Money Management Tips for your 20's
Have you ever felt that a few days back, I had some money in my bank, and now it’s gone? Have you ever wondered that how you can use the money to grow more money? If yes, then this blog is a perfect read for you.
Here are some tips and tricks that you can adopt in your 20’s for your financial management.
Make a budget:
Making a budget is one of the best habits you can incorporate to increase your spendings; wait, what? Spending? Exactly yes, making a budget gives you the freedom to spend money; it is analogous to driving a car without brakes; if your car didn’t have brakes, you wouldn’t drive fast. It’s the brakes that give you the freedom to catch the speed, here’s how…
The general thumb of rule that is followed for people in ’20s is the 50–30–20 rule, according to which 50% of what you earn is something you save, or better invest (I will come to that), 30% of your money goes for necessary items like groceries, rent, etc. and 20% goes for luxury activities like shopping, movies, or trips, etc.
Now for maintaining this, there are many free apps like Mint, pocketguard, Wally which help you in this. So login daily and enter everything, no matter how small it is in the app.
Investing in your 20s is one of the best decisions you will ever make. There are many assets in which you can start investing.
You can invest in:
- Stock market investment
- Cryptocurrency like Bitcoin, Etherium
- Commodities like Gold and Silver
- Mutual Funds
The best part about 2021 is we can do all these things with just a click through our mobile. Apps like Zerodha, Upstox, and Groww are beneficial in investing.
Prevention is better than cure:
In the 20s, having a term insurance plan will provide you a safety net against all mishappens that may incur, like sudden hospitalization or job loss, etc. These things lead to a financial setback.
Having a term insurance plan is something you can use to claim tax benefits also, the premium that you have to pay if you are in your 20s is less than when you are in your 40s.
Many companies provide this like ICICI and Max; taking them from your employer is more beneficial because of corporate discounts.
So 3 tips for your financial journey
- Make a budget
- Start Investing
- Get a safety net with term insurance