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

The 6 Ages of Wealth (Part 1)

The 20s are a very exciting and busy time!  If you are a twenty-something you may still be living at home with your parents, either completing university or an apprenticeship (sometimes still unsure about your career path?), or taking a gap-year to work to make money to travel and enjoy life before the reality of the 'real world' hits. 

This can be a challenging and confusing time often with added and increased pressure for you to make decisions that will impact the direction your life takes.

Once in the workforce, you may be fortunate enough to land your dream job but for the majority, your first 'real' job may be vastly different from first imagined and instead, could involve a lot of paperwork, processes and following rules. This may lead to a drop in enthusiasm and disappointment which can lead to job changes. 

These day’s twenty-somethings rarely stay in a job longer than 2 years and while you may end up with lots of experience and jobs under your belt, it could be a potential pitfall as some employers may see the endless list of positions on your resume as a deterrent.

On the plus side, the decade of the 20s is a time to be carefree and enjoy life (party time!), with few worries except perhaps a HECS debt and potentially mum and dad suggesting you move out!  You can live your life as it comes.

If you haven't started already, 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 understand 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 see a financial planner who can help to set you up with good lifestyle and financial habits, now and into the future.
If you'd like to know what's involved in seeing a financial advisor, check out our blog '6 Stages of Financial Planning with Sound Life.'

Your life is a journey worth planning and it's never to early to start!

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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