Being in your 20’s seems nothing short of a roller-coaster ride. One’s 20’s is a time filled with the highest of highs and lowest of lows and with all this the struggle of making ends meet is like default setting in the 20’s. You aren’t a child to ask parents for financial support, but you haven’t quite yet aced the savings game either, so every month end becomes a funds end. But, with just a little bit of help you can stay afloat and slowly but surely be in the position you want to be in financially. Here are some New Year resolutions everyone in their 20’s need to make.
Live Within Your Means
It’s easy to be attracted by all the glitz and glamour when you are young; to want to have the best of everything, travel around the globe, eat the best food at the fanciest restaurants and so on. While there is nothing wrong in any of that, the problem arises when your lifestyle exceeds your livelihood. It’s a good practice to live within ones mean and not try to be someone that we essentially can’t afford. As your income increases your lifestyle will too but let them complement each other.
Borrowing is Not Affording
Have you ever seen a beautiful outfit online or set your eyes on the latest watch and just wanted it? But you’ve also borrowed money from friends or family to purchase it? Well, let’s put stop to that in the New Year. Things bought from money that is borrowed, are things that you clearly can’t afford in the moment. You’ll only be pressed for cash later when you must pay back the borrowed sum. Instead try saving up for things you need.
Track Your Spending
A good way to save money, or rather spend within your means, is by tracking your monthly expenditure. By making a note of every expense you make, you know exactly how much it is that you’ve spent from your salary and how much more can you spend before you go broke for the month. This helps curtail expenses and plan finances better.
Say No To Credit Cards
Living a life with a credit card in your 20’s is dangerous. Unlike debit cards, swiping a credit card won’t deduct a single penny from your pocket. As such, you never realize exactly how many times you swipe you CC and how much credit you’ve already taken. In the end, when the bill comes in, is when you realize that you have gone way beyond your spending capacity. Buying things on a credit card is like borrowing money from the bank, and as we said above, borrowing is not the same as affording. So, this year, leave the credit card home when you go out. Save For a Rainy Day.
Probably one of the most important things to understand in your 20’s is saving for the unforeseen future. While everything may seem rosy now, you never know what the future might bring. Saving and keeping aside money for an emergency is never a bad idea! Save a little every month and keep it aside, you’ll thank yourself later for doing so!
Implementing these resolutions in your daily life will not only help smoothen your financial situation in your 20’s, but they are good practices to inculcate for a sound financial health in the long run. The earlier you start, the better it is!