Starting Your New Life on the Right Foot with Financial Planning
Your 20s are a truly special time in your life. You graduate from college and venture into the working world for the first time. Starting your career is an exciting adventure. Sadly, many young people choose to squander their money, living from one salary credit to the next. While your 20s are the ideal time to enjoy your independence and freedom, you must start your new journey on the right foot with some basic financial planning.
Crucial Monetary Decisions to Make in Your 20s
Create a Budget (And Stick to It)
Once you start earning, create a budget. You can use the 50/40/10 rule to set yourself up for a secure financial future later. The rule recommends putting 50% of your income towards your needs, including rent, travel, food, medical costs and other essential debt. Ideally, find a health insurance plan to help with unforeseen medical expenses. Put 40% of your earnings into savings and investments. You can opt for a structured savings plan, such as HDFC Life Sanchay Plus, to help you create wealth for the future. Savings plans enable you to earn on your idle savings and allow you to build wealth for future goals. You can use the final 10% of your income for your wants or entertainment. The cost of a better smartphone, going to films or taking a vacation should come out of the final 10%.
Think About Emergencies
Consider putting extra savings away in a separate account for future emergencies. If you decide to leave your job or need to take time off for personal reasons, you can rely on your emergency fund to tide you over until you can start earning again. If you’d like to make your money work for you, pick a savings plan that allows quick and penalty-free liquidation. You should be able to easily access the money in the emergency fund when you need it.
Start Your Retirement Plan
It may seem decades away, but you should start planning for retirement from the moment you start earning. Find a retirement fund that encourages you to put money away every month for a secure future. Apart from safeguarding future finances, the plan will help you cultivate good money habits like saving and investing.
You gain a lot of financial freedom when you start earning. By planning your spending and saving, you can curtail bad decisions and create a safety net to fall back on in times of need. You can pick a savings or investment plan that offers life insurance to help your loved ones take care of any debt you may leave behind. As a responsible adult, you must make prudent choices for yourself and your family. Understanding how to create a budget and identifying financial tools to help you meet future goals will help you enjoy a safe and secure future.
ARN: ED/08/22/28596
Term Plan Articles
Investment Articles
Savings Articles
Life Insurance Articles
Tax Articles
Retirement Articles
ULIP Articles
Subscribe to get the latest articles directly in your inbox
Health Plans Articles
Child Plans Articles
Popular Calculators
Here's all you should know about life insurance.
We help you to make informed insurance decisions for a lifetime.
HDFC Life
Reviewed by Life Insurance Experts
HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER
We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.
HDFC Life Sanchay Plus (UIN:101N134V14) is a non-participating, non-linked savings insurance plan. Life Insurance Coverage is available in this product. For more details on risk factors, associated terms and conditions and exclusions, please read sales brochure carefully before concluding a sale.
Popular Searches
- Term Insurance Calculator
- Investment Plans
- Investment Calculator
- Investment for Beginners
- Best Short Term Investments
- Best Long Term Investments
- 5 year Investment Plan
- savings plan
- ulip plan
- retirement plans
- health plans
- child insurance plans
- group insurance plans
- income tax calculator
- bmi calculator
- compound interest calculator
- income tax slab
- Income Tax Return
- what is term insurance
- Ulip vs SIP
- tax planning for salaried employees
- HRA Calculator
- Annuity From NPS
- Retirement Calculator
- Pension Calculator
- nps vs ppf
- short term investment plans
- safest investment options
- one time investment plans
- types of investments
- best investment options
- best investment options in India
- Term Insurance for Housewife
- Money Back Policy
- 1 Crore Term Insurance
- life Insurance policy
- NPS Calculator
- Savings Calculator
- life Insurance
- Gratuity Calculator
- Zero Cost Term Insurance
- critical illness insurance
- itc claim
- deductions under 80C
- section 80d
- Whole Life Insurance
- benefits of term insurance
- types of life insurance
- types of term insurance
- Benefits of Life Insurance
- Endowment Policy
- Term Insurance for NRI
- Term Insurance for Women
- Term Insurance for Self Employed
- Benefits of Health Insurance
- Health Insurance for Senior Citizens
- Health Insurance for NRI
- Best Term Insurance Plan for 1 Crore
- personal accident insurance
- Annuity Calculator