The 20s is your selfish decade. You are young and free with the independence to do anything you want. Well, isn’t that what life’s all about? Living out to the fullest.
The 20s are also a great opportunity to set yourself up for the future. A mixture of smart financial planning and fun activities. That’s the perfect recipe to be financially secure and have wonderful memories to reminisce when you are in your 60s.
Here’s a small checklist that you should tick off in your twenties so that your golden years are filled with joy and not regret.
- Travel, Travel, Travel A Lot!
If you want to enrich your soul when you are still young, travel. When you visit places, you discover the world through other’s eyes. You learn how people live, experience how delicious food really is and most important, you learn empathy and a new humbling respect for the world. No other activity can deepen you with memories and life lessons the way travel does.
- Build Your Credit
Yours 20s are also the time when you make your first big purchase – that first car or your very first home. Most often, you will apply for a loan. To ensure your loan isn’t denied, you need to have a solid credit score.
A credit score is a numeric value which determines your credit worthiness. Pay your bills on time and ensure you do not default. A good credit score helps you get better deals (low interest, higher principal amount) and should play a major part in your financial planning goals.
- Maintain your health
A fit body and mind work wonders in your life. It will keep you agile, sharp, and happy in your golden years. Get your body in shape and your mind awake when you are young. It is hard to get fit as you age.
Develop a daily exercise routine, eat healthy veggies and fruits, read books, meet people, and smile more. No amount of retirement planning and goals will work if you are not fit. There is no greater gift than good health.
- Plan your Retirement
Yes, retirement planning plays an important role in your 20s. Treat it like a marathon, slow and steady, and you will win the race.
- The most important action you can take is to learn to save your money.
- As you save, you will realise the power of compounding.
- Invest a portion of the saved money to double your savings.
- Reinvest a portion of the double savings.
Smart financial decisions in your 20s will ensure you live without worry when you’re in your 60s.
- The value of Insurance
While your 20s are your years of freedom, they are incomplete without insuring your family and yourself.
Plans such as Aegon’s iInvest make sure you get an excellent sum once the policy matures and if you die before the policy expires, the sum assured is paid to your family ensuring they don’t face any financial problems.
Invest in insurance plans for they form the backbone for your family’s stability in your absence.
Tele Brands summed it up perfectly. ‘Choose Wisely, Live Well’. Your twenties are a decade filled with potential. Only you can choose how you lead it. The steps you take in this decade decide your future.