The 6 Ages of Wealth!! Part 1 - In your 20s

The 6 Ages of Wealth Part 1

The 20s are a very exciting and full-on time. Today’s 20’s are very different to any before. Most 20-somethings are living at home with their parents, if they can stand them, completing university - still with no idea what career they want, or perhaps taking a “gap-year” to travel, working to make money to stay away from home and reality a little longer. These issues in themselves are challenging and some may feel real pressure to make decisions which could alter their lives. 

After these accomplishments and decisions are completed however, it’s time for the real world - the workforce. For a rare few the dream job will happen instantly but for the majority of 20-somethings the first job is different to what was imagined while doing studies and instead is a lot of paperwork, processes and following rules. This inevitably can cause drops in enthusiasm and disappointment which causes job changes. These day’s twenty-somethings rarely stay in a job longer than 2 years which means they end up with lots of experience and jobs under their belt but is also a potential pit full as some employers may see the endless list of positions on your resume as a deterrent.

On the plus side the decade of the 20’s is the party time - with few worries – except perhaps, a HECS debt and mum and dad ordering you to move out – you can live your life as it comes.

It’s a good time to lay the foundations of saving something for later. Avoid credit cards and buy-now-pay-later schemes.

Here are six tips for your 20s:

  1. Save Half – You don’t have many large outgoings, so save as much as you can. Rule of thumb – particularly if you are living at home – is save half!
  2. Stay at home – More and more people are staying at home longer to save for, say, a house deposit. But this only works if you are actually saving.
  3. Start early – The federal government provides incentives for low-income earners to put money into super. So you might want to look at this while you have surplus cash flow.
  4. No pressure – You don’t have to get it all right now. You don’t have to have all the answers.
  5. Insurance – You might not need insurance yet, but at 27 or so you’ll get it as cheaply as it will ever be. For health cover, do it by 30.
  6. Take advice – One thing many people say is “I wish I had listened to advice in my 20s.” Listen to others who have gone through it or even better see a financial planner.

Sound Life Financial Services 98411688

Source: Taken from an article written by Teresa Ooi from the magazine “The really simple guide to Money” by Big Splash media Pty Ltd

The information contained in this blog is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial planner.

Jane Looker, Thelma Jaekel and Sound Life & Superannuation Agencies Pty Ltd t/as Sound Life Financial Services are Authorised Representatives of Synchron AFS Licence No. 243313.

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