You may be fresh out of uni and ready for your next adventure! It is an exciting time to finally enter the workforce and receive your first payslip. It’s a great season to meet new friends, build relationships, and travel the world.
This newfound freedom comes with a set of responsibilities though. Living on your own means paying your own rent, bills, and other expenses. If you want to have a brighter financial future, building healthy habits early on will reap great rewards later.
We have outlined the 10 things you need to do before 30 if you want to have a bright financial future and have your dream retirement:
1. Set a savings plan
It doesn’t matter if you start with a few dollars per week. You can increase it gradually as you learn to budget your income. The most important thing to remember is to be consistent and stick with your savings plan.
2. Pay down debt
The road to financial freedom starts with paying down your debt. High-interest debts will weigh you down and will be a big hurdle on your financial plans. If you have extra money, consider paying your debts in full or in progression until you get rid of them.
3. Don’t let friends determine your spending habit
Peer pressure usually dictates almost every Millennials’ spending habits. Don’t give in if your friend pressures you to go shopping for clothes or buy that latest gadget. Assess every situation carefully and check whether it’s within your budget or not.
4. Make a budget
This must be the hardest part in planning your finances. You may not be successful on the first try, but once you get the hang of it, you will reap great rewards in the future. Setting a budget and sticking on to it will help you manage income and control your expenses effectively.
5. Skip the bargains and sales
Do your eyes lit up whenever you see “50% off” on your favourite clothing brand? Buying things that you don’t need even if they’re on sale is not a bargain. Bargains are a great marketing stint to lure you into buying things you won’t usually buy at full price.
6. Invest in yourself
You are your greatest asset. Learn new skills while you are young and capable. Make sure that your health and life insurance are in place. Treat yourself every once in a while. Having a budget doesn’t mean you need to live a frugal life. Set aside time for recreation and reward yourself for every job well done. This will motivate you and be better for your next project.
7. Sort out your super
You might need the help of an accountant or a financial advisor in setting up your superannuation plan. Those who are in their 20s can engage in a more aggressive and high-growth options than the basic ones.
8. Set aside time for financial literacy
If financial terms confuse or scare you, it’s time to face your fears and make yourself financial literate. The Internet offers great information—read and be well informed. Ask questions and seek help whenever you have difficulty understanding some terms.
9. Make long-term investments
In order to have a comfortable retirement, you need to have long-term investments. Property is a high-yield investment that appreciates over time. Plan on how you can save for a deposit and make property investment as your goal.
10. Find a great partner
Yes, this should be on your list too! An abusive and financially dependent partner will drag you down and will distract you from your financial goals. You must be with someone who will support, help, and motivate you and not the other way around.
We love to listen to your concerns! If you need a professional financial advice, Focused Advice is here to help you.