#Goals: 6 Realistic Financial Milestones You Can Achieve in Your 20s

Your 20s is said to be the perfect time to start building the foundation of your wealth and assets for when you get older. The concept sometimes creates pressure and fear, often setting up the idea of financial management as this impossible and insurmountable hurdle.

As cliché as this sounds, don’t panic. Instead of pushing yourself to reach a huge goal, remind yourself that every person’s financial journey is unique. In time, you’ll learn how to craft the steps that will lead you towards the achievable milestones before you hit 30.

With careful planning and financial awareness, here are some of the realistic milestones that you can reach in the coming years.

 

1. Learning how to create financial goals

There will be a lot of trial and error during the early stages of your journey. Not a lot of people would know how to handle their first few paychecks properly. Soon, you will become familiar with your average weekly and monthly spend, as well as separating the necessary expenses from the splurges.

These learnings will be the backbone of your financial management system. Chart out your savings: how much you need to set aside per month, how much you can spend, and so on. Once you find your groove and see which technique works for you, things will become more manageable down the road.

2. Being debt-free

Debts can come in the form of old-fashioned loans from friends or accumulated credit card bills from the previous months’ purchases. Ideally, somewhere in your 20s, you’ll be able to rid yourself of these anchors that drain your earnings as soon as you receive it.

A couple of simple ways to achieve this is to live below your means and learn how to say no. A lot of debts come from unexpected purchases, impulse buys, or sometimes, peer pressure. That time when you chipped in for your friend’s expensive birthday gift or got talked into drinking on a Friday night can put a toll on your budget, too.

Owning a credit card is not bad, and neither is borrowing money from time to time, as long as you are sure you can repay it in the required amount of time.

3. Building an emergency fund

As much as #YOLO sounds appealing, we can’t always live life without a safety net. That is mostly what an emergency fund is: savings to dip in during unforeseen events such as unexpected medical costs, employment redundancies, and others.

An emergency fund should ideally amount to three to six times the amount of your salary. It may sound intimidating, but remember that it’s something that you can always work on little by little. Spare a couple thousand (or how much you may be able to handle) per cut-off and safeguard your future from any untoward incidents.

Note that an emergency fund is different from your savings account, so remember not to dip into this unless needed!

4. Getting insurance

Insurance is another intimidating term for people in their 20s. However, with the various packages available today, getting one is quite attainable. The two most important types are life insurance and health insurance.

There are many insurance providers and banks that offer insurance with minimum premiums. Insurance packages can also be adjusted according to what you can afford. The best way to find out about them is to research, inquire, and compare. Not all types of life insurance are the same and getting educated is the best way to navigate through the decision-making.

companies provide health insurance to their employees, it may not be enough to rely on this during emergencies or critical illnesses. Should you decide to leave the company, you will lose your insurance privileges.

Consider investing in prepaid health cards or coverage plans that compliment what you are receiving now. After all, it doesn’t hurt to be very prepared. Cover all your bases with insurance so that you don’t have to put out a lot of cash should accidents arise.

5. Setting up a retirement plan

Retirement plans are not just something you should think about when you’re older. If you save now, you’ll have time on your side, and you’ll be able to grow your money.

Picture this: If you start saving in your 20s, no matter how small the amount is at first, you’ll have 35-40 years’ worth of savings by the time you’re 60 or 65. That amount will be more substantial than if you start in your 30s.

Life insurance nowadays also comes with other benefits that you can enjoy later down the road. An example of this is through a forced savings plan. Life insurance providers can endorse you to buy a policy that includes variable unit linked investments. This investment can grow in 5, 10, or 20 years from now. When that investment matures, you’ll be able to access those funds so that you have assets to utilize for other investments, a new business, or a big-ticket purchase in the future. The earlier you start, the better!

The key here is to start now. You don’t have to pour in a significant amount, but at least you already direct a portion of your money into safeguarding your future. That’s a good thing!

6. Making money through other avenues

Your 20s is an excellent playground for other sources of income. If you have other hobbies and interests that you can monetize, now would be a good time to try it out. This can add to your savings or personal funds and make your financial goals more attainable.

If you want to focus on your 9-to-5, that’s alright too. You can read up on financial resources about investment. There are many kinds, like mutual funds or stocks. Find out which one appeals to you the most.

There are free seminars and resource materials online and offline that can help you make more sense of the things you want to explore. Once you understand financial trends, it won’t be difficult to pick your next investments.

 

Final Thoughts

Saving up should not be a laborious task. Be kind to yourself (and your paycheck) by only setting aside a reasonable amount regularly. After all, it’s also important to have a budget for leisure and personal activities so that you can relax and reward yourself for your hard work!

However, there are times that no matter how far into the future you plan, emergencies may arise. In that case, turning to loans may help alleviate your financial burdens. Cashalo makes it easy to apply for a loan online, with flexible payment options and low interest rates. Having this option available will add to your peace of mind.

Achieve your goals at a slow and steady pace. As long as you keep monitoring your budget, you’ll go far with your savings plan.

Register for Cashalo today and experience the ease of borrowing money right at the palm of your hands. Visit https://www.cashalo.com/faq/ for more details.