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Building Financial Success Through the Decades – Part One

Building Financial Success Through the Decades – Part One

Building Financial Success is vital no matter what stage of life you’re in. Money and your financial success can be a challenge. It doesn’t matter if you’re single and have a good career; if you’re married with kids, or if you’re nearing retirement – every single person has to deal with financial struggles and successes throughout life.

What we’ve found though is that if you build a solid foundation for your finances through the decades, success can easily be achieved.

In this two part article, we’re going to share with you financial tips that you can implement throughout your 20s, 30s and 40s that can help you reach your goals.

In part one, you’ll learn about building a solid foundation throughout your 20s.

Your 20s

Your 20s can be an exciting time. You may have already landed a job in your field; have met the person you plan or marrying, and may have even started a family already. Regardless of what you choose to do in your 20s in other areas, here are a few financial building blocks to implement that will help you set yourself up for financial success now and in the future:

Map Out a Plan

Create a plan on what you want your financial future to look like. Even if you aren’t planning on buying a house or starting a family anytime soon, it’s important to know what you want so that you can have a financial plan in place for when those things do happen.

Leverage Compound Interest

Learn how to save with compound interest. The earlier you start saving money in life, the further you ahead you will be for a multitude of things such as retirement, purchasing your first home or supporting a family. You can use ASIC’s compound interest rate calculator to see how quickly you can save money using this method.

4 Key Accounts

Use these 4 key accounts in your 20s in order to channel your income:

  1. Saving Account – Pay yourself first. Before paying any bills for the month, pay yourself a certain dollar amount or percentage of your income. If you’re just starting out in life, it doesn’t have to be much, but any little amount will help.
  2. Bill Account – Pay your most important bills such as rent, utilities, transport and insurance premiums. These bills should not total more than 60% of your income.
  3. Short Term Saving – Use 10% of your income for short term goals such as saving for holiday or buying a car.
  4. Retirement – Dedicate 20% of your income into retirement accounts or investments to start saving for the future.

Now that you know how to build a solid financial foundation throughout your 20s. Stay tuned for part 2 of this series so you can learn even more strategies you can apply during your 30s and 40s!

If you would like some assistance, we are here to help. Contact Ricarmo Financial Group today.