Every Financial Habit You Should Cultivate Based On Your Life Stage
Good financial habits are key to both monetary success and psychologically well-being. They are the key to get your finances in shape so that you can reap the rewards of your effort in years to come. As the year draws to a close, perhaps it is time for each of us to cultivate and develop new effective financial habits so that you are in a better financial position for the new year. Here are 5 financial habits which you should definitely consider developing in 2020.
Financial Habits You Should Cultivate When You Are In Your 20s
Avoid Lifestyle Inflation
Lifestyle inflation is the phenomenon where you experience an increase in spending as your earnings increase. Sometimes, lifestyle inflation creeps into your life unknowingly without your even knowing.
A telling sign of whether you are a victim of lifestyle inflation is when you find yourself spending on unnecessary and unrealistic material wants. For example, you start spending money on buying a nice car (even though you have a functional one) or start chasing after the latest gadgets to show that you are up-to-date with technology. Often times, these wants often stem from your desire to “catch up” with your peers’ latest gadgets so that you are seen as “on par” or above your peers.
The reason why you need to be wary of lifestyle inflation is your spending can grow exponentially even as your earnings become stagnant. When that happens, you will find your savings depleting quickly. In worse case scenarios, you might even find yourself taking on debts to fulfil your expensive lifestyle.
Seek Quality Financial Advice
An area that is very often neglected when you are in your 20s is your personal financial planning. That’s because most of us spend much of our time on our career when we are in our 20s. We simply don’t have time to care about our personal finance when we are too busy striving forward in our career. However, studies have shown that those who seek quality financial advice early find their wealth being uplifted to a greater extent than those who didn’t. Thus, one of the important financial habits to cultivate when you are still young is to start seeking quality financial advice from professionals.
Looking for quality financial advice can be as simple as reaching out to the right professional. Reach out to Moneyline.sg today to seek quality financial advice that will help you achieve more in life.
Financial Habits You Should Cultivate When You Are In Your 30s
Stick Closer To Budget
As you enter into the next stage of your life, you will find yourself managing rising financial obligations. Some of you might also have children to take care of, which will lead to increasing financial obligations. With so many financial obligations to deal with, it is important for you to learn how to budget AND stick to your budget. This will ensure that you do not run into financial trouble.
Adopt Good Debt Management Practices
When you are in your 30s, chances are you find yourself saddled with a number of financial obligations such as car and/or housing loan. Some of you might even find yourself trapped in credit card loans to help you tide over your cash flow problems. If you do not adopt good debt management practices, you might find yourself struggling between debt and wealth accumulation.
One good practice of debt management is to avoid unsecured debt as much as possible. Another way you can practice good debt management is to review your loan on a yearly basis to ensure that you are on the best loan package available.
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Manage Anxiety Of Wealth Accumulation
Compared to those in their 20s, Singaporeans who are in your 30s are actively trying to grow your wealth. While being proactive in wealth accumulation is commendable, the danger of anxiety of wealth accumulation still lurks. Singaporean who are in your 30s have shown a higher tendency of being worried about money both in the short and long run.
If the anxiety of wealth accumulation is not managed properly, it can lead to less-than-ideal outcomes such as excessive speculation for quick gains. In order to avoid such less-than-ideal outcomes, the simplest way is to seek professional financial advice from your financial consultant. He/she can help you design a steady long term plan for wealth accumulation so that you do not suffer from anxiety of wealth accumulation.
Wealth accumulation is a long term game plan that needs to be well thought through and well executed in order for it to work. Learn how Moneyline can help you devise the best wealth accumulation plan based on your needs here.