You start earning a stable salary for the first time in your 20s. We know that many of you work during your school and college years. But more often than not this would be part-time work. Then the money you would earn would be used as pocket money. But in your 20s once you graduate from college you would start earning a steady income. We know that this can be an exciting moment in your life. That is because now you have the freedom to purchase whatever you like. But you should not go overboard. We think that starting from this age you need to start becoming more financially responsible. However, we know that many 20 years old have no idea on how to do this.
Establish a Budget
As a tax accountant from LINK Accountants, you may be earning a steady income. In that case, we understand the urge you would get to go on a shopping spree. But you need to start becoming more responsible. This does not mean you have to be frugal. Instead, it simply means that you need to impose some restrictions on your spending habits. The best way to do this is by establishing a budget. However, understand that you cannot create this budget on a whim. Instead, make sure to go through all your expenses. You can only do this if you keep all the receipts. Then at the end of the month, you can see how much of the money you spent. This would then give you an idea of how to create a budget. Furthermore, you also identify the unnecessary payments. Thus, by creating a budget you would not end up spending your entire salary. Instead, you would even be able to save a portion of this salary.
Have a Rainy Day Fund
We know that you would have a current account that you would use on a daily basis. This is what you use to pay for your rent and other utilities. However, apart from these current accounts you also need to look at qualified SMSF accountants. That is because no matter how old you are you need to start creating a rainy day fund. This is the money that you should use in case of an emergency. However, remember that an emergency does not constitute as needing a pair of shoes on sale. Instead, make sure to keep your hands off this money until you need it.We know that you are used to leading a carefree life. But this is the time to become more responsible especially with regard to your finances.