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What you’ll spend your money on in your 20’s

 

Your twenties are the years where you’ll spend time trying to get on your feet and figure out life. You might change careers, travel, or get your heart broken. Your twenties are also about having fun and building lifelong memories. But you need to bear in mind that every decision you make will have a ripple effect on the rest of your life. Make sure you make wise decisions, especially with your finances. Living for the moment might seem fun while you’re young but soon old age will catch up with you.

Here are a few things you’ll spend your money on.

Apartment

When you get your first job you might not able to afford a swanky house on the hills. But you should find affordable accommodation which will meet your needs and budget. You could choose to stay alone or share your place with a roommate. Sharing will save you a lot of money and will help cut down on costs.

Travelling

When you’re young and don’t have a lot of responsibility, it’s the perfect time to see other parts of the world. Travelling will help to give you a new perspective on life and will enrichen you. Venturing to a foreign destination is money well spent and you won’t live to regret it. Just make sure you save up enough and don’t max out your credit cards in order to have a good time.

Retirement fund

It might seem strange to start thinking about your twilight years when you’re young, but it’s a reality you can’t run away from. You’ll get old one day and if you don’t have a retirement fund, you’ll live to regret it.This will help to give you the same standard of living you had when you were working.

Savings account

You can never save enough money, and most people only start saving only when they’re older. When you get your first real job you should open a savings account. This can go towards paying for your house one day or pay off any debt you may have accumulated. You need to think beyond today and invest in your future.

Budget

You’ll learn to set up a budget. Living on your own will teach you to become independent and not spend money frivolously. You’ll quickly learn that cash doesn’t grow on trees. Of course, you’ll make mistakes in the beginning as you’ll buy overpriced sneakers or go out for lunch instead of bringing food from home. After some time, you’ll learn to set up a budget so you can see where you’re money is going and how you’re spending it.

Get medical aid

It’s important to have medical aid because you could find yourself lying in hospital due to a accident or an illness. Doctors and medicine can be expensive and if you don’t have the money or medical aid you could find yourself with a lot of bills.

Gym fees

You need to exercise and keep your body healthy. Exercise is good for your health and it also controls weight and reduces stress and anxiety.

Buying a car

Resist the urge to splurge on the latest expensive car model when you’re first starting. Be realistic about your budget and what you can afford. You should buy a car that better suits your lifestyle and your pockets. There are many excellent second-hand cars that will meet all your needs. You can buy used cars in Gauteng or in any other province.

Student loans

You should pay off any student loans. Create a financial plan which will help you pay off your debt because the longer you fail to pay off your debt the more interest you’ll acquire. If you let it linger and grow you’re just setting yourself up for more debt over time.

Credit card

Try to hold off on getting a credit card and instead save as much as you can. The things you buy off credit are things you can’t afford. You may think buying that red designer bag is just what you need, but frivolous spending could be costly in the long run. A credit card can be more costly than anything. Being able to swipe wherever you please can put you in a mountain of debt.

Your twenties are a time to have fun and not be mounted by debt. Make sure you spend your money wisely and you save. Saving may not seem important now but it’ll help you in the long run.