Smart Financial Moves for Single Women in Their 20s

A single woman in her early twenties finds herself at exciting crossroads in her life. Let us look at some of the smart financial moves women should make for an independent and secure future.

Planning for Retirement: Are we looking too far into the future too soon? No, because the earlier you start planning for your retirement, the easier it becomes. You can start with a small corpus that can grow along with time. It is a great idea to be independent. If you are employed, ensure that you have an additional plan in place.

Have a Clear Financial Plan: Saving for your retirement is one aspect. You should also look forward to creating a financial plan for short periods in the future. Start with a simple five-year Envisage where you will be after five years. Break this plan into yearly and monthly goals.

Save Money for the Future: It is the right time for women to save for the future. You are still single and do not have many financial responsibilities. Save money wisely if you wish to purchase a new home. In case you are a business entrepreneur, you may need money to invest in your company as capital. You should also factor in these easy Business Loans.

Focus on Your Career: The early 20s is the right time to focus on building a great career. It requires you to work hard to achieve your goals. As you are in your 20s, you have the necessary drive to work hard and excel in your career. If it entails switching companies or jobs, so be it. However, your objective is to keep moving forward in life.

Have a Budget in Place: Budgeting is an essential part of your financial planning.

Your Loans Play an Essential Part: Most young professionals today start with a liability on their hands. We are referring to the education loan repayments. It is proper on your part to service the loan instalments before settling down in life.

Have the Right Insurance: Like it or not, it is an uncertain world out there. The cost of medical treatment is rising to alarming levels. You need to have the right balance of health and Life Insurance. It can save you in times of emergency as you would not have to depend on your emergency funds. Starting early in life is beneficial because the younger you are, the less premium you have to pay.

Do Not Forget Life Insurance: Health Insurance is essential, Life Insurance is crucial. Many people consider Life Insurance as an unnecessary expense, especially if they are single. However, it is beneficial to have Life Insurance.

The Sinking Fund Concept: If you are single, it is essential to have an emergency fund in place. You never know when you can lose your job. An emergency fund can save you from unexpected expenses and help take the weight off your shoulders. It is ideal to have one year’s income as a sinking fund. It can help you make ends meet while you search for a new job.

Put Things in Order: Prepare a will bequeathing your assets to your near and dear ones. You should also explore possibilities of donating your vital organs like eyes, and so on. Keep important documents like bank statements, insurance policies, loan accounts, property documents, and jewellery, and so on in a safe place. Document it and keep it in the safe custody of someone you trust.