We undergo many financial challenges between the ages of 20 to 29. Here are a few common situations that you might identify with. Don’t worry, we’ll tell you how to deal with them.
I’m not getting a pay cheque that’s fat enough at my present job. Story of my life! Is there something I can do to make few extra bucks?
In your 20s, any extra cash counts. You can certainly look for ways to earn more money. Turn your passion into a profitable weekend hobby, perhaps. Try your hand at some freelance work. Think you’re a decent musician? Try getting a few gigs at the local watering hole and sing your way to the bank. Love writing? Write for a magazine, maybe? Monetise your talents. Also, remember that a penny saved is a penny earned. So, be cautious with your spending and cut costs where you can. Eco-friendly methods of getting around could save you a few bucks. Why not walk, or cycle more often? Use public transport, maybe?
It has been 5 years since I started working but unlike many people my own age, I have not managed to save any money.
Remember, it is never too late to start saving. In fact, it’s important to begin saving right away. Your early investments decide how much you have in your later years. It is very important for all those people just stepping into working life to realise the importance of savings early on in their careers. If you find saving difficult, why not start small with a Recurring Deposit. You can use an RD to save for a goal like making the down payment on a car. You could also consider investing in Mutual Funds for the long term. Did you know that you can start investing in a Mutual Fund with as little as Rs. 500?
Additional Reading: Savings Hacks That Work
I feel burdened by my student loan.
More than a quarter of people who fall under the millennials category feel a huge sense of relief and accomplishment when they finally put their student loans behind them. We completely understand. Those monthly payments to clear that loan does stretch your wallet thin. This no doubt makes it more difficult to honour other financial commitments. Here’s how you can reduce the burden of an Education Loan.
My parents encouraged me to buy a house because they felt real estate was a good investment. But the purchase has drained my finances.
Here’s what you can do if you’re weighed down by a heavy Home Loan. Negotiate the Home Loan with your lender. Ask if your Home Loan can be restructured, taking into consideration your future income. If you’re living in the house or apartment you purchased, think about giving it out on rent and moving into a less expensive place until your loan is paid off.
I am constantly being advised to buy insurance but I don’t know where to begin.
There’s no doubt that you most definitely need Life Insurance and Health Insurance. Before you make a hasty decision, consider your lifestyle and how many dependents you have. Life Insurance is not to be confused with an investment that will give you good returns. We have Mutual Funds for that. The goal of an insurance policy is to financially secure your family in case something were to happen to you. Once you get married, getting a Term Life Insurance policy is a must, if you want to safeguard your family.
It’s a different story with Health Insurance. A Health Insurance plan is essential at any point in life, especially as you grow older. Beat rising healthcare costs by getting yourself insured with a Health Insurance policy. Here are a few common misconceptions about Health Insurance.
Additional Reading: How To Resolve Financial Dilemmas At Various Life Stages
Managing money can be a challenge. But fear not! With a little bit of financial planning, you’ll be well on your way to achieving financial nirvana.