Life is like a river. It takes many turns; some are beautiful, and some are unpredictable. From your childhood to college life, from that school classroom to the college canteen, you learn different ways to live life. After the higher studies, the time comes when you start earning money and building your career. This is the age of the 20s when Save, Plan and Invest are not in the dictionary of youngsters. If you are in your 20s, you must be enjoying brands, parties, friendship, social gatherings, and this phase of your life. But have you ever thought about the money you have. Aren’t you so busy in cherishing your life so casually? This age is the best time to deal with your money. The decisions that you make in this age will create a secure path to your future. Here is a crash course for you that will surely help you to manage your money:
Set up an Emergency Fund: Problems can attack you anytime without any invitation. You can’t even predict the next moment so you must be well prepared for any such crunch. The best way to tackle such financial turns is to set up an emergency fund. Start saving daily and make it a habit to input a drop of money in your fund. Plan your expenses and savings and attend your emergency fund daily or monthly. This will be helpful to cope up with any financial crunch, and you can party hard even in the difficult time of your life.
Close Your Education Loan: In India, most of the students avail an Education Loan to pursue higher studies. The repayment of this loan starts when you secure a job after completing your studies. Many individuals forget to repay the education loan EMIs that affects the CIBIL Score of the individual. So, pay the EMIs timely. Extract the EMI amount from your salary and close your education loan. A good track record will build a creditworthy profile that leads to a clean financial health.
Buy an Insurance Cover: If someone advises you to buy an insurance policy in this age, you will surely take it as a joke with a mentality of “I am too young to buy an insurance policy”. But you must know that the age of the 20s is the right time to buy an insurance policy. If you avail insurance in this age, your premium will be less as premium increases with the age of the customer. You can choose a health insurance policy for yourself and your family. Consider the expenses and needs before buying any insurance policy. For example, if you buy an insurance cover of Rs. 50 lakh for 30-years at an age of 25 years, the annual premium will be Rs. 4,181. But the same will cost you Rs. 5,091 if you are availing the life cover at an age of 30 years. The insurance will cost you cheaper in the age of 20s.
So, start planning for your future. Financial planning has no age limit. Take right decisions in your age of the 20s and enjoy the benefits of the whole life. This age is also perfect for buying a property and taking a home loan. The steps that you will take at this age will make your future journey smooth and easy. Plan your financial health and cherish your youthful life.
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