifespan. Procuring a debt may sound easy and hassle-free but the repayment is where the actual deal is. Debt is like a five star meal, lucrative but short-lived in terms of happiness and causes an extremely big hole in your pocket.
- Make a budget and stand by it
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A budget is an important piece of information. It will help you allocate your income in the most important areas and also let you know the expected savings that you can make at the current income level. A budget saves you from a bumpy ride during the fag end of the month. Budget prevents overspending and also saves you a substantial amount of money.
- Save for the difficult days
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During our twenties, most of us are new to money. So we have a tendency to overspend. Plus, for having so called good friends around you, you must socialize which in other terms mean spending more than what you should.
But if you sit down and decide to make a smart choice, you will realise that you can ignore all such unnecessary compulsions and save for the day when it may actually be required. Thank me later for the same.
- Start investing
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Most of us suffer from a misconception that we require huge amount of money to become a successful investor. I’ll be happy to break the jinx for you. This thought is absolutely rubbish. You should invest a part of your earnings regularly. The value of the investment may rise or fall but don’t lose hope. Continue investing.
- Ignore credit cards
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Being hot-blooded, we have a tendency to over spend. In this age, there are many reasons to waste your money. Most of the months you end up with minimum savings. And imagine what will happen when you procure a credit card.
You will overspend on socializing and on coffee and find yourself in a very awkward situation the next month when you have to pay half of your salary before even seeing it with a smile. You don’t want to fall in such a situation, do you?
Savings and investment is an integral part of your twenties. The more you save and the more you invest during this age, the more benefits you will avail during the retirement days. A penny saved today will be more valuable than a dollar saved tomorrow. So be smart and start utilizing your money, instead of just spending it.